VANCOUVER, Jan. 10, 2018 /CNW/ - Aritzia Inc. ("Aritzia"
or the "Company") (TSX: ATZ), an innovative design house of exclusive fashion brands, today announced financial results for the
third quarter of fiscal 2018.
"In the third quarter, we delivered our thirteenth consecutive quarter of positive comparable sales growth. Our strong
revenue and adjusted EBITDA performance is a result of our diligent focus on executing against our long-term growth strategy. We
believe our measured approach to eCommerce and store growth ensures thoughtful decision-making today to grow revenue, propel our
brand, and invest in infrastructure to drive long-term value creation. We remain competitively positioned due to our
vertically-integrated sourcing model and our focus on offering beautiful, high-quality products at an attainable price point with
exceptional customer service," said Brian Hill, Aritzia Founder and Chief Executive Officer.
"As we look ahead, we will continue to execute on our successful strategy by enhancing our product supply chain, developing
beautiful, high-quality products, capitalizing on premiere real estate locations, and growing our eCommerce business and
omni-channel capabilities. We are excited about the opportunities ahead and believe we are well positioned to meet or exceed our
long-term growth goals."
Unless otherwise indicated, all amounts are expressed in Canadian dollars. Certain metrics, including those expressed on an
adjusted or comparable basis, are non-IFRS measures. See "Non-IFRS Measures including Retail Industry Metrics" and "Selected
Consolidated Financial Information" further below.
Highlights for the Third Quarter
- Net revenue increased by 9.6% to $204.4 million from $186.5
million in Q3 last year. The weakening of the U.S. dollar year-over-year in the quarter negatively impacted net revenue
by approximately 160 basis points, or $3.0 million
- Comparable sales growth was 6.3%, following 15.1% growth in Q3 last year
- Gross profit margin was 44.8%, compared to 44.1% in Q3 last year. This was primarily driven by continued improvement in
product costs and the positive impact from the weakening of the U.S. dollar year-over-year in the quarter
- Adjusted EBITDA increased by 10.0% to $50.0 million from $45.4
million in Q3 last year
- Net income increased to $28.1 million, compared to a net loss of $8.1
million in Q3 last year
- Adjusted Net Income increased by 11.4% to $30.6 million, or $0.26 per diluted share (treasury stock method(1)), from $27.5
million or $0.23 per diluted share (treasury stock method(2)), in Q3 last
year
- The Company opened one new store (Babaton Pacific Centre in Vancouver) and expanded or
relocated three stores (Eaton Centre and Scarborough Town Centre in Greater Toronto, and
Bellevue Square in Seattle) during the quarter
Third Quarter Results
All comparative figures below are for the 13-week period ended November 26, 2017, compared to
the 13-week period ended November 27, 2016.
Net revenue increased by 9.6% to $204.4 million from $186.5
million in the third quarter last year. The net revenue increase was primarily driven by the addition of seven new store
openings and five expanded or repositioned stores since the third quarter of fiscal 2017, as well as comparable sales growth of
6.3%, resulting from continued momentum in the Company's eCommerce business. The weakening of the U.S.dollar year-over-year in
the quarter negatively impacted net revenue by approximately 160 basis points, or $3.0 million.
Gross profit increased by 11.3% to $91.5 million, or 44.8% of net revenue, compared to
$82.3 million, or 44.1% of net revenue, in the third quarter last year. This was primarily due to
the benefit of ongoing product supply chain initiatives, as well as the positive impact from the weakening of the U.S. dollar
year-over-year in the quarter, partially offset by straight-line rent expense from our new Vancouver distribution centre and a flagship store under construction of $1.0
million in the aggregate during the quarter. We will continue to incur rent expense for our new distribution centre
until its planned opening in the fall of 2018, which as expected, will temporarily inflate our reported cost of goods sold.
Selling, general and administrative ("SG&A") expenses decreased by 1.6% to $47.7
million compared to $48.5 million in the third quarter last year. The third quarter of
last year included $3.1 million of costs related to the Company's IPO. Excluding these IPO-related
costs, SG&A was $45.3 million in the third quarter last year. This increase in normalized
SG&A dollars during the quarter was primarily due to variable selling expenses driven by higher sales volume, as well as
investments in information technology and talent. SG&A expenses for the quarter were 23.3% of net revenue, compared to a
normalized 24.3% in the third quarter last year after excluding IPO-related costs.
