-
Same store sales for fourth quarter up in all retail banners over a
strong Q4 2013:
-
2.8% at Canadian Tire
-
4.9% at FGL Sports (9.4% at Sport Chek)
-
1.2% at Mark's
-
Fourth quarter diluted earnings per share (EPS) up 5.1% or 12.8% after
normalizing for non-operational costs despite dilutive effects of
selling 20% of Financial Services business
-
2014 annual revenue of $12.5 billion, income before tax (IBT) of $878.2
million and diluted EPS of $7.59 exceed strong results achieved in 2013
-
Financial Services achieves a record $5 billion in gross ending accounts
receivable
TORONTO, Feb. 26, 2015 /CNW/ - Canadian Tire Corporation, Limited
(TSX:CTC, TSX:CTC.a) today released fourth quarter and full year
results for the period ended January 3, 2015. Reported results include
an additional week of operations while same store sales are reported on
a comparative basis.
"We delivered another record fourth quarter and impressive annual
results, despite unseasonable weather compared to last December. We
continue to put the numbers on the board by effectively executing our
strategic priorities and I'm proud of how our team has continued to
innovate and adapt in a rapidly changing retail environment. We're
entering 2015 in a position of operational strength," said Michael
Medline, President and CEO, Canadian Tire Corporation.
"Our investments in digital are paying off in-store and through
marketing campaigns, both of which are exciting our customers and
driving sales. That said, we have a long way to go in e-commerce and
you will see us put our brand and our assets to work as we continue to
evolve and become a world-class online retailer," concluded Medline.
CONSOLIDATED OVERVIEW
FOURTH QUARTER
-
Consolidated revenue increased 9.8% or $325.1 million to $3.7 billion in
the fourth quarter over the same period last year, as a result of
higher shipments at Canadian Tire, strong sales at FGL Sports and
increased sales at Mark's.
-
Fourth quarter consolidated retail sales increased 7.3%, up $289.6
million to $4.3 billion. This is attributed to enhanced assortments
and successful marketing campaigns that drove higher sales at all
retail banners as well as an additional week of retail sales during the
quarter.
-
Diluted EPS was $2.44 in the quarter, up 5.1% over the fourth quarter of
2013 and up 12.8% after normalizing for the non-operational costs
associated with the fair value adjustment on the Scotiabank redeemable
financial instrument and costs related to the formation of CT REIT in
the prior year. EPS performance reflects strong revenue and gross
margin contribution from both the Retail and Financial Services
segments.
FULL YEAR
-
Consolidated revenue for the full year increased 5.7% over 2013 to $12.5
billion, reflecting a strong contribution from the Retail segment, led
by Canadian Tire and FGL Sports.
-
Consolidated retail sales for 2014 were up 4.8%, or $631.3 million, to
$13.9 billion, due to sales growth across the retail banners.
-
Diluted EPS for the year increased 9.8% to $7.59, or 13.1% after
normalizing for the non-operational costs associated with the fair
value adjustment on the Scotiabank redeemable financial instrument, the
premium on the early redemption of medium term notes in Q2 2014 and
costs related to the formation of CT REIT in the prior year. EPS
performance reflects strong revenue and gross margin contribution from
both the Retail and Financial Services segments.
RETAIL SEGMENT OVERVIEW
FOURTH QUARTER
-
Retail segment income before income taxes was up 21.8%, or $41.7
million, to $234.5 million in the fourth quarter of 2014 compared to
2013, or 19.5% after normalizing for the one-time costs associated with
the formation of CT REIT in the prior year.
-
Canadian Tire retail saw fourth quarter retail sales increase 8.3% and
same store sales were up 2.8% over 2013. Retail and same store sales
at FGL Sports were up 15.0% and 4.9% respectively for the quarter due
to increases across all categories and led by strong same store sales
of 9.4% at Sport Chek. Mark's retail sales in the fourth quarter grew
5.4% and same store sales were up 1.2% over the prior year. Petroleum
retail sales decreased 3.6% in the quarter, due to the sharp decline in
gas prices and lower gasoline volumes.
FULL YEAR
-
Retail segment earnings before income taxes increased 14.7% to $531.5
million for the full year compared to 2013, or 15% after normalizing
for non-operational costs associated with the early redemption of
medium-term notes and the formation of CT REIT.
