MONTREAL, Sept. 14,
2023 /CNW/ - Reitmans (Canada) Limited ("RCL" or the "Company")
(TSXV: RET) (TSXV: RET-A), Canada's leading specialty apparel retailer,
announces its results for the second quarter of fiscal 2024. Unless
otherwise indicated, all comparisons of results for the 13 weeks
ended July 29, 2023 ("second quarter
of 2024") are against results for the 13 weeks ended July 30, 2022 ("second quarter of 2023") and
all comparisons of results for the 26 weeks ended July 29, 2023 ("year to date fiscal 2024") are
against results for the 26 weeks ended July
30, 2022 ("year to date fiscal 2023"). All amounts are in
Canadian dollars.
The Company performed well in the second quarter of 2024,
although below the results of the second quarter of 2023, which
benefitted from exceptional market conditions due to the easing of
pandemic-related restrictions. The current economic environment
necessitated higher promotional activity as Canadian consumers
cautiously managed their discretionary spending budgets.
Results were also negatively impacted by unfavourable foreign
exchange on U.S. dollar denominated merchandise purchases.
"We saw positive customer response in our second quarter with
traffic and conversion remaining relatively stable in our stores
despite the challenging economic environment. Additionally, RCL has
a strong balance sheet and cashflows from operations in the quarter
contributed to the strength in financial position." said
Andrea Limbardi, President and Chief
Executive Officer of RCL. "We are continuing to invest in our
strategic initiatives to build on our strong market position and we
remain disciplined to continue to deliver value and choice to our
customers whether shopping in our stores or online. I look forward
to working with our talented team in delivering on our long-term
results and value to shareholders."
Second Quarter of 2024
- Net sales decreased to $213.2
million from $229.2
million
- Net earnings decreased to $13.4
million from $37.3
million
Year to date fiscal 2024
- Net sales decreased to $378.3
million from $383.1
million
- Net earnings decreased to $9.5
million from $35.6
million
Select Financial Information
(in millions of
dollars, except for gross profit %)
|
For the second
quarter of
|
|
Year to date
fiscal
|
2024
|
2023
|
Change
|
|
2024
|
2023
|
Change
|
|
Net Sales
|
213.2
|
229.2
|
(7.0) %
|
|
378.3
|
383.1
|
(1.3) %
|
|
Gross Profit
|
118.3
|
138.7
|
(14.7) %
|
|
206.4
|
222.7
|
(7.3) %
|
|
Gross Profit
%
|
55.5 %
|
60.5 %
|
-500 bps
|
|
54.6 %
|
58.1 %
|
-350 bps
|
|
Selling, distribution
and administrative expenses2
|
99.4
|
100.7
|
(1.3) %
|
|
191.1
|
185.1
|
3.2 %
|
|
Net earnings
|
13.4
|
37.3
|
(64.1) %
|
|
9.5
|
35.6
|
(73.3) %
|
|
Adjusted
EBITDA1
|
19.2
|
39.6
|
(51.5) %
|
|
17.9
|
42.7
|
(58.1) %
|
|
Adjusted
ROA1
|
18.0
|
37.8
|
(52.4) %
|
|
14.4
|
36.8
|
(60.9) %
|
|
|
1 This is a
Non-GAAP Financial Measure. See "Non-GAAP Financial Measures &
Supplementary Financial Measures" for reconciliations of these
measures.
|
2 Includes
$0.9 million of pension curtailment gain for the second quarter of
2024 and for the year to date fiscal 2024. Includes $0.2 million
recovery of restructuring costs for the second quarter of 2023 and
$0.4 million of restructuring costs for the year to date fiscal
2023.
|
13 weeks ended July 29, 2023
Net sales for the second quarter of 2024 decreased by
$16.0 million, or 7.0%, to
$213.2 million. Comparable
sales1, which include e-commerce net sales, decreased
7.0% during the second quarter of 2024. The decrease in comparable
sales was primarily due to lower average transaction values and
higher promotional activity. In addition, we believe that
comparatively higher interest rates and inflation overall compared
to the corresponding period last year negatively impacted consumer
spending during the second quarter of 2024.