Other income, net was $2.0 million compared to $3.1 million
in the third quarter last year. Other income, net this quarter primarily relates to unrealized operational foreign exchange gains
of $0.8 million and unrealized foreign exchange gains on U.S. dollar forward contracts of
$1.9 million, offset by realized operational foreign exchange losses of $0.1
million and realized foreign exchange losses on U.S. dollar forward contracts of $0.8
million.
Adjusted EBITDA increased by 10.0% to $50.0 million, or 24.4% of net revenue, compared to
$45.4 million, or 24.4% of net revenue, in the third quarter last year. Adjusted EBITDA in the
quarter excludes stock-based compensation expense of $3.9 million and unrealized foreign exchange
gains on U.S. dollar forward contracts of $1.9 million. Adjusted EBITDA for the third quarter last
year excludes stock-based compensation expense of $4.0 million, IPO-related costs of $3.1 million, and unrealized foreign exchange gains on U.S. dollar forward contracts of $1.1 million. The increase in Adjusted EBITDA during the quarter was primarily driven by the factors described
above.
Included in Adjusted EBITDA is the aforementioned straight-line rent expense from the new distribution centre and a flagship
store under construction of $1.0 million in the aggregate during the quarter.
Stock-based compensation expense was $3.9 million compared to $4.0
million in the third quarter last year. This quarter's stock-based compensation expense consists of $1.6 million in expenses related to the accounting for options under the legacy option plan and $2.3 million in expenses primarily related to the accounting of options under the new option plan.
Net income for the quarter was $28.1 million, compared to a net loss of $8.1 million in the third quarter last year which was primarily due to the non-cash income tax reversal of
$28.3 million during the third quarter last year relating to the modification of the accounting
treatment of the Company's legacy option plan from a liability to equity-settled plan as of September 30,
2016.
Adjusted Net Income increased by 11.4% to $30.6 million, or $0.26 per diluted share (treasury stock method(1)), compared to Adjusted Net Income of $27.5 million, or $0.23 per diluted share (treasury stock method(2)),
in the third quarter last year. Adjusted Net Income excludes the impact of stock-based compensation expense, unrealized foreign
exchange losses/gains on U.S. dollar forward contracts and other non-recurring items, net of related tax effects.
Included in Adjusted Net Income is the aforementioned straight-line rent expense from the new distribution centre and a
flagship store under construction of $1.0 million, net of related tax effects, in the aggregate
during the quarter.
Cash on Hand was $105.2 million at the end of the quarter compared to $59.4 million at the end of the third quarter last year. The increase was primarily driven by the factors
discussed above. The Company is considering the optimal use for its excess cash balance, including evaluating a normal course
issuer bid (NCIB) in conjunction with refinancing its debt.
Year-to-Date Results
All comparative figures below are for the 39-week period ended November 26, 2017, compared to
the 39-week period ended November 27, 2016.
Net revenue increased by 11.2% to $523.5 million from $470.8
million in the prior year. The net revenue increase was primarily driven by comparable sales growth of 6.7%, resulting
from continued momentum in the Company's eCommerce business, and the revenue from new, expanded and repositioned stores.
Gross profit increased by 11.6% to $212.2 million, or 40.5% of net revenue, compared to
$190.2 million, or 40.4% of net revenue, in the prior year. This was primarily due to the benefit
of ongoing product supply chain initiatives, as well as the positive impact from the weakening of the U.S. dollar year-over-year
in the quarter, partially offset by straight-line rent expense from our new Vancouver
distribution centre and flagship stores under construction of $4.2 million in the aggregate during
the period. We will continue to incur rent expense for our new distribution centre until its planned opening in the fall of 2018,
which as expected, will temporarily inflate our reported cost of goods sold.
SG&A expenses increased by 3.0% to $133.1 million compared to $129.3 million in the prior year. The prior year included $7.7 million of costs
related to the Company's IPO. Excluding these IPO-related costs, SG&A was $121.6 million in the
prior year. SG&A expenses for the period were 25.4% of net revenue, compared to a normalized 25.8% in the prior year after
excluding IPO-related costs.
Other expenses, net were $2.2 million compared to other income, net of $3.0 million in the prior year. Other expenses, net this year primarily relates to realized operational foreign
exchange losses of $0.6 million, realized foreign exchange losses on U.S. dollar forward contracts
of $1.5 million, unrealized operational foreign exchange losses of $0.1
million and unrealized foreign exchange losses on U.S. dollar forward contracts of $0.5
million, partially offset by interest income of $0.5 million.