-
For the full year, Canadian Tire retail sales were up 4.4% over 2013
results and same store sales increased 2.4%. FGL Sports' 2014 retail
sales were up 11.5% (17.7% at Sport Chek) and same store sales
increased 6.9% (10.6% at Sport Chek) over a strong 2013. Mark's full
year retail and same store sales were up 4.5% and 3.1%, respectively,
over 2013.
CT REIT OVERVIEW
-
As disclosed in the Q4 2014 CT REIT release issued on February 23, 2015,
CT REIT completed two land acquisitions, two developments and six
intensifications in the fourth quarter at a total cost of $36.1
million. On a full year basis, CT REIT completed thirteen property
acquisitions, two land acquisitions, two developments and six
intensifications at a total cost of $264.6 million.
-
In its first full year of operations, CT REIT exceeded its financial
forecast and ended the year well-positioned for 2015.
FINANCIAL SERVICES OVERVIEW
-
Financial Services posted strong fourth quarter gross average credit
card receivables growth of 7.0%, driven by increased average account
balances and credit charges.
-
Income before income taxes for the quarter was flat compared to the
strong growth achieved in 2013. Fourth quarter 2014 earnings results
reflected increased investments in receivables via deferred financing
and balance transfer offers that result in immediate revenue deferral.
-
For the full year, income before income taxes was up 7.8% over 2013
reflecting strong gross average accounts receivable growth and
investment in account acquisition.
CAPITAL ALLOCATION
CAPITAL EXPENDITURES
Total capital expenditures for 2014 were $721.8 million compared to
$544.1 million in 2013, reflecting increased store network growth and
accelerated information technology project spending, investment in
additional distribution capacity and investments related to properties
acquired by CT REIT from vendors other than CTC.
QUARTERLY DIVIDEND
On February 26, 2015, the Company declared quarterly dividends payable
to holders of Class A Non-Voting Shares and Common Shares at a rate of
$0.525 per share payable on June 1, 2015 to shareholders of record as
of April 30, 2015. The dividend is considered an "eligible dividend"
for tax purposes.
Over the course of 2014, the Company declared dividends to shareholders
of $154 million, an increase of 29% over the prior year. The current
annual dividend rate on Common shares and Class A Non-Voting shares of
the Company is $2.10 per share.
SHARE REPURCHASE
During 2014, CTC purchased Class A Non-Voting Shares at a cost of $283.7
million, including $83.7 million in connection with its announcement in
October that it intended to repurchase a further $400 million of its
Class A Non-Voting Shares through to the end of 2015. In addition, the
Company repurchased Class A Non-Voting Shares at a cost of $6.9 million
for anti-dilutive purposes during the year.
NORMAL COURSE ISSUER BID
CTC intends to make a normal course issuer bid to purchase from March
2, 2015 to March 1, 2016, through the facilities of the Toronto Stock
Exchange (the "TSX") or alternative trading systems, if eligible,
certain of its outstanding Class A Non-Voting Shares (the "2015
NCIB"). The number of Class A Non-Voting Shares which may be purchased
during the period the 2015 NCIB is outstanding will not exceed 4.0
million Class A Non-Voting Shares, which is approximately 5.6% of 70.9
million shares, the approximate public float of Class A Non-Voting
Shares issued and outstanding as at February 25, 2015.
CTC has a policy of purchasing Class A Non-Voting Shares to offset the
dilutive effect of the issuance of Class A Non-Voting Shares pursuant
to its stock option plan and dividend reinvestment plan. CTC intends to
continue that policy. CTC may also purchase additional Class A
Non-Voting Shares if, after consideration of various factors, CTC
determines that the purchase would be expected to be in the best
interests of CTC and contribute to enhancing the value of the remaining
Class A Non-Voting Shares.
The total number of Class A Non-Voting Shares purchased during 2014 by
CTC was 2,600,000, consisting of 100,000 shares purchased under its
NCIB which expired on February 25, 2014, and 2,500,000 shares purchased
under its NCIB which expired on February 25, 2015. The weighted average
price at which the 2,600,000 Class A Non-Voting Shares were purchased
was $111.80.