Gross profit for the second quarter of 2024 decreased
$20.4 million to $118.3 million as compared with $138.7 million for the second quarter of 2023.
Gross profit as a percentage of net sales for the second quarter of
2024 decreased to 55.5% from 60.5% for the second quarter of 2023.
The decrease in gross profit and as a percentage of net sales is
primarily attributable to higher markdown and promotional activity
combined with an unfavorable foreign exchange impact of
approximately $4.8 million on U.S.
dollar denominated purchases included in cost of goods sold,
partially offset by lower supply chain costs in the second quarter
of 2024 as global shipping industry disruptions were prevalent in
the second quarter of 2023.
Net earnings for the second quarter of 2024 were $13.4 million ($0.27 basic and diluted earnings per share) as
compared with net earnings of $37.3
million ($0.76 basic and
diluted earnings per share) for the second quarter of 2023. The
decrease in net earnings of $23.9
million is primarily attributable the decrease in gross
profit.
Adjusted results from operating activities ("Adjusted ROA") for
the second quarter of 2024 was $18.0
million as compared with $37.8
million for the second quarter of 2023. The decrease of
$19.8 million is primarily
attributable to a decrease in gross profit.
Adjusted EBITDA for the second quarter of 2024 was $19.2 million as compared to $39.6 million for the second quarter of 2023. The
decrease of $20.4 million is
primarily attributable to a decrease in gross profit.
26 weeks ended July 29,
2023
Net sales for the year to date fiscal 2024 decreased by
$4.8 million, or 1.3%, to
$378.3 million. Comparable sales,
which include e-commerce net sales, decreased 1.6% during the
year to date fiscal 2024. The decrease in comparable sales was
primarily due to lower average transaction values and higher
promotional activity. In addition, we believe that comparatively
higher interest rates and inflation overall compared to the
corresponding period last year negatively impacted consumer
spending during the year to date fiscal 2024.
Gross profit for the year to date fiscal 2024 decreased
$16.3 million to $206.4 million as compared with $222.7 million for the year to date fiscal 2023.
Gross profit as a percentage of sales for the year to date fiscal
2024 decreased to 54.6% from 58.1% for the year to date fiscal
2023. The decrease both in gross profit and as a percentage of
sales is primarily attributable to higher markdowns and promotional
activity in the year to date fiscal 2024 combined with an
unfavourable foreign exchange impact of approximately $8.2 million on U.S. dollar denominated purchases
included in cost of goods sold, partially offset by lower supply
chain costs in the year to date fiscal 2024 as global shipping
industry disruptions were prevalent in the year to date fiscal
2023.
Net earnings for the year to date fiscal 2024 was $9.5 million ($0.20
basic and $0.19 diluted
earnings per share) as compared with $35.6
million ($0.73 basic and
diluted earnings per share) for the year to date fiscal 2023. The
decrease in net earnings of $26.1
million is primarily attributable to the decrease in gross
profit, the increase in operating costs and the increase in income
tax expense.
Adjusted ROA for the year to date fiscal 2024 was $14.4 million as compared to $36.8 million for the year to date fiscal 2023.
The decrease of $22.4 million is
primarily attributable to the decrease in gross profit and the
increase in operating costs, as noted above.
Adjusted EBITDA for the year to date fiscal 2024 was
$17.9 million as compared to
$42.7 million for the year to date
fiscal 2023. The decrease of $24.8
million is primarily attributable to the decrease in gross
profit and the increase in operating costs, as noted above.
About Reitmans (Canada)
Limited
The Company is a leading women's specialty apparel retailer with
retail outlets throughout Canada. As at July 29, 2023, the Company operated 405 stores
consisting of 235 Reitmans, 90 Penningtons and 80 RW&CO.
