Fourth Quarter of 2024
- Net revenues were $221.0
million
- Results from operating activities were $0.5 million
- Net earnings were $0.0
million
Fiscal 2024
- Net revenues were $794.7
million
- Results from operating activities were $22.9 million
- Net earnings were $14.8
million
MONTREAL, April 18,
2024 /CNW/ - Reitmans (Canada) Limited ("RCL" or the "Company")
(TSXV: RET) (TSXV: RET-A), Canada's leading specialty apparel retailer,
announces its results for the fourth quarter of fiscal 2024. Unless
otherwise indicated, all comparisons of results for the 14 weeks
ended February 3, 2024 ("fourth
quarter of 2024") are against results for the 13 weeks ended
January 28, 2023 ("fourth quarter of
2023") and all comparisons of results for the 53 weeks ended
February 3, 2024 ("fiscal 2024") are
against the results for the 52 weeks ended January 28, 2023 ("fiscal 2023"). The inclusion
of an extra week occurs every fifth or sixth fiscal year due to the
Company's floating year-end date. All amounts are in Canadian
dollars.
"We are pleased with the results for the fourth quarter of 2024
which capped off a year that saw significant headwinds for the
retail industry with high inflation and high interest rates
negatively impacting consumer shopping behaviour", said
Andrea Limbardi, President and Chief
Executive Officer of RCL. "Results from operating activities for
the fourth quarter of fiscal 2024 and the full fiscal 2024 year
were amongst the best for RCL in a decade, even after excluding the
extra week of fiscal 2024 and an unfavourable foreign exchange
impact. Having come off an exceptional year in fiscal 2023, driven
by post COVID demand, fiscal 2024 was a year adjusting to a new
reality in consumer shopping behaviour. RCL is positioning itself
to accelerate growth through initiatives aimed at delivering
exceptional product at competitive prices across all channels. To
facilitate this growth, modernization in digital technology
including 3D design capabilities, improved handling systems in our
distribution facility and a new point of sale system are but a few
of the improvements being delivered over the next 12 months.
We are confident of the future and remain focused on delivering
long-term value to our shareholders".
Select Financial
Information
(in millions of
dollars,
except for gross profit %)
|
For the
fourth quarter
of
|
For
fiscal
|
2024
|
2023
|
Change
|
2024
|
2023
|
Change
|
Net
revenues2
|
221.0
|
212.9
|
3.8 %
|
794.7
|
803.3
|
(1.1) %
|
Gross profit
|
114.9
|
109.5
|
4.9 %
|
431.0
|
451.4
|
(4.5) %
|
Gross profit
%
|
52.0 %
|
51.4 %
|
60 bps
|
54.2 %
|
56.2 %
|
(200) bps
|
Selling, distribution
and
administrative expenses2
|
114.4
|
113.9
|
0.4 %
|
408.1
|
403.1
|
1.2 %
|
Net earnings
|
0.0
|
27.5
|
(100.0) %
|
14.8
|
77.7
|
(81.0) %
|
Adjusted
EBITDA1
|
1.7
|
(3.7)
|
n/a
|
29.2
|
57.0
|
(48.8) %
|
Adjusted
ROA1
|
0.5
|
(6.3)
|
n/a
|
22.0
|
45.7
|
(51.9) %
|
|
|
|
|
|
|
|
|
1
This is a Non-GAAP Financial Measure. See "Non-GAAP Financial
Measures & Supplementary Financial Measures" for
reconciliations of these measures.
|
2 For the fourth quarter of
2023 and fiscal 2023, shipping revenues of $1.0 and $2.6 million,
respectively, were reclassified from selling, distribution and
administrative expenses to net revenues. See Notes 3 and 23
of the audited consolidated financial statements for the fiscal
2024. In addition, selling, distribution and administrative
expenses includes $0.9 million of pension curtailment gain for
fiscal 2024, $1.9 million of restructuring costs recovery for the
fourth quarter of 2023 and $1.4 million of restructuring costs
recovery for fiscal 2023.
|
14 weeks ended February 3, 2024
Net revenues for the fourth quarter of 2024, which includes an
additional week of net revenue of $10.0
million, increased by $8.1
million, or 3.8%, to $221.0
million compared to the fourth quarter of fiscal 2023.