Any purchases of Class A Non-Voting Shares by CTC pursuant to the 2015
NCIB will be made through open market transactions at the market price
of the Class A Non-Voting Shares at the time of the acquisition or as
otherwise permitted under the rules of the TSX. For open market
transactions, CTC will be subject to a daily repurchase restriction of
50,858 Class A Non-Voting Shares, which represents 25% of the average
daily trading volume of the Class A Non-Voting Shares on the TSX, net
of NCIB purchases, for the six months ended January 31, 2015. The
Class A Non-Voting Shares acquired by CTC pursuant to the 2015 NCIB
will be restored to the status of authorized but unissued shares.
CTC's 2015 NCIB is subject to regulatory approval.
For additional information, refer to the Company's Q4 2014 Management's
Discussion and Analysis.
To view a PDF version of Canadian Tire Corporation's full quarterly
earnings report please see: http://files.newswire.ca/116/CTC_2014_Q4_and_Year_End_MDA_and_Notes.pdf
FORWARD-LOOKING STATEMENTS
This document contains forward-looking information that reflects
management's current expectations related to matters such as future
financial performance and operating results of the
Company. Forward-looking statements are provided for the purposes of
providing information about management's current expectations and plans
and allowing investors and others to get a better understanding of our
anticipated financial position, results of operations and operating
environment. Readers are cautioned that such information may not be
appropriate for other purposes.
All statements other than statements of historical facts included in
this document may constitute forward-looking information, including but
not limited to, statements concerning the Company's intention to make
a normal course issuer bid (including statements regarding the
Company's intention to continue its policy of purchasing Class A
Non-Voting Shares to offset the dilutive effect of the issuance of
Class A Non-Voting Shares pursuant to its stock option plan and
dividend reinvestment plan and statements regarding the Company's
potential purchase of additional Class A Non-Voting Shares under the
heading "Normal Course Issuer Bid") and other statements concerning
management's expectations relating to possible or assumed future
prospects and results, our strategic goals and priorities, our actions
and the results of those actions and the economic and business outlook
for us. Forward-looking information is based on the reasonable
assumptions, estimates, analyses, beliefs and opinions of management
made in light of its experience and perception of trends, current
conditions and expected developments, as well as other factors that
management believes to be relevant and reasonable at the date that such
information is provided.
By its very nature, forward-looking information requires us to make
assumptions and is subject to inherent risks and uncertainties, which
give rise to the possibility that the Company's assumptions, estimates,
analyses, beliefs and opinions may not be correct and that the
Company's expectations and plans will not be achieved. Although the
Company believes that the forward-looking information in this document
is based on information, assumptions and beliefs which are current,
reasonable and complete, this information is necessarily subject to a
number of factors, risks and uncertainties that could cause actual
results to differ materially from management's expectations and plans
as set forth in such forward-looking information.
For more information on the risks, uncertainties and assumptions that
could cause the Company's actual results to differ from current
expectations, refer to section 2.10 (Risk Factors) of our Annual
Information Form for fiscal 2014 and to sections 6.4.1.3 (Retail
segment business risks), 6.4.2.3 (CT REIT segment business risks),
6.4.3.3 (Financial Services segment business risks) and 10.0
(Enterprise Risk Management) and all subsections thereunder of our 2014
Management's Discussion and Analysis, as well as the Company's other
public filings, available at www.sedar.com and at www.corp.canadiantire.ca.
Statements that include forward-looking information do not take into
account the effect that transactions or non-recurring or other special
items announced or occurring after the statements are made have on the
Company's business. For example, they do not include the effect of any
dispositions, acquisitions, asset write-downs or other charges
announced or occurring after such statements are made.
The forward-looking statements and information contained herein are
based on certain factors and assumptions as of the date hereof. The
Company does not undertake to update any forward-looking information,
whether written or oral, that may be made from time to time by it or on
its behalf, to reflect new information, future events or otherwise,
except as is required by applicable securities laws.
CONFERENCE CALL
Canadian Tire will conduct a conference call to discuss information
included in this news release and related matters at 12:00 p.m. ET on
February 26, 2015. The conference call will be available simultaneously
and in its entirety to all interested investors and the news media
through a webcast at http://corp.canadiantire.ca/EN/investors, and will be available through replay at this website for 12 months.