1NON-GAAP Financial Measures
& Supplementary Financial Measures
This press announcement makes reference to certain non-GAAP
measures. These measures are not recognized measures under IFRS and
do not have a standardized meaning prescribed by IFRS. They are
therefore unlikely to be comparable to similar measures presented
by other companies. Rather, these measures are provided as
additional information to complement IFRS measures by providing
further understanding of the Company's results of operations from
management's perspective. Accordingly, these measures should not be
considered in isolation nor as a substitute for the Company's
analysis of its financial information reported under IFRS.
NON-GAAP Financial Measures
This press announcement discusses the following non-GAAP
financial measures: adjusted earnings before interest, taxes,
depreciation and amortization ("Adjusted EBITDA"), and adjusted
results from operating activities ("Adjusted ROA"). This press
announcement also indicates Adjusted EBITDA as a percentage of net
sales and is considered a non-GAAP financial ratio. Net sales
represent the sale of merchandise less discounts and returns. The
intent of presenting Adjusted EBITDA and Adjusted ROA is to provide
additional useful information to investors and analysts. Adjusted
EBITDA is currently defined as net earnings before income tax
expense/recovery, interest income, interest expense, loss on
foreign currency translation differences reclassified to net
earnings, pension curtailment gain, depreciation, amortization, net
impairment of non-financial assets, adjusted for the impact of
certain items, including a deduction of interest expense and
depreciation relating to leases accounted for under IFRS 16,
Leases, Federal subsidies and restructuring costs and
recoveries. Management believes that Adjusted EBITDA is an
important indicator of the Company's ability to generate liquidity
through operating cash flow to fund working capital needs and fund
capital expenditures and uses this metric for this purpose.
Management believes that Adjusted EBITDA as a percentage of net
sales indicates how much liquidity is generated for each dollar of
net sales. The exclusion of interest income and expenses, other
than interest expense related to lease liabilities as explained
hereafter, eliminates the impact on earnings derived from
non-operational activities. The exclusion of depreciation,
amortization and net impairment charges, other than depreciation
related to right-of-use assets as explained hereafter, eliminates
the non-cash impact, and the exclusion of restructuring items,
Federal subsidies, loss on foreign currency translation
differences reclassified to net earnings and pension curtailment
gain presents the results of the on-going business. Under IFRS 16,
Leases, the characteristics of some leases result in lease
payments being recognized in net earnings in the period in which
the performance or use occurs while other leases are recorded as
right-of-use assets with a corresponding lease liability
recognized, which results in depreciation of those assets and
interest expense from those liabilities. Management is presenting
its Adjusted EBITDA to reflect the payments of its store and
equipment lease obligations on a consistent basis. As such, the
initial add-back of depreciation of right-of-use assets and
interest on lease obligations are removed from the calculation of
Adjusted EDITDA, as this better reflects the operational cash flow
impact of its leases.
Adjusted ROA is defined as results from operating activities
excluding Federal subsidies, restructuring
recoveries/costs and pension curtailment gain. Management
believes that Adjusted ROA provides a more relevant indicator in
assessing current operational performance. The exclusion of
restructuring items, pension curtailment gain and Federal subsidies
presents the on-going operational performance of the business.