Adjusted EBITDA increased by 10.8% to $94.6 million, or 18.1% of net revenue, as compared
to $85.4 million, or 18.1% of net revenue, in the prior year. The increase in Adjusted EBITDA was
primarily driven by the factors described above.
Included in Adjusted EBITDA is the aforementioned straight-line rent expense from the new distribution centre and flagship
stores under construction of $4.2 million in the aggregate during the period.
Stock-based compensation expense was $11.6 million, consisting of $4.5 million in expenses related to the accounting for options under the legacy option plan and $7.1 million in expenses primarily related to the accounting of options under the new option plan. In the prior
year, stock-based compensation was $98.6 million primarily due to the accounting of time-based and
performance-based options under the legacy option plan in conjunction with the IPO.
Net income was $41.2 million, compared to a net loss of $67.6
million in the prior year which was primarily due to the aforementioned stock-based compensation expense in the prior
year.
Adjusted Net Income increased by 15.3% to $53.4 million, or $0.46 per diluted share (treasury stock method(1)), compared to Adjusted Net Income of $46.3 million, or $0.39 per diluted share (treasury stock method(2)),
in the prior year.
Included in Adjusted Net Income is the aforementioned straight-line rent expense from the new distribution centre and flagship
stores under construction of $4.2 million, net of related tax effects, in the aggregate during the
period.
Subsequent Event
During the third quarter, Brian Hill, Founder, Chairman and CEO (through a holding investment
company controlled by Mr. Hill) purchased an aggregate of 290,700 subordinate voting shares, increasing his equity ownership in
the Company to 22.32%, consistent with his previously disclosed intention to maintain a long-term target equity ownership of
between 20% to 25%.
On January 9, 2018, Mr. Hill voluntarily agreed to cancel an aggregate of 671,889 stock options
granted to him in connection with the Company's IPO for no consideration in order to provide the Company with greater flexibility
within the option pool from which the Company may further incentivize its current management. Mr. Hill remains fully committed to
leading the Aritzia team for the foreseeable future and wants both the team and shareholders to benefit from the Company's long
term value creation. The cancellation of these options results in accelerated vesting for accounting purposes, and therefore
gives rise to expense recognition for the remaining unexpensed grant date fair value of $2.3
million. This amount will be recognized in stock-based compensation expense at the time of cancellation in the fourth
quarter.
Outlook
The sales momentum in the third quarter has extended into the fourth quarter as a result of a strong start to the holiday and
fall/winter sale season.
The Company has already repositioned its San Francisco store to a flagship location and
expanded its Aritzia location in Edmonton's Kingsway Mall in the fourth quarter. In
addition, the Company currently plans to open two new stores in the fourth quarter. This includes a new Aritzia store in
Los Angeles at South Coast Plaza and a Babaton store in Toronto's Square One.
The Company expects that its sourcing initiatives underway will continue to benefit gross margin as the Company obtains better
product costs. This margin improvement is expected to be offset in the near-term by the investments the Company is making in its
distribution centre expansion. The Company continues to believe that for fiscal 2018, its gross profit margin will remain
essentially flat with what was achieved in fiscal 2017. Likewise, the Company believes its SG&A expenses will increase
alongside its net revenue.
The Company anticipates its total capital expenditure in fiscal 2018 to be between $60 and
$65 million.
Overall, the Company continues to make progress on its strategic initiatives, and remains on track to meet or exceed its
stated 2021 performance targets.
For additional information, please see the "Outlook" section of the Management's Discussion and Analysis for the third quarter
ended November 26, 2017.
Conference Call
A conference call to discuss second quarter results is scheduled for Wednesday, January 10,
2018, at 1:30 p.m. PDT / 4:30 p.m. EDT. A replay will be
available shortly after the conclusion of the call and will remain available until January 25,
2017. To access the replay, please dial 1-855-669-9658 and use replay access code 1973. A live and archived webcast will
be available and will remain on Aritzia's investor relations website at investors.aritzia.com for 30 days.
|
_____________________
|
|
(1)
|
Adjusted Net Income per diluted share for Q3 2018 and YTD 2018 is a
non-IFRS measure and is calculated by dividing Adjusted Net Income by the total number of outstanding shares plus the
total number of dilutive share options that would be included under the treasury stock method as at November 26, 2017 (or
116,851,187 diluted shares). For reconciliation of diluted shares to a reported measure, please see "Selected
Consolidated Financial Information".