ABOUT CANADIAN TIRE CORPORATION
Canadian Tire Corporation, Limited, (TSX:CTC.A) (TSX:CTC) or "CTC," is a
family of businesses that includes a retail segment, a financial
services division and CT REIT. Our retail business is led by Canadian
Tire, which was founded in 1922 and provides Canadians with products
for life in Canada across its Living, Playing, Fixing, Automotive and
Seasonal categories. PartSource and Gas+ are key parts of the Canadian
Tire network. The retail segment also includes Mark's, a leading source
for casual and industrial wear, and FGL Sports (Sport Chek, Hockey
Experts, Sports Experts, National Sports, Intersport, Pro Hockey Life
and Atmosphere), which offers the best active wear brands. The 1,700
retail and gasoline outlets are supported and strengthened by our
Financial Services division and the tens of thousands of people
employed across the Company. For more information, visit Corp.CanadianTire.ca.
CANADIAN TIRE CORPORATION, LIMITED
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Q4 2014
|
Condensed Consolidated Balance Sheets (Unaudited)
|
|
|
|
|
|
|
|
|
|
|
As at
|
|
|
|
|
|
|
|
|
|
|
(C$ in millions)
|
|
|
|
|
January 3, 2015
|
|
|
|
December 28, 2013
|
|
|
|
|
|
|
|
|
|
|
(Note 1)
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
662.1
|
|
|
$
|
643.2
|
|
Short-term investments
|
|
|
|
|
289.1
|
|
|
|
416.6
|
|
Trade and other receivables
|
|
|
|
|
880.2
|
|
|
|
758.5
|
|
Loans receivable
|
|
|
|
|
4,905.5
|
|
|
|
4,569.7
|
|
Merchandise inventories
|
|
|
|
|
1,623.8
|
|
|
|
1,481.0
|
|
Income taxes recoverable
|
|
|
|
|
31.9
|
|
|
|
31.5
|
|
Prepaid expenses and deposits
|
|
|
|
|
104.5
|
|
|
|
68.2
|
|
Assets classified as held for sale
|
|
|
|
|
13.1
|
|
|
|
9.1
|
|
Total current assets
|
|
|
|
|
8,510.2
|
|
|
|
7,977.8
|
|
Long-term receivables and other assets
|
|
|
|
|
684.2
|
|
|
|
686.0
|
|
Long-term investments
|
|
|
|
|
176.0
|
|
|
|
134.7
|
|
Goodwill and intangible assets
|
|
|
|
|
1,251.7
|
|
|
|
1,185.5
|
|
Investment property
|
|
|
|
|
148.6
|
|
|
|
93.5
|
|
Property and equipment
|
|
|
|
|
3,743.1
|
|
|
|
3,516.1
|
|
Deferred income taxes
|
|
|
|
|
39.4
|
|
|
|
36.4
|
|
Total assets
|
|
|
|
$
|
14,553.2
|
|
|
$
|
13,630.0
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
|
Bank indebtedness
|
|
|
|
$
|
14.3
|
|
|
$
|
69.0
|
|
Deposits
|
|
|
|
|
950.7
|
|
|
|
1,178.4
|
|
Trade and other payables
|
|
|
|
|
1,961.2
|
|
|
|
1,817.4
|
|
Provisions
|
|
|
|
|
206.0
|
|
|
|
196.1
|
|
Short-term borrowings
|
|
|
|
|
199.8
|
|
|
|
120.3
|
|
Loans payable
|
|
|
|
|
604.4
|
|
|
|
611.2
|
|
Income taxes payable
|
|
|
|
|
54.9
|
|
|
|
57.5
|
|
Current portion of long-term debt
|
|
|
|
|
587.5
|
|
|
|
272.2
|
|
Total current liabilities
|
|
|
|
|
4,578.8
|
|
|
|
4,322.1
|
|
Long-term provisions
|
|
|
|
|
44.1
|
|
|
|
38.2
|
|
Long-term debt
|
|
|
|
|
2,131.6
|
|
|
|
2,339.1
|
|
Long-term deposits
|
|
|
|
|
1,286.2
|
|
|
|
1,152.0
|
|
Deferred income taxes
|
|
|
|
|
93.9
|
|
|
|