Reconciliation of NON-IFRS Measures
The tables below provide a reconciliation of net earnings to
Adjusted EBITDA and results from operating activities to Adjusted
ROA:
|
For the second
quarter of
|
Year to date
fiscal
|
|
2024
|
2023
|
2024
|
2023
|
Net
earnings
|
$
13.4
|
$ 37.3
|
$
9.5
|
$ 35.6
|
Depreciation,
amortization and net impairment losses on property and equipment, and intangible
assets
|
3.4
|
3.1
|
7.0
|
8.2
|
Depreciation on
right-of-use assets
|
8.1
|
7.3
|
15.9
|
13.1
|
Interest
income
|
(1.3)
|
(0.2)
|
(2.2)
|
(0.2)
|
Interest expense on
lease liabilities
|
1.7
|
1.3
|
3.3
|
2.3
|
Interest expense on
revolving credit facility
|
-
|
0.1
|
-
|
0.4
|
Income tax expense
(recovery)
|
4.6
|
(0.5)
|
3.5
|
(0.5)
|
Loss on foreign
currency translation differences reclassified to net
earnings
|
-
|
-
|
1.0
|
-
|
Pension curtailment
gain
|
(0.9)
|
-
|
(0.9)
|
-
|
Rent impact from IFRS
16, Leases1
|
(9.8)
|
(8.6)
|
(19.2)
|
(15.4)
|
Federal
subsidies
|
-
|
-
|
-
|
(1.2)
|
Restructuring
(recoveries) costs, net
|
-
|
(0.2)
|
-
|
0.4
|
Adjusted
EBITDA
|
$
19.2
|
$ 39.6
|
$
17.9
|
$ 42.7
|
Adjusted EBITDA
as % of Sales
|
9.0 %
|
17.3 %
|
4.7 %
|
11.1 %
|
|
1 Rent
Impact from IFRS 16, Leases is comprised as
follows;
|
|
For the second
quarter of
|
|
Year to date
fiscal
|
|
2024
|
2023
|
|
2024
|
2023
|
Depreciation on
right-of-use assets
|
$
8.1
|
$
7.3
|
|
$
15.9
|
$ 13.1
|
Interest expense on
lease liabilities
|
1.7
|
1.3
|
|
3.3
|
2.3
|
Rent impact from
IFRS 16, Leases
|
$
9.8
|
$
8.6
|
|
$
19.2
|
$ 15.4
|
|
|
|
|
|
For the second
quarter of
|
|
Year to date
fiscal
|
|
2024
|
2023
|
|
2024
|
2023
|
Results from
operating activities
|
$
18.9
|
$ 38.0
|
|
$
15.3
|
$ 37.6
|
Pension curtailment
gain
|
(0.9)
|
-
|
|
(0.9)
|
-
|
Federal
subsidies
|
-
|
-
|
|
-
|
(1.2)
|
Restructuring
(recoveries) costs, net
|
-
|
(0.2)
|
|
-
|
0.4
|
Adjusted
ROA
|
$
18.0
|
$ 37.8
|
|
$
14.4
|
$ 36.8
|
Supplementary Financial Measures
The Company uses a key performance indicator ("KPI"), comparable
sales, to assess store performance and sales growth. The Company
engages in an omnichannel approach in connecting with its customers
by appealing to their shopping habits through either online or
store channels. This approach allows customers to shop online
for home delivery or to pick up in store, purchase in any of our
store locations or ship to home from another store when the
products are unavailable in a particular store. Due to
customer cross-channel behavior, the Company reports a single
comparable sales metric, inclusive of store and e-commerce
channels. Comparable sales are defined as net sales generated by
stores that have been continuously open during both of the periods
being compared and include e-commerce net sales. The comparable
sales metric compares the same calendar days for each period.
Although this KPI is expressed as a ratio, it is a supplementary
financial measure that does not have a standardized meaning
prescribed by IFRS and may not be comparable to similar measures
used by other companies. Management uses comparable sales in
evaluating the performance of stores and online net sales and
considers it useful in helping to determine what portion of new net
sales has come from sales growth and what portion can be attributed
to the opening of new stores. Comparable sales is a measure widely
used amongst retailers and is considered useful information for
both investors and analysts. Comparable sales should not be
considered in isolation or used in substitute for measures of
performance prepared in accordance with IFRS.