|
|
(2)
|
Adjusted Net Income per diluted share for Q3 2017 and YTD 2017 is a
non-IFRS measure and is calculated by dividing Adjusted Net Income by the total number of outstanding shares plus the
total number of dilutive share options that would be included under the treasury stock method as at November 27, 2016 (or
117,869,746 diluted shares). For reconciliation of diluted shares to a reported measure, please see "Selected
Consolidated Financial Information".
|
About Aritzia
Aritzia is an innovative design house and fashion retailer of exclusive brands. The Company designs apparel and accessories
for its collection of exclusive brands and sells them under the Aritzia banner. The Company's expansive and diverse range of
women's fashion apparel and accessories addresses a broad range of style preferences and lifestyle requirements. Aritzia is well
known and deeply loved by its customers in Canada with growing customer awareness and affinity
in the United States and outside of North America. Aritzia aims
to delight its customers through an aspirational shopping experience and exceptional customer service that extends across its
more than 80 retail stores and eCommerce business, aritzia.com.
Non-IFRS Measures including Retail Industry Metrics
This press release makes reference to certain non-IFRS measures including certain retail industry metrics. These measures are
not recognized measures under IFRS do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be
comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to
complement those IFRS measures by providing further understanding of our results of operations from management's perspective.
Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information
reported under IFRS. We use non-IFRS measures including "EBITDA", "Adjusted EBITDA", "Adjusted Net Income", "Adjusted Net Income
per diluted share", and "gross profit margin". This press release also makes reference to "comparable sales growth", which is a
commonly used operating metric in the retail industry but may be calculated differently compared to other retailers. Beginning Q1
2018, we changed our calculation methodology by applying the prior year's average quarterly exchange rate to both current year
and prior year comparable sales to achieve a consistent basis for comparison. Prior to Q1 2018, comparable sales growth was
calculated using a U.S. dollar to Canadian dollar exchange rate of 1:1. These non-IFRS measures including retail industry
metrics are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our
core business that may not otherwise be apparent when relying solely on IFRS measures. We believe that securities analysts,
investors and other interested parties frequently use non-IFRS measures including retail industry metrics in the evaluation of
issuers. Our management also uses non-IFRS measures including retail industry metrics in order to facilitate operating
performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of
management compensation. Definitions and reconciliations of non-IFRS measures to the relevant reported measures can be found in
our MD&A. Such reconciliations can also be found in this press release under the heading "Selected Consolidated Financial
Information".
Forward-Looking Information
Certain statements made in this press release may constitute forward-looking information under applicable securities laws.
These statements may relate to our future financial outlook and anticipated events or results and include, but are not limited
to, expectations regarding industry trends, overall market growth rates, our growth rates and growth strategies, expectations
regarding our capital expenditures, operations and use of cash on hand and future cash flow, our financial position, financial
results, business plans and strategies, expectations regarding eCommerce growth and omni-channel capabilities, expectations
regarding our sourcing initiatives, expectations regarding new store openings and the expansion and repositioning of existing
stores, expectations regarding our sourcing model, our belief that our business model will enable us to deliver consistent sales
and profitability growth and in turn, increase shareholder value over the long term, and expectations regarding the
implementation of new accounting standards, expectations regarding our ability to meet or exceed our stated 2021 performance
targets and other statements that are not historical facts. Particularly, information regarding our expectations of future
results, targets, performance achievements, prospects or opportunities is forward-looking information. As the context requires,
this may include certain targets as disclosed in the prospectus for our initial public offering, which are based on the factors
and assumptions, and subject to the risks, as set out therein and herein. Often but not always, forward-looking statements can be
identified by the use of forward-looking terminology such as "may" "will", "expect", "believe", "estimate", "plan", "could",
"should", "would", "outlook", "forecast", "anticipate", "foresee", "continue" or the negative of these terms or variations of
them or similar terminology. Forward-looking statements are made current as of the date they are made and are based on applicable
estimates and assumptions made by us at the relevant time in light of our experience and perception of historical trends, current
conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable in the
circumstances. However, we do not undertake to update any such forward-looking information whether as a result of new
information, future events or otherwise, except as required under applicable securities laws in Canada. There can be no assurance that such estimates and assumptions will prove to be correct. Many
factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ
materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors
discussed in the "Risk Factors" section of the Company's annual information form dated May 10, 2017
for the fiscal year ended February 26, 2017 (the "AIF"). A copy of the AIF and the Company's other
publicly filed documents can be accessed under the Company's profile on the System for Electronic Document Analysis and Retrieval
("SEDAR") at www.sedar.com. The Company cautions that the list
of risk factors and uncertainties described in the AIF is not exhaustive and other factors could also adversely affect its
results. Readers are urged to consider the risks, uncertainties and assumptions carefully in evaluating the forward-looking
information and are cautioned not to place undue reliance on such information.