100.4
|
|
Other long-term liabilities
|
|
|
|
|
787.8
|
|
|
|
228.3
|
|
Total liabilities
|
|
|
|
|
8,922.4
|
|
|
|
8,180.1
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY
|
|
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
|
|
695.5
|
|
|
|
712.9
|
|
Contributed surplus
|
|
|
|
|
2.9
|
|
|
|
2.4
|
|
Accumulated other comprehensive income
|
|
|
|
|
82.0
|
|
|
|
47.4
|
|
Retained earnings
|
|
|
|
|
4,075.1
|
|
|
|
4,404.6
|
|
Equity attributable to owners of Canadian Tire Corporation
|
|
|
|
|
4,855.5
|
|
|
|
5,167.3
|
|
Non-controlling interests
|
|
|
|
|
775.3
|
|
|
|
282.6
|
|
Total equity
|
|
|
|
|
5,630.8
|
|
|
|
5,449.9
|
|
Total liabilities and equity
|
|
|
|
$
|
14,553.2
|
|
|
$
|
13,630.0
|
Note 1
Certain of the prior period's figures have been restated to correspond
with a change in the Company's accounting policy related to share
repurchases, which resulted in the financial statements providing more
reliable and relevant information. Under the new policy, share
repurchases are charged to share capital at the average cost per share
outstanding and the excess between the repurchase price and the average
cost is first allocated to contributed surplus, with any remainder
allocated to retained earnings. Previously, share repurchases were
recorded as a reduction to share capital. At December 28, 2013, share
capital increased $125.9 million (December 29, 2012 - increased $30.5
million), contributed surplus decreased $3.8 million (December 29, 2012
- decreased $2.9 million), and retained earnings decreased $122.1
million (December 29, 2012 - decreased $27.6 million).
|
| |
|
Condensed Consolidated Statements of Income (Unaudited)
|
|
|
|
|
|
14 weeks ended
|
|
|
13 weeks ended
|
|
|
53 weeks ended
|
|
|
52 weeks ended
|
|
(C$ in millions, except per share amounts)
|
|
|
|
January 3, 2015
|
|
|
December 28, 2013
|
|
|
January 3, 2015
|
|
|
December 28, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
$
|
3,653.8
|
|
$
|
3,328.7
|
|
$
|
12,462.9
|
|
$
|
11,785.6
|
|
Cost of producing revenue
|
|
|
|
(2,440.6)
|
|
|
(2,246.2)
|
|
|
(8,416.9)
|
|
|
(8,063.3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin
|
|
|
|
1,213.2
|
|
|
1,082.5
|
|
|
4,046.0
|
|
|
3,722.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income
|
|
|
|
(5.6)
|
|
|
(6.2)
|
|
|
11.0
|
|
|
(3.0)
|
|
Selling, general and administrative expenses
|
|
|
|
(873.8)
|
|
|
(785.0)
|
|
|
(3,052.9)
|
|
|
(2,828.9)
|
|
Net finance costs
|
|
|
|
(23.4)
|
|
|
(25.9)
|
|
|
(108.9)
|
|
|
(105.8)
|
|
Change in fair value of redeemable financial instrument
|
|
|
|
(17.0)
|
|
|
-
|
|
|
(17.0)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
293.4
|
|
|
265.4
|
|
|
878.2
|
|
|
784.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
(86.8)
|
|
|
(74.4)
|
|
|
(238.9)
|
|
|
(220.2)
|
|
Net income
|
|
|
$
|
206.6
|
|
$
|
191.0
|
|
$
|
639.3
|
|
$
|
564.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Owners of Canadian Tire Corporation
|
|
|