Forward-Looking Statements
All of the statements contained herein, other than statements of
fact that are independently verifiable at the date hereof, are
forward-looking statements. Such statements, based as they are on
the current expectations of management, inherently involve numerous
risks and uncertainties, known and unknown, many of which are
beyond the Company's control, including statements on the Company's
financial position and operations, and are based on several
assumptions which give rise to the possibility that actual results
could differ materially from the Company's expectations expressed
in or implied by such forward-looking statements and that the
objectives, plans, strategic priorities and business outlook may
not be achieved. Consequently, the Company cannot guarantee
that any forward-looking statement will materialize, or if any of
them do, what benefits the Company will derive from them.
Forward-looking statements are provided in this press announcement
for the purpose of giving information about management's current
expectations and plans as of the date of this press announcement,
and allowing investors and others to get a better understanding of
the Company's operating environment. However, readers are cautioned
that it may not be appropriate to use such forward-looking
statements for any other purpose. Forward-looking statements are
based upon the Company's current estimates, beliefs and
assumptions, which are based on management's perception of
historical trends, current conditions and currently expected future
developments, as well as other factors it believes, are appropriate
in the circumstances.
This press announcement contains forward-looking statements
about the Company's objectives, plans, goals, expectations,
aspirations, strategies, financial condition, results of
operations, cash flows, performance, prospects, opportunities and
legal and regulatory matters. Specific forward-looking statements
in this press announcement include, but are not limited to,
statements with respect to the Company's belief in its strategies
and its brands and their capacity to generate long-term profitable
growth, future liquidity, planned capital expenditures, amount of
pension plan contributions, status and impact of systems
implementation, the ability of the Company to successfully
implement its strategic initiatives and cost reduction and
productivity improvement initiatives as well as the impact of such
initiatives. These specific forward-looking statements are
contained throughout the Company's Management Discussion &
Analysis ("MD&A") including those listed in the "Operating Risk
Management" and "Financial Risk Management" sections of the
MD&A. Forward-looking statements are typically identified by
words such as "expect", "anticipate", "believe", "foresee",
"could", "estimate", "goal", "intend", "plan", "seek", "strive",
"will", "may" and "should" and similar expressions, as they relate
to the Company and its management.
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. Please refer to the
"Forward-Looking Statements" section of the Company's MD&A for
the second quarter of 2024.
This is not an exhaustive list of the factors that may affect
the Company's forward-looking statements. Other risks and
uncertainties not presently known to the Company or that the
Company presently believes are not material could also cause actual
results or events to differ materially from those expressed in its
forward-looking statements. Additional risks and uncertainties are
discussed in the Company's materials filed with the Canadian
securities regulatory authorities from time to time. The reader
should not place undue reliance on any forward-looking statements
included herein. These statements speak only as of the date made
and the Company is under no obligation and disavows any intention
to update or revise such statements as a result of any event,
circumstances or otherwise, except to the extent required under
applicable securities law.
The Company's complete financial statements including notes and
Management's Discussion and Analysis for the second quarter of 2024
are available online at www.sedarplus.ca.