Selected Consolidated Financial Information
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS:
|
|
|
|
|
|
|
(Unaudited, in thousands of Canadian
dollars, unless otherwise noted)
|
Q3 2018
13 weeks
|
Q3 2017
13 weeks
|
YTD 2018
39 weeks
|
YTD 2017
39 weeks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
$
|
204,449
|
100.0%
|
$
|
186,460
|
100.0%
|
$
|
523,463
|
100.0%
|
$
|
470,785
|
100.0%
|
|
Cost of goods sold
|
|
112,911
|
55.2%
|
|
104,187
|
55.9%
|
|
311,257
|
59.5%
|
|
280,630
|
59.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
91,538
|
44.8%
|
|
82,273
|
44.1%
|
|
212,206
|
40.5%
|
|
190,155
|
40.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative
|
|
47,704
|
23.3%
|
|
48,464
|
26.0%
|
|
133,119
|
25.4%
|
|
129,302
|
27.5%
|
|
Stock-based compensation expense
|
|
3,930
|
1.9%
|
|
3,965
|
2.1%
|
|
11,641
|
2.2%
|
|
98,631
|
21.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations
|
|
39,904
|
19.5%
|
|
29,844
|
16.0%
|
|
67,446
|
12.9%
|
|
(37,778)
|
(8.0%)
|
|
Finance expense
|
|
1,255
|
0.6%
|
|
4,558
|
2.4%
|
|
3,903
|
0.7%
|
|
9,116
|
1.9%
|
|
Other (income) expenses, net
|
|
(2,013)
|
(1.0%)
|
|
(3,129)
|
(1.7%)
|
|
2,181
|
0.4%
|
|
(2,951)
|
(0.6%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
40,662
|
19.9%
|
|
28,415
|
15.2%
|
|
61,362
|
11.7%
|
|
(43,943)
|
(9.3%)
|
|
Income tax expense
|
|
12,589
|
6.2%
|
|
36,512
|
19.6%
|
|
20,170
|
3.9%
|
|
23,694
|
5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
28,073
|
13.7%
|
$
|
(8,097)
|
(4.3%)
|
$
|
41,192
|
7.9%
|
$
|
(67,637)
|
(14.4%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Performance Measures:
Year-over-year net revenue growth
|
|
9.6%
|
|
|
20.0%
|
|
|
11.2%
|
|
|
25.5%
|
|
|
Comparable sales growth
|
|
6.3%
|
|
|
15.1%
|
|
|
6.7%
|
|
|
14.8%
|
|
|
Capital expenditures
|
$
|
18,128
|
|
$
|
6,304
|
|
$
|
47,546
|
|
$
|
19,526
|
|
|
Number of stores, end of period
|
|
84
|
|
|
77
|
|
|
84
|
|
|
77
|
|
|
New stores added
|
|
1
|
|
|
2
|
|
|
5
|
|
|
3
|
|
|
Stores expanded or repositioned
|
|
3
|
|
|
2
|
|
|
5
|
|
|
5
|
|
|
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA:
|
|
|
|
|
|
|
(Unaudited, in thousands of Canadian dollars, unless
otherwise noted)
|
Q3 2018
13 weeks
|
Q3 2017
13 weeks
|
YTD 2018
39 weeks
|
YTD 2017
39 weeks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
28,073
|
$
|
(8,097)
|
$
|
41,192
|
$
|
(67,637)
|
|
Depreciation and amortization
|
|
6,029
|
|
6,483
|
|
16,883
|
|
15,767
|
|
Finance expense
|
|
1,255
|
|
4,558
|
|
3,903
|
|
9,116
|
|
Income tax expense
|
|
12,589
|
|
36,512
|
|
20,170
|
|
23,694
|
|
|
|
|
|
|
|
|
|
|
EBITDA