$
|
191.3
|
|
$
|
187.8
|
|
$
|
604.0
|
|
$
|
561.2
|
| |
Non-controlling interests
|
|
|
|
15.3
|
|
|
3.2
|
|
|
35.3
|
|
|
3.2
|
|
|
|
|
$
|
206.6
|
|
$
|
191.0
|
|
$
|
639.3
|
|
$
|
564.4
|
Basic earnings per share attributable to owners of
Canadian Tire Corporation
|
|
|
$
|
2.46
|
|
$
|
2.34
|
|
$
|
7.65
|
|
$
|
6.96
|
Diluted earnings per share attributable to owners of
Canadian Tire Corporation
|
|
|
$
|
2.44
|
|
$
|
2.32
|
|
$
|
7.59
|
|
$
|
6.91
|
Weighted average number of Common and Class A
Non-Voting Shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Basic
|
|
|
|
77,830,243
|
|
|
80,234,988
|
|
|
78,960,025
|
|
|
80,652,472
|
| |
Diluted
|
|
|
|
78,464,673
|
|
|
80,927,348
|
|
|
79,612,957
|
|
|
81,180,863
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
|
|
|
|
|
|
14 weeks ended
|
|
|
13 weeks ended
|
|
|
53 weeks ended
|
|
|
52 weeks ended
|
|
(C$ in millions)
|
|
|
|
January 3, 2015
|
|
|
December 28, 2013
|
|
|
January 3, 2015
|
|
|
December 28, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
|
206.6
|
|
$
|
191.0
|
|
$
|
639.3
|
|
$
|
564.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items that may be reclassified subsequently to net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Gains, net of tax of $23.9 and $40.4 (2013 - $16.5 and $30.0)
|
|
|
|
66.3
|
|
|
45.1
|
|
|
114.0
|
|
|
83.1
|
| |
Reclassification of gains to non-financial assets, net of tax of $7.8
and $27.2 (2013 - $4.0 and $12.2)
|
|
|
|
(21.7)
|
|
|
(11.0)
|
|
|
(77.5)
|
|
|
(33.7)
|
| |
Reclassification of gains to income, net of tax of $0.1 and $0.6
(2013 - $0.1 and $0.1)
|
|
|
|
(0.2)
|
|
|
(0.2)
|
|
|
(1.5)
|
|
|
(0.4)
|
|
Available-for-sale financial assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Gains (losses), net of tax of $0.1 and $0.1 (2013 - $nil and $nil)
|
|
|
|
0.1
|
|
|
-
|
|
|
(0.1)
|
|
|
0.1
|
| |
Reclassification of gains to income, net of tax of $nil and $nil
(2013 - $nil and $nil)
|
|
|
|
(0.1)
|
|
|
-
|
|
|
(0.1)
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item that will not be reclassified subsequently to net income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Actuarial (losses) gains, net of tax of $4.7 and $4.7 (2013 - $3.6
and $3.6)
|
|
|
|
(13.2)
|
|
|
10.0
|
|
|
(13.2)
|
|
|
10.0
|
|
Other comprehensive income
|
|
|
|
31.2
|
|
|
43.9
|
|
|
21.6
|
|
|
59.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Owners of Canadian Tire Corporation
|
|
|
$
|
31.1
|
|
$
|
43.9
|
|
$
|
21.5
|
|
$
|
59.1
|
| |
Non-controlling interests
|
|
|
|
0.1
|
|
|
-
|
|
|
0.1
|
|
|
-
|
|
|
|
|
$
|
31.2
|
|
$
|
43.9
|
|
$
|
21.6
|
|
$
|
59.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
|
|
$
|
237.8
|
|
$
|
234.9
|
|
$
|
660.9
|
|
$
|
623.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Owners of Canadian Tire Corporation
|
|
|
$
|
222.4
|
|
$
|
231.7
|
|
$
|
625.5
|
|
$
|
620.3
|
| |
Non-controlling interests
|
|
|
|
15.4
|
|
|
3.2
|
|
|
35.4
|
|
|
3.2
|
|
|
|
|
$
|
237.8