Montreal, September 14, 2023
Andrea Limbardi
President and Chief Executive Officer
Telephone:
(514) 384-1140
Corporate Website:
www.reitmanscanadalimited.com
REITMANS (CANADA)
LIMITED
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF EARNINGS
(Unaudited)
(in thousands of
Canadian dollars except per share amounts)
|
|
|
For the 13 weeks
ended
|
For the 26 weeks
ended
|
|
|
|
July 29,
2023
|
July 30,
2022
|
July 29,
2023
|
July 30,
2022
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
213,245
|
$ 229,222
|
$
378,263
|
$ 383,081
|
|
Cost of goods
sold
|
|
94,934
|
90,549
|
171,851
|
160,445
|
|
Gross profit
|
|
118,311
|
138,673
|
206,412
|
222,636
|
|
Selling and
distribution expenses
|
|
87,300
|
88,207
|
167,569
|
161,464
|
|
Administrative
expenses
|
|
12,153
|
12,702
|
23,561
|
23,184
|
|
Restructuring
|
|
-
|
(213)
|
-
|
407
|
|
Results from operating
activities
|
|
18,858
|
37,977
|
15,282
|
37,581
|
|
|
|
|
|
|
|
|
Finance
income
|
|
1,245
|
147
|
2,166
|
227
|
|
Finance
costs
|
|
(2,165)
|
(1,357)
|
(4,424)
|
(2,718)
|
|
Earnings before income
taxes
|
|
17,938
|
36,767
|
13,024
|
35,090
|
|
|
|
|
|
|
|
|
Income tax (expense)
recovery
|
|
(4,553)
|
552
|
(3,479)
|
512
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
13,385
|
$
37,319
|
$
9,545
|
$
35,602
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic
|
|
$
0.27
|
$
0.76
|
$
0.20
|
$
0.73
|
|
Diluted
|
|
0.27
|
0.76
|
0.19
|
0.73
|
|
REITMANS (CANADA)
LIMITED
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE
INCOME
(Unaudited)
(in thousands of
Canadian dollars)
|
|
For the 13 weeks
ended
|
For the 26 weeks
ended
|
|
|
July 29,
2023
|
July 30,
2022
|
July 29,
2023
|
July 30,
2022
|
|
|
|
|
|
|
Net earnings
|
|
$
13,385
|
$
37,319
|
$
9,545
|
$
35,602
|
Other comprehensive
income (loss)
|
|
|
|
|
|
Items that are or may
be reclassified subsequently
to net earnings:
|
|
|
|
|
|
Cash flow hedges (net
of tax of $98 for the 13
and 26 weeks ended July 29, 2023)
|
|
273
|
-
|
273
|
-
|
Loss on foreign
currency translation differences
reclassified to net earnings
|
|
-
|
-
|
1,044
|
-
|
Foreign currency
translation differences
|
|
-
|
(11)
|
-
|
(18)
|
|
|
|
|
|
|
Items that will not be
reclassified to net earnings:
|
|
|
|
|
|
Net actuarial (loss)
gain on defined benefit plan
(net of tax of $22 and $324 for the 13 and 26
weeks ended July 29, 2023, respectively; net
of tax of $838 for the 13 and 26 weeks ended
July 30, 2022)
|
|
(60)
|
(1,040)
|
898
|
(129)
|
|
|
|
|
|
|
Total other
comprehensive income (loss)
|
|
213
|
(1,051)
|
2,215
|
(147)
|
|
|
|
|
|
|
Total comprehensive
income
|
|
$
13,598
|
$
36,268
|
$
11,760
|
$
35,455
|
|
|
|
|
|
|
|
|
REITMANS (CANADA)
LIMITED
CONDENSED
CONSOLIDATED INTERIM BALANCE
SHEETS
(Unaudited)
(in thousands of
Canadian dollars)
|
|
July 29,
2023
|
July 30,
2022
|
January 28,
2023
|
|
ASSETS
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
Cash
|
$
96,681
|
$
38,173
|
$
103,004
|
|
Restricted
cash
|
-
|
2,765
|
2,808
|
|
Trade and other receivables
|
3,562
|
4,947
|
3,241