|
|
47,946
|
|
39,456
|
|
82,148
|
|
(19,060)
|
|
|
|
|
|
|
|
|
|
|
Adjustments to EBITDA:
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
3,930
|
|
3,965
|
|
11,641
|
|
98,631
|
|
Unrealized foreign exchange (gain) loss on forward
contracts
|
|
(1,914)
|
|
(1,117)
|
|
465
|
|
(1,911)
|
|
IPO costs
|
|
-
|
|
3,123
|
|
-
|
|
7,723
|
|
Other non-recurring items(1)
|
|
-
|
|
-
|
|
361
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
|
$
|
49,962
|
$
|
45,427
|
$
|
94,615
|
$
|
85,383
|
|
Adjusted EBITDA as a Percentage of Net Revenue
|
|
24.4%
|
|
24.4%
|
|
18.1%
|
|
18.1%
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Net Income (Loss) to Adjusted Net Income:
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
$
|
28,073
|
$
|
(8,097)
|
$
|
41,192
|
$
|
(67,637)
|
|
Adjustments to net income (loss):
|
|
|
|
|
|
|
|
|
|
Stock-based compensation expense
|
|
3,930
|
|
3,965
|
|
11,641
|
|
98,631
|
|
Unrealized foreign exchange (gain) loss on forward
contracts
|
|
(1,914)
|
|
(1,117)
|
|
465
|
|
(1,911)
|
|
IPO costs
|
|
-
|
|
3,123
|
|
-
|
|
7,723
|
|
Refinancing costs related to debt modification at the IPO
|
|
-
|
|
2,867
|
|
-
|
|
2,867
|
|
Other non-recurring items(1)
|
|
-
|
|
-
|
|
361
|
|
-
|
|
Related tax effects
|
|
506
|
|
26,716
|
|
(214)
|
|
6,670
|
|
|
|
|
|
|
|
|
|
|
Adjusted Net Income
|
$
|
30,595
|
$
|
27,457
|
$
|
53,445
|
$
|
46,343
|
|
Adjusted Net Income as a Percentage of Net Revenue
|
|
15.0%
|
|
14.7%
|
|
10.2%
|
|
9.8%
|
|
Adjusted Net Income per Diluted Share (2)(3)
|
$
|
0.26
|
$
|
0.23
|
$
|
0.46
|
$
|
0.39
|
|
Notes:
|
|
(1)
|
Other non-recurring items include separation costs related to a senior
Company executive departure.
|
|
(2)
|
Adjusted Net Income per diluted share for Q3 2018 and YTD 2018 is a
non-IFRS measure and is calculated by dividing Adjusted Net Income by the total number of outstanding shares plus the
total number of dilutive share options that would be included under the treasury stock method as at November 26, 2017 (or
116,851,187 diluted shares). For reconciliation of diluted shares to a reported measure, please see "Selected
Consolidated Financial Information".
|
|
(3)
|
Adjusted Net Income per diluted share for Q3 2017 and YTD 2017 is a
non-IFRS measure and is calculated by dividing Adjusted Net Income by the total number of outstanding shares plus the
total number of dilutive share options that would be included under the treasury stock method as at November 27, 2016 (or
117,869,746 diluted shares). For reconciliation of diluted shares to a reported measure, please see "Selected
Consolidated Financial Information".