|
|
$
|
234.9
|
|
$
|
660.9
|
|
$
|
623.5
|
|
Condensed Consolidated Statements of Cash Flows (Unaudited)
|
|
|
|
|
|
14 weeks ended
|
|
|
13 weeks ended
|
|
|
53 weeks ended
|
|
|
52 weeks ended
|
|
(C$ in millions)
|
|
|
|
January 3, 2015
|
|
|
December 28, 2013
|
|
|
January 3, 2015
|
|
|
December 28, 2013
|
|
|
|
|
|
|
|
|
(Note 2)
|
|
|
|
|
|
(Note 2)
|
|
Cash generated from (used for):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net income
|
|
|
$
|
206.6
|
|
$
|
191.0
|
|
$
|
639.3
|
|
$
|
564.4
|
| |
Adjustments for:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Depreciation of property and equipment and investment property
|
|
|
|
76.8
|
|
|
66.8
|
|
|
279.2
|
|
|
253.8
|
| |
|
Income tax expense
|
|
|
|
86.8
|
|
|
74.4
|
|
|
238.9
|
|
|
220.2
|
| |
|
Net finance costs
|
|
|
|
23.4
|
|
|
25.9
|
|
|
108.9
|
|
|
105.8
|
| |
|
Amortization of intangible assets
|
|
|
|
26.9
|
|
|
22.9
|
|
|
93.1
|
|
|
91.5
|
| |
|
Change in fair value of redeemable financial instrument
|
|
|
|
17.0
|
|
|
-
|
|
|
17.0
|
|
|
-
|
| |
|
Changes in fair value of derivative instruments
|
|
|
|
(14.4)
|
|
|
(25.3)
|
|
|
(33.9)
|
|
|
(37.9)
|
| |
|
Loss (gain) on disposal of property and equipment, investment
property and assets held for sale
|
|
|
|
3.2
|
|
|
1.4
|
|
|
(9.0)
|
|
|
(10.3)
|
| |
|
Interest paid
|
|
|
|
(31.8)
|
|
|
(39.3)
|
|
|
(122.0)
|
|
|
(126.5)
|
| |
|
Interest received
|
|
|
|
2.5
|
|
|
2.9
|
|
|
10.4
|
|
|
12.0
|
| |
|
Income taxes paid
|
|
|
|
(42.0)
|
|
|
(48.0)
|
|
|
(256.5)
|
|
|
(191.2)
|
| |
|
Other
|
|
|
|
8.5
|
|
|
5.3
|
|
|
25.3
|
|
|
15.1
|
|
|
|
|
|
363.5
|
|
|
278.0
|
|
|
990.7
|
|
|
896.9
|
| |
Change in operating working capital and other
|
|
|
|
327.4
|
|
|
188.9
|
|
|
(83.5)
|
|
|
270.2
|
| |
Change in loans receivable
|
|
|
|
(207.0)
|
|
|
(149.1)
|
|
|
(332.4)
|
|
|
(274.1)
|
|
Cash generated from operating activities
|
|
|
|
483.9
|
|
|
317.8
|
|
|
574.8
|
|
|
893.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Additions to property and equipment and investment property
|
|
|
|
(164.8)
|
|
|
(111.1)
|
|
|
(538.6)
|
|
|
(404.3)
|
| |
Additions to intangible assets
|
|
|
|
(59.1)
|
|
|
(56.5)
|
|
|
(150.1)
|
|
|
(105.9)
|
|
|
|
|
|
(223.9)
|
|
|
(167.6)
|
|
|
(688.7)
|
|
|
(510.2)
|
| |
Acquisition of short-term investments
|
|
|
|
(226.8)
|
|
|
(269.7)
|
|
|
(431.6)
|
|
|
(339.2)
|
| |
Proceeds from the maturity and disposition of short-term
investments
|
|
|
|
134.9
|
|
|
57.3
|
|
|
665.3
|
|
|
193.8
|
| |
Acquisition of long-term investments
|
|
|
|
(101.4)
|
|
|
(25.1)
|
|
|
(155.8)
|
|
|
(55.1)
|
| |
Proceeds from the disposition of long-term investments
|
|
|
|
-
|
|
|
-
|
|
|
7.6
|
|
|
0.4
|
| |
Proceeds on disposition of property and equipment, investment
property and assets held for sale
|
|
|
|
-
|
|
|
1.4
|
|
|
21.3
|
|
|
20.6
|
| |
Long-term receivables and other assets
|
|
|
|
23.1
|
|
|
12.8
|
|
|
3.1
|
|
|
(21.5)
|
| |
Acquisition of Pro Hockey Life Sporting Goods Inc.