Comparable sales1, which include e-commerce net sales,
decreased 1.6% during the fourth quarter of 2024. The decrease in
comparable sales was primarily due to lower average transaction
values and higher promotional activity. We believe that
comparatively higher interest rates and inflation overall compared
to the corresponding period last year negatively impacted consumer
spending during the fourth quarter of 2024.
Gross profit for the fourth quarter of 2024 increased
$5.4 million to $114.9 million as compared with $109.5 million for the fourth quarter of 2023.
Gross profit as a percentage of net revenues for the fourth quarter
of 2024 increased to 52.0% from 51.4% for the fourth quarter of
2023. The improvement in gross profit and the increase in gross
profit as a percentage of net revenues was primarily a result of
the impact of inclusion of a 14th week (instead of the
normal 13 weeks) of $5.5 million,
lower supply chain costs in the fourth quarter of 2024 as global
shipping industry disruptions were prevalent in the fourth quarter
of 2023, partially offset by an unfavorable foreign exchange impact
of approximately $2.6 million on U.S.
dollar denominated purchases in the fourth quarter of 2024.
Adjusted results from operating activities ("Adjusted ROA") for
the fourth quarter of 2024 was $0.5
million as compared with $(6.3)
million for the fourth quarter of 2023. The increase of
$6.8 million is primarily
attributable to the increase in gross profit.
The Company had net earnings of nil for the fourth quarter of
2024 ($0.00 basic and diluted
earnings per share) as compared with net earnings of $27.5 million ($0.56 basic and diluted earnings per share) for
the fourth quarter of 2023. The decrease in net earnings of
$27.5 million is primarily
attributable to the recognition of previously unrecognized tax
assets in fiscal 2023, as well as to the increase in operating
costs in fiscal 2024, partially offset by the increase in gross
profit in fiscal 2024.
Adjusted EBITDA for the fourth quarter of 2024 was $1.7 million as compared to $(3.7) million for the fourth quarter of 2023.
The increase of $5.4 million is
primarily attributable to the increase in gross profit.
53 weeks ended February 3, 2024
Net revenues for the fiscal 2024 decreased by $8.6 million, or 1.1%, to $794.7 million, despite an additional week of net
revenues of $10.0 million in fiscal
2024. Comparable sales1, which include e-commerce
net sales, decreased 3.2% during the fiscal 2024. The decrease
in net revenues and comparable sales was primarily due to lower
average transaction values and higher promotional activity. We
believe that comparatively higher interest rates and inflation
overall compared to the corresponding period last year negatively
impacted consumer spending during the fiscal 2024. In fiscal 2023,
following the lifting of pandemic restrictions, net revenues of
$803.3 million were exceptional, as
the Company leveraged pent-up demand for work and social gathering
apparel, and successfully drove compelling marketing campaigns that
led to an increase in store and e-commerce traffic, all with lower
promotional activity.
Gross profit for fiscal 2024 decreased $20.4 million to $431.0
million as compared with $451.4
million for fiscal 2023, despite the inclusion of a
53rd week (instead of the normal 52 weeks) of
$5.5 million. Gross profit as a
percentage of net revenues for fiscal 2024 decreased to 54.2% from
56.2% for fiscal 2023. The decrease both in gross profit and as a
percentage of net revenues is primarily attributable to higher
markdowns and promotional activity in fiscal 2024 combined with an
unfavourable foreign exchange impact of approximately $14.0 million on U.S. dollar denominated
purchases included in cost of goods sold, partially offset by lower
supply chain costs in fiscal 2024.
Adjusted ROA for fiscal 2024 was $22.0
million as compared to $45.7
million for the fiscal 2023. The decrease of $23.7 million is primarily attributable to the
decrease in gross profit and the increase in operating costs.
Net earnings for fiscal 2024 was $14.8
million ($0.30 basic and
diluted earnings per share) as compared with $77.7 million ($1.59 basic and diluted earnings per share) for
fiscal 2023. The decrease in net earnings of $62.9 million is primarily attributable to the
Company's recognition of deferred income taxes in fiscal 2023, the
decrease in gross profit and the increase in operating costs in
fiscal 2024.