|
|
RECONCILIATION OF DILUTED SHARES TO SHARES OUTSTANDING
|
|
(for purposes of Adjusted Net Income per diluted share):
|
|
|
|
|
|
|
(Unaudited)
|
Q3 2018
13 weeks
|
Q3 2017
13 weeks
|
YTD 2018
39 weeks
|
YTD 2017
39 weeks
|
|
|
|
|
|
|
Weighted average number of basic shares outstanding
|
110,680,869
|
105,454,349
|
109,719,289
|
103,845,557
|
|
Adjustment to account for difference in weighted average number of shares
outstanding
|
|
|
|
|
|
and actual number of shares
outstanding
|
557,573
|
1,511,746
|
1,519,153
|
3,120,538
|
|
|
|
|
|
|
Total number of shares outstanding
|
111,238,442
|
106,966,095
|
111,238,442
|
106,966,095
|
|
Dilutive share options under the treasury stock method
|
5,612,745
|
10,903,651
|
5,612,745
|
10,903,651
|
|
|
|
|
|
|
Total number of diluted shares for purposes of Adjusted Net Income per
diluted share
|
116,851,187
|
117,869,746
|
116,851,187
|
117,869,746
|
|
CONDENSED INTERIM CONSOLIDATED CASH FLOWS:
|
|
|
|
|
|
|
|
(Unaudited, in thousands of Canadian dollars)
|
|
Q3 2018
13 weeks
|
Q3 2017
13 weeks
|
YTD 2018
39 weeks
|
YTD 2017
39 weeks
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows:
|
|
|
|
|
|
|
|
|
|
|
Net cash generated from operating activities
|
|
$
|
63,218
|
$
|
60,605
|
$
|
66,549
|
$
|
81,926
|
|
Net cash generated from (used in) financing activities
|
|
|
3,817
|
|
(6,484)
|
|
6,720
|
|
(6,845)
|
|
Net cash used in investing activities
|
|
|
(18,128)
|
|
(6,304)
|
|
(47,546)
|
|
(19,526)
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
110
|
|
275
|
|
(71)
|
|
258
|
|
|
|
|
|
|
|
|
|
|
|
Increase in cash and cash equivalents
|
|
$
|
49,017
|
$
|
48,092
|
$
|
25,652
|
$
|
55,813
|
|
CONDENSED INTERIM CONSOLIDATED STATEMENTS OF FINANCIAL
POSITION:
|
|
|
|
|
|
|
|
(Unaudited, in thousands of Canadian dollars)
|
|
|
As at
November 26, 2017
|
|
As at
February 26, 2017
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
105,179
|
|
$
|
79,527
|
|
Accounts receivable
|
|
|
|
3,655
|
|
|
2,624
|
|
Income taxes recoverable
|
|
|
|
888
|
|
|
-
|
|
Prepaid expenses and other current assets
|
|
|
|
12,788
|
|
|
12,743
|
|
Inventory
|
|
|
|
92,235
|
|
|
74,184
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
|
214,745
|
|
|
169,078
|
|
|
|
|
|
|
|
|
|
Property and equipment
|
|
|
|
126,498
|
|
|
95,695
|
|
|
|
|
|
|
|
|
|
Intangible assets
|
|
|
|
60,017
|
|
|
58,484
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
|
|
151,682
|
|
|
151,682
|
|
|
|
|
|
|
|
|
|
Other assets
|
|
|
|
1,739
|
|
|
2,052
|
|
|
|
|
|
|
|
|
|
Deferred tax assets
|
|
|
|
8,214
|
|
|
9,854
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
$
|
562,895
|
|
$
|
486,845
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
$
|
65,680
|
|
$
|
50,484
|
|
Income taxes payable
|
|
|
|
192
|
|
|
19,222
|
|
Current portion of lease obligations
|
|
|
|
467
|
|
|
766
|
|
Current portion of long-term debt
|
|
|
|
15,300
|
|
|
15,288
|
|
Deferred revenue
|
|
|
|
27,300
|
|
|
15,749
|
|
|
|
|
|
|
|
|
|
Total current liabilities
|
|
|
|
108,939
|
|
|
101,509
|
|
|
|
|
|
|
|
|
|
Other non-current liabilities
|
|
|
|
56,556
|
|
|
47,711
|
|
|
|
|
|
|
|
|
|
Deferred tax liabilities
|
|
|
|
17,240
|
|
|
16,555
|
|
|
|
|
|
|
|
|
|
Lease obligations
|
|
|
|
46
|
|
|
983
|
|
|
|
|
|
|
|
|
|
Long-term debt
|
|
|
|
118,573
|
|
|
118,479
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
301,354
|
|
|
285,237
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
|
|
|
Share capital
|
|
|
|
161,669
|
|
|
131,853
|
|
Contributed surplus
|
|
|
|
77,704
|
|
|
88,612
|
|
Retained earnings (deficit)
|
|
|
|
22,712
|
|
|
(18,480)
|
|
Accumulated other comprehensive loss
|
|
|
|
(544)
|
|
|
(377)
|
|
|
|
|
|
|
|
|
|
Total shareholders' equity
|
|
|
|
261,541
|
|
|
201,608
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
|
|
$
|
562,895
|
|
$
|
486,845
|
SOURCE Aritzia Inc.
View original content: http://www.newswire.ca/en/releases/archive/January2018/10/c1690.html