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(58.0)
|
| |
Other
|
|
|
|
5.7
|
|
|
(12.3)
|
|
|
(10.7)
|
|
|
(17.2)
|
|
|
|
|
|
(164.5)
|
|
|
(235.6)
|
|
|
99.2
|
|
|
(276.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash used for investing activities
|
|
|
|
(388.4)
|
|
|
(403.2)
|
|
|
(589.5)
|
|
|
(786.4)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Dividends paid
|
|
|
|
(37.2)
|
|
|
(26.5)
|
|
|
(141.4)
|
|
|
(107.2)
|
| |
Distributions paid to non-controlling interests
|
|
|
|
(4.6)
|
|
|
(3.6)
|
|
|
(19.5)
|
|
|
(3.6)
|
|
|
|
|
|
(41.8)
|
|
|
(30.1)
|
|
|
(160.9)
|
|
|
(110.8)
|
| |
Net (repayment) issuance of short-term borrowings
|
|
|
|
(213.7)
|
|
|
0.3
|
|
|
79.4
|
|
|
(20.4)
|
| |
Issuance of loans payable
|
|
|
|
50.0
|
|
|
50.7
|
|
|
235.6
|
|
|
235.9
|
| |
Repayment of loans payable
|
|
|
|
(56.3)
|
|
|
(70.3)
|
|
|
(242.4)
|
|
|
(248.5)
|
| |
Issuance of long-term debt
|
|
|
|
6.1
|
|
|
265.0
|
|
|
563.7
|
|
|
265.8
|
| |
Repayment of long-term debt and finance lease liabilities
|
|
|
|
(6.8)
|
|
|
(3.9)
|
|
|
(474.0)
|
|
|
(659.2)
|
| |
Payment of transaction costs related to long-term debt
|
|
|
|
(1.0)
|
|
|
(1.3)
|
|
|
(2.0)
|
|
|
(1.3)
|
|
|
|
|
|
(221.7)
|
|
|
240.5
|
|
|
160.3
|
|
|
(427.7)
|
| |
Proceeds on sale of ownership interests in the Financial Services
business
|
|
|
|
500.0
|
|
|
-
|
|
|
500.0
|
|
|
-
|
| |
Transaction costs on sale of ownership interests in the Financial
Services business
|
|
|
|
(23.2)
|
|
|
-
|
|
|
(23.2)
|
|
|
-
|
| |
Issuance of trust units to non-controlling interests
|
|
|
|
-
|
|
|
303.0
|
|
|
-
|
|
|
303.0
|
| |
Trust unit issue costs
|
|
|
|
-
|
|
|
(24.1)
|
|
|
-
|
|
|
(24.1)
|
| |
Repurchase of share capital
|
|
|
|
(87.4)
|
|
|
(35.8)
|
|
|
(290.6)
|
|
|
(105.9)
|
|
|
|
|
|
389.4
|
|
|
243.1
|
|
|
186.2
|
|
|
173.0
|
| |
Change in deposits
|
|
|
|
40.5
|
|
|
(135.1)
|
|
|
(97.0)
|
|
|
(96.2)
|
|
Cash generated from (used for) financing activities
|
|
|
|
166.4
|
|
|
318.4
|
|
|
88.6
|
|
|
(461.7)
|
|
Cash generated (used) in the period
|
|
|
|
261.9
|
|
|
233.0
|
|
|
73.9
|
|
|
(355.1)
|
Cash and cash equivalents, net of bank indebtedness,
beginning of period
|
|
|
|
386.0
|
|
|
341.0
|
|
|
574.2
|
|
|
929.5
|
|
Effect of exchange rate fluctuations on cash held
|
|
|
|
(0.1)
|
|
|
0.2
|
|
|
(0.3)
|
|
|
(0.2)
|
Cash and cash equivalents, net of bank indebtedness,
end of period
|
|
|
$
|
647.8
|
|
$
|
574.2
|
|
$
|
647.8
|
|
$
|
574.2
|
Note 2
Certain of the prior year figures within the consolidated statement of
cash flows have been reclassified to align with management's view of
the Company's operations.
|
SOURCE CANADIAN TIRE CORPORATION, LIMITED
PDF available at: http://stream1.newswire.ca/media/2015/02/26/20150226_C9811_DOC_EN_43393.pdf