Adjusted EBITDA for fiscal 2024 was $29.2
million as compared to $57.0
million for fiscal 2023. The decrease of $27.8 million is primarily attributable to the
decrease in gross profit and the increase in operating costs.
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
revenues and is considered a non-GAAP financial ratio. Net revenues
represent the sale of merchandise less discounts and returns ("net
sales"), and includes shipping fees charged to customers on
e-commerce orders. 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
recoveries/costs. 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
revenues indicates how much liquidity is generated for each dollar
of net revenues. 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 recoveries
/costs, 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 recoveries /costs, 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 fourth
quarter of
|
Year to date
fiscal
|
|
2024
|
2023
|
2024
|
2023
|
Net
earnings
|
$
0.0
|
$ 27.5
|
$
14.8
|
$ 77.7
|
Depreciation,
amortization and net impairment
losses on property and
equipment, and
intangible assets
|
3.9
|
3.9
|
14.2
|
15.6
|
Depreciation on
right-of-use assets
|
9.9
|
7.9
|
34.3
|
28.9
|
Interest expense on
lease liabilities
|
2.4
|
1.3
|
7.6
|
4.9
|
Interest
income
|
(1.9)
|
(1.5)
|
(5.2)
|
(2.0)
|
Interest expense on
revolving credit facility
|
-
|
-
|
-
|
0.4
|
Income tax (recovery)
expense
|
(0.3)
|
(31.7)
|
5.3
|
(32.1)
|
Loss on foreign
currency translation
differences reclassified to net earnings
|
-
|
-
|
1.0
|
-
|
Pension curtailment
gain
|
-
|
-
|
(0.9)
|
-
|
Rent impact from IFRS
16, Leases1
|
(12.3)
|
(9.2)
|
(41.9)
|
(33.8)
|
Federal
subsidies
|
-
|
-
|
-
|
(1.2)
|
Restructuring costs,
net
|
-
|
(1.9)
|
-
|
(1.4)
|
Adjusted
EBITDA
|
$
1.7
|
$
(3.7)
|
$
29.2
|
$ 57.0
|
Adjusted EBITDA
as % of Net Revenues
|
0.8 %
|
(1.7) %
|
3.7 %
|
7.1 %
|
1
Rent Impact from IFRS 16, Leases is comprised as
follows;
|
|
|
For the fourth
quarter of
|
Year to date
fiscal
|
|
2024
|
2023
|
2024
|
2023
|
Depreciation on
right-of-use assets
|
$
9.9
|
$
7.9
|
$
34.3
|
$ 28.9
|
Interest expense on
lease liabilities
|
2.4
|
1.3
|
7.6
|
4.9
|
Rent impact from
IFRS 16, Leases
|
$
12.3
|
$
9.2
|
$
41.9
|
$ 33.8
|
|
|
|
|
For the fourth
quarter of
|
Year to date
fiscal
|
|
2024
|
2023
|
2024
|
2023
|
Results from
operating activities
|
$
0.5
|
$
(4.4)
|
$
22.9
|
$ 48.3
|
Pension curtailment
gain
|
-
|
-
|
(0.9)
|
-
|
Federal
subsidies
|
-
|
-
|
-
|
(1.2)
|
Restructuring costs,
net
|
-
|
(1.9)
|
-
|
(1.4)
|
Adjusted
ROA
|
$
0.5
|
$
(6.3)
|
$
22.0
|
$ 45.7
|
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 and
Financial Risk Management" section 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 fourth 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 fiscal 2024 are available
online at www.sedarplus.ca.
About Reitmans (Canada) Limited
The Company is a leading women's specialty apparel retailer with
retail outlets throughout Canada.