|
|
Derivative
financial asset
|
371
|
-
|
-
|
|
Inventories
|
148,814
|
153,750
|
142,302
|
|
Prepaid expenses and other assets
|
17,287
|
31,215
|
14,502
|
|
Total Current Assets
|
266,715
|
230,850
|
265,857
|
|
|
|
|
|
|
NON-CURRENT
ASSETS
|
|
|
|
|
Property and equipment
|
62,031
|
61,735
|
63,833
|
|
Intangible assets
|
1,891
|
3,469
|
2,638
|
|
Right-of-use assets
|
90,881
|
71,533
|
79,894
|
|
Pension asset
|
2,118
|
664
|
-
|
|
Deferred income taxes
|
28,646
|
186
|
32,308
|
|
Total Non-Current Assets
|
185,567
|
137,587
|
178,673
|
|
|
|
|
|
|
TOTAL
ASSETS
|
$
452,282
|
$
368,437
|
$
444,530
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
Trade and other payables
|
$
66,280
|
$
57,098
|
$
81,087
|
|
Deferred
revenue
|
12,705
|
11,961
|
14,100
|
|
Income
taxes payable
|
666
|
816
|
1,018
|
|
Current
portion of lease liabilities
|
27,022
|
27,299
|
26,741
|
|
Total Current Liabilities
|
106,673
|
97,174
|
122,946
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
|
Lease
liabilities
|
72,005
|
51,790
|
60,758
|
|
Total Non-Current Liabilities
|
72,005
|
51,790
|
60,758
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
Share capital
|
28,292
|
27,406
|
27,406
|
|
Contributed surplus
|
11,003
|
10,485
|
10,871
|
|
Retained earnings
|
234,036
|
182,453
|
223,593
|
|
Accumulated other comprehensive income (loss)
|
273
|
(871)
|
(1,044)
|
|
Total Shareholders' Equity
|
273,604
|
219,473
|
260,826
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND
SHAREHOLDERS' EQUITY
|
$
452,282
|
$
368,437
|
$
444,530
|
|
|
|
|
|
REITMANS (CANADA)
LIMITED
CONDENSED
CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS'
EQUITY
(Unaudited)
(in thousands of
Canadian dollars)
|
|
|
Share
Capital
|
Contributed
Surplus
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
Balance as at
January 29, 2023
|
|
$ 27,406
|
$
10,871
|
$
223,593
|
$
(1,044)
|
$
260,826
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
-
|
-
|
9,545
|
-
|
9,545
|
|
Total other
comprehensive income
|
|
-
|
-
|
898
|
1,317
|
2,215
|
|
Total comprehensive
income for the period
|
|
-
|
-
|
10,443
|
1,317
|
11,760
|
|
|
|
|
|
|
|
|
|
Cash consideration on
exercise of share options
|
|
643
|
-
|
-
|
-
|
643
|
|
Ascribed value credited
to share capital from exercise of share options
|
|
243
|
(243)
|
-
|
-
|
-
|
|
Share-based
compensation costs
|
|
-
|
375
|
-
|
-
|
375
|
|
Total contributions
by owners of the Company
|
|
886
|
132
|
-
|
-
|
1,018
|
|
|
|
|
|
|
|
|
|
Balance as at July
29, 2023
|
|
$ 28,292
|
$
11,003
|
$
234,036
|
$
273
|
$
273,604
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
January 30, 2022
|
|
$ 27,406
|
$
10,295
|
$
146,980
|
$
(853)
|
$
183,828
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
-
|
-
|
35,602
|
-
|
35,602
|
|
Total other
comprehensive loss
|
|
-
|
-
|
(129)
|
(18)
|
(147)
|
|
Total comprehensive
income (loss) for the period
|
|
-
|
-
|
35,473
|
(18)
|
35,455
|
|
|
|
|
|
|
|
|
|
Share-based
compensation costs
|
|
-
|
190
|
-
|
-
|
190
|
|
Total contributions