As at February 3, 2024, the Company
operated 393 stores consisting of 226 Reitmans, 86 Penningtons and
81 RW&CO.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Montreal, April 18, 2024
Andrea Limbardi
President and Chief Executive Officer
Telephone:
(514) 384-1140
Corporate Website:
www.reitmanscanadalimited.com
REITMANS (CANADA)
LIMITED
CONSOLIDATED
STATEMENTS OF EARNINGS
(Unaudited)
(in thousands of
Canadian dollars except per share amounts)
|
|
|
For the 14
weeks
ended
February 3,
2024
|
For the 13 weeks
ended
January 28,
2023(1)
|
For the 53 weeks
ended
February 3,
2024
|
For the 52 weeks
ended
January 28,
2023(1)
|
|
|
|
|
|
|
|
|
Net revenues
|
|
$
220,984
|
$ 212,890
|
$
794,688
|
$ 803,273
|
|
Cost of goods
sold
|
|
106,072
|
103,401
|
363,684
|
351,979
|
|
Gross profit
|
|
114,912
|
109,489
|
431,004
|
451,294
|
|
Selling and
distribution expenses
|
|
99,728
|
100,793
|
357,772
|
353,244
|
|
Administrative
expenses
|
|
14,680
|
14,933
|
50,307
|
51,190
|
|
Restructuring
|
|
-
|
(1,860)
|
-
|
(1,380)
|
|
Results from operating
activities
|
|
504
|
(4,377)
|
22,925
|
48,240
|
|
|
|
|
|
|
|
|
Finance
income
|
|
1,872
|
1,562
|
5,820
|
2,713
|
|
Finance
costs
|
|
(2,628)
|
(1,384)
|
(8,606)
|
(5,384)
|
|
(Loss) earnings before
income taxes
|
|
(252)
|
(4,199)
|
20,139
|
45,569
|
|
|
|
|
|
|
|
|
Income tax recovery
(expense)
|
|
239
|
31,653
|
(5,324)
|
32,098
|
|
|
|
|
|
|
|
|
Net (loss)
earnings
|
|
$
(13)
|
$
27,454
|
$
14,815
|
$
77,667
|
|
|
|
|
|
|
|
|
Earnings per
share:
|
|
|
|
|
|
|
Basic
|
|
$
0.00
|
$
0.56
|
$
0.30
|
$
1.59
|
|
Diluted
|
|
0.00
|
0.56
|
0.30
|
1.59
|
|
(1) For 13 and 52 weeks ended
January 28, 2023, shipping revenues of $952 and $2,646,
respectively, were reclassified from selling and distribution
expenses to net revenues. The adjustments had no effect on results
from operating activities or on net earnings.
|
REITMANS (CANADA) LIMITED
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME
(Unaudited)
(in thousands of
Canadian dollars)
|
|
For the 14 weeks
ended
February 3, 2024
|
For the 13 weeks
ended
January 28, 2023
|
For the 53 weeks
ended
February 3, 2024
|
For the 52 weeks
ended
January 28, 2023
|
|
|
|
|
|
Net (loss)
earnings
|
$
(13)
|
$
27,454
|
$
14,815
|
$
77,667
|
Other comprehensive
(loss) income
|
|
|
|
|
Items that are or may be reclassified subsequently to
net earnings:
|
|
|
|
|
Cash flow hedges (net
of tax of $674 for the 14
weeks and $307 for the 53 weeks ended February
3, 2024, respectively)
|
(1,869)
|
-
|
851
|
-
|
Loss on foreign
currency translation differences
reclassified to net earnings
|
-
|
-
|
1,044
|
-
|
Foreign currency
translation differences
|
-
|
97
|
-
|
(191)
|
|
|
|
|
|
Items that will
not be reclassified to net earnings:
|
|
|
|
|
Net actuarial
(loss) gain on defined benefit plan
(net of tax of $166 for the
14 weeks and $94 for
the 53 weeks ended February 3, 2024,
respectively; net of tax of
$450 for the
13 weeks and $504 for the 52 weeks
ended January 28, 2023, respectively)
|
(462)
|
(1,248)
|
260
|
(1,054)
|
|
|
|
|
|
Total other
comprehensive (loss) income
|
(2,331)
|
(1,151)
|
2,155
|
(1,245)
|
|
|
|
|
|
Total comprehensive
(loss) income
|
$
(2,344)
|
$
26,303
|
$
16,970
|
$
76,422
|
REITMANS (CANADA)
LIMITED
CONSOLIDATED BALANCE
SHEETS
As at
February 3, 2024 and January 28,
2023
(Unaudited)
(in thousands of
Canadian dollars)
|
|
2024
|
2023
|
ASSETS
|
|
|
CURRENT
ASSETS
|
|
|
Cash
|
|
$
116,653
|
$
103,004
|
Restricted cash
|
|
-
|
2,808
|
Trade and other receivables
|
|
3,542
|
3,241
|
Derivative financial asset
|
|
1,382
|
-
|
Inventories
|
|
122,025
|
142,302
|
Prepaid expenses and other assets
|
|
16,341
|
14,502
|
Total Current Assets
|
|
259,943
|
265,857
|
|
|
|
|
NON-CURRENT
ASSETS
|
|
|
|
Property and equipment
|
|
69,609
|
63,833
|
Intangible assets
|
|
1,566
|
2,638
|
Right-of-use assets
|
|
131,457
|
79,894
|
Pension asset
|
|
1,149
|
-
|
Deferred income taxes
|
|
27,026
|
32,308
|
Total Non-Current Assets
|
|
230,807
|
178,673
|
|
|
|
|
TOTAL
ASSETS
|
|
$
490,750
|
$
444,530
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
Trade and other payables
|
|
$
61,754
|
$
81,087
|
Deferred
revenue
|
|
11,939
|
14,100
|
Income
taxes payable
|
|
445
|
1,018
|
Current
portion of lease liabilities
|
|
31,329
|
26,741
|
Total Current Liabilities
|
|
105,467
|
122,946
|
|
|
|
|
NON-CURRENT
LIABILITIES
|
|
|
|
Lease
liabilities
|
|
106,265
|
60,758
|
Total Non-Current Liabilities
|
|
106,265
|
60,758
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Share capital
|
|
28,292
|
27,406
|
Contributed surplus
|
|
11,207
|
10,871
|
Retained earnings
|
|
238,668
|
223,593
|
Accumulated other comprehensive income (loss)
|
|
851
|
(1,044)
|
Total Shareholders' Equity
|
|
279,018
|
260,826
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
490,750
|
$
444,530
|
|
|
|
|
|
|
|
|
REITMANS (CANADA)
LIMITED
CONSOLIDATED
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
For the years ended
February 3, 2024 (53 weeks) and January 28, 2023 (52
weeks)
(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
|
|
-
|
-
|
14,815
|
-
|
14,815
|
|
Total other
comprehensive income
|
|
-
|
-
|
260
|
1,895
|
2,155
|
|
Total comprehensive
income for the year
|
|
-
|
-
|
15,075
|
1,895
|
16,970
|
|
|
|
|
|
|
|
|
|
Share options
exercised
|
|
886
|
(243)
|
-
|
-
|
643
|
|
Share-based
compensation costs
|
|
-
|
579
|
-
|
-
|
579
|
|
Total contributions
by owners of the
Company
|
|
886
|
336
|
-
|
-
|
1,222
|
|
|
|
|
|
|
|
|
|
Balance as at
February 3, 2024
|
|
$ 28,292
|
$
11,207
|
$
238,668
|
$
851
|
$
279,018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at January
30, 2022
|
|
$ 27,406
|
$
10,295
|
$
146,980
|
$
(853)
|
$
183,828
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
-
|
-
|
77,667
|
-
|
77,667
|
|
Total other
comprehensive loss
|
|
-
|
-
|
(1,054)
|
(191)
|
(1,245)
|
|
Total comprehensive
income (loss) for the
year
|
|
-
|
-
|
76,613
|
(191)
|
76,422
|
|
|
|
|
|
|
|
|
|
Share-based
compensation costs
|
|
-
|
576
|
-
|
-
|
576
|
|
Total contributions by
owners of the
Company
|
|
-
|
576
|
-
|
-
|
576
|
|
|
|
|
|
|
|
|
|
Balance as at January
28, 2023
|
|
$ 27,406
|
$
10,871
|
$
223,593
|
$
(1,044)
|
$