by owners of the Company
|
|
-
|
190
|
-
|
-
|
190
|
|
|
|
|
|
|
|
|
|
Balance as at July
30, 2022
|
|
$ 27,406
|
$
10,485
|
$
182,453
|
$
(871)
|
$
219,473
|
|
|
|
|
|
|
|
|
|
REITMANS (CANADA) LIMITED
CONDENSED CONSOLIDATED
INTERIM STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands of
Canadian dollars)
|
|
|
For the 13 weeks
ended
|
For the 26 weeks
ended
|
|
July 29,
2023
|
July 30,
2022
|
July 29,
2023
|
July 30,
2022
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
Net
earnings
|
|
$
13,385
|
$
37,319
|
$
9,545
|
$
35,602
|
Adjustments
for:
|
|
|
|
|
|
Depreciation,
amortization and net impairment losses on property and
equipment and intangible assets
|
|
3,405
|
3,130
|
6,980
|
8,210
|
Depreciation on
right-of-use assets
|
|
8,145
|
7,282
|
15,919
|
13,093
|
Share-based
compensation costs
|
|
66
|
190
|
375
|
190
|
Foreign exchange loss
(gain)
|
|
1,533
|
1,262
|
1,225
|
(585)
|
Loss on foreign
currency translation differences reclassified to
net earnings
|
|
-
|
-
|
1,044
|
-
|
Interest on lease
liabilities
|
|
1,683
|
1,258
|
3,269
|
2,273
|
Interest on revolving
credit
|
|
-
|
99
|
-
|
445
|
Interest
income
|
|
(1,245)
|
(121)
|
(2,166)
|
(155)
|
Income tax expense
(recovery)
|
|
4,553
|
(552)
|
3,479
|
(512)
|
|
|
31,525
|
49,867
|
39,670
|
58,561
|
Changes in:
|
|
|
|
|
|
Trade and other
receivables
|
|
426
|
-
|
(240)
|
2,666
|
Inventories
|
|
(9,761)
|
(16,245)
|
(6,512)
|
(34,778)
|
Prepaid expenses and
other assets
|
|
(1,121)
|
5,463
|
(5,184)
|
11,375
|
Trade and other
payables
|
|
15,444
|
3,843
|
(11,325)
|
24,074
|
Pension
asset
|
|
(909)
|
(449)
|
(895)
|
144
|
Deferred
revenue
|
|
482
|
(189)
|
(1,395)
|
(1,529)
|
Cash from operating
activities
|
|
36,086
|
42,290
|
14,119
|
60,513
|
Interest
paid
|
|
-
|
(165)
|
-
|
(481)
|
Interest
received
|
|
1,114
|
97
|
2,085
|
148
|
Income taxes
paid
|
|
-
|
-
|
(592)
|
(46)
|
Net cash flows from
operating activities
|
|
37,200
|
42,222
|
15,612
|
60,134
|
|
|
|
|
|
|
CASH FLOWS USED IN
INVESTING ACTIVITIES
|
|
|
|
|
|
Additions to property
and equipment and intangible assets
|
|
(2,054)
|
(774)
|
(5,516)
|
(3,250)
|
Cash flows used in
investing activities
|
|
(2,054)
|
(774)
|
(5,516)
|
(3,250)
|
|
|
|
|
|
|
CASH FLOWS USED IN
FINANCING ACTIVITIES
|
|
|
|
|
|
Restricted
cash
|
|
2,838
|
(6)
|
2,808
|
(8)
|
Net repayment of
revolving credit facility
|
|
-
|
(34,439)
|
-
|
(29,634)
|
Payment of lease
liabilities
|
|
(9,765)
|
(7,714)
|
(18,638)
|
(15,078)
|
Proceeds from issuance
of share capital
|
|
643
|
-
|
643
|
-
|
Cash flows used in
financing activities
|
|
(6,284)
|
(42,159)
|
(15,187)
|
(44,720)
|
|
|
|
|
|
|
FOREIGN EXCHANGE (LOSS)
GAIN ON CASH HELD IN FOREIGN CURRENCY
|
|
(1,575)
|
(1,326)
|
(1,232)
|
507
|
|
|
|
|
|
|
NET INCREASE (DECREASE)
IN CASH
|
|
27,287
|
(2,037)
|
(6,323)
|
12,671
|
|
|
|
|
|
|
CASH, BEGINNING OF THE
PERIOD
|
|
69,394
|
40,210
|
103,004
|
25,502
|
|
|
|
|
|
|
CASH, END OF THE
PERIOD
|
|
$
96,681
|
$
38,173
|
$
96,681
|
$
38,173
|
|
|
|
|
|
|
|
SOURCE Reitmans (Canada)
Limited