260,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REITMANS (CANADA)
LIMITED
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands of Canadian dollars)
|
|
For the 14
weeks ended
February 3,
2024
|
For the 13
weeks ended
January 28,
2023
|
For the 53
weeks ended
February 3,
2024
|
For the
52
weeks
ended
January 28,
2023
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net (loss)
earnings
|
|
$
(13)
|
$
27,454
|
$
14,815
|
$
77,667
|
|
Adjustments
for:
|
|
|
|
|
|
|
Depreciation,
amortization and net impairment losses on
property and equipment and intangible
assets
|
|
3,907
|
3,838
|
14,203
|
15,582
|
|
Depreciation on
right-of-use assets
|
|
9,884
|
7,916
|
34,314
|
28,902
|
|
Share-based
compensation costs
|
|
103
|
205
|
579
|
576
|
|
Net change in transfer
of realized gain on cash flow hedges to
inventory
|
|
(80)
|
-
|
(224)
|
-
|
|
Foreign exchange
(gain) loss
|
|
(173)
|
314
|
(1,714)
|
(1,628)
|
|
Loss on foreign
currency translation differences reclassified
to net earnings
|
|
-
|
-
|
1,044
|
-
|
|
Interest on lease
liabilities
|
|
2,401
|
1,384
|
7,562
|
4,939
|
|
Interest on revolving
credit
|
|
-
|
-
|
-
|
445
|
|
Interest
income
|
|
(1,872)
|
(1,464)
|
(5,200)
|
(1,952)
|
|
Income tax (recovery)
expense
|
|
(239)
|
(31,653)
|
5,324
|
(32,098)
|
|
|
|
13,918
|
7,994
|
70,703
|
92,433
|
|
Changes in:
|
|
|
|
|
|
|
Trade and other
receivables
|
|
555
|
728
|
126
|
4,657
|
|
Inventories
|
|
25,880
|
17,439
|
20,277
|
(23,330)
|
|
Prepaid expenses and
other assets
|
|
(502)
|
8,263
|
(1,839)
|
28,088
|
|
Trade and other
payables
|
|
(2,373)
|
14,654
|
(20,539)
|
46,831
|
|
Pension
asset
|
|
108
|
(463)
|
(795)
|
(450)
|
|
Deferred
revenue
|
|
342
|
3,256
|
(2,161)
|
610
|
|
|
|
37,928
|
51,871
|
65,772
|
148,839
|
|
Interest
paid
|
|
-
|
-
|
-
|
(486)
|
|
Interest
received
|
|
1,494
|
1,280
|
4,773
|
1,660
|
|
Income taxes
paid
|
|
(425)
|
-
|
(1,017)
|
(46)
|
|
Net cash flows from
operating activities
|
|
38,997
|
53,151
|
69,528
|
149,967
|
|
|
|
|
|
|
|
|
CASH FLOWS USED IN
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Additions to property
and equipment and intangible assets
|
|
(8,835)
|
(5,018)
|
(17,702)
|
(10,651)
|
|
Cash flows used in
investing activities
|
|
(8,835)
|
(5,018)
|
(17,702)
|
(10,651)
|
|
|
|
|
|
|
|
|
CASH FLOWS USED IN
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Release of restricted
cash
|
|
-
|
(25)
|
2,808
|
(51)
|
|
Net repayment of
revolving credit facility
|
|
-
|
-
|
-
|
(29,634)
|
|
Payment of lease
liabilities
|
|
(14,904)
|
(9,223)
|
(43,352)
|
(33,674)
|
|
Proceeds from issuance
of share capital
|
|
-
|
-
|
643
|
-
|
|
Cash flows used in
financing activities
|
|
(14,904)
|
(9,248)
|
(39,901)
|
(63,359)
|
|
|
|
|
|
|
|
|
FOREIGN EXCHANGE GAIN
(LOSS) ON CASH HELD IN FOREIGN CURRENCY
|
|
120
|
(179)
|
1,724
|
1,545
|
|
|
|
|
|
|
|
|
NET INCREASE IN
CASH
|
|
15,378
|
38,706
|
13,649
|
77,502
|
|
|
|
|
|
|
|
|
CASH, BEGINNING OF THE
PERIOD
|
|
101,275
|
64,298
|
103,004
|
25,502
|
|
|
|
|
|
|
|
|
CASH, END OF THE
PERIOD
|
|
$
116,653
|
$
103,004
|
$
116,653
|
$
103,004
|
|
SOURCE Reitmans (Canada)
Ltd