BRAMPTON, ON, July 25, 2012 /CNW/ - Loblaw Companies Limited
(TSX: L) ("Loblaw" or the "Company") today announced its unaudited
financial results for the second quarter ended June 16, 2012. The Company's second quarter
report will be available in the Investor Centre section of the
Company's website at loblaw.ca and will be filed with SEDAR and
available at sedar.com.
2012 Second Quarter Summary(1)
- Basic net earnings per common share of $0.57, down 18.6% compared to the second quarter
of 2011.
- EBITDA margin(2) of 6.4% compared to 6.9% in the
second quarter of 2011.
- Revenue of $7,375 million, an
increase of 1.3% over the second quarter of 2011.
- Retail sales and same-store sales growth of 1.1% and 0.2%,
respectively, compared to the second quarter of 2011.
"In the second quarter we continued to execute our plan," said
Galen G. Weston, Executive Chairman,
Loblaw Companies Limited. "We are beginning to gain traction on the
top-line, particularly in our core food and drug businesses, as we
continued our disciplined approach to improving our customer
proposition. We remain confident that our ongoing investments in
infrastructure, including the completion of our IT implementation,
will enable efficiencies and expense leverage to drive future
earnings growth. Our outlook for 2012 is unchanged - we continue to
expect full-year net earnings to be down year-over-year."
Consolidated Quarterly Results of
Operations
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For the periods ended June 16,
2012 and
June 18, 2011 (unaudited)
(millions of Canadian dollars except where
otherwise indicated) |
|
2012
(12 weeks) |
|
2011
(12 weeks) |
|
$ Change |
|
% Change |
|
2012
(24 weeks) |
|
2011
(24 weeks) |
|
$ Change |
|
% Change |
| Revenue |
|
$ |
7,375 |
|
$ |
7,278 |
|
$ |
97 |
|
|
1.3% |
|
$ |
14,312 |
|
$ |
14,150 |
|
$ |
162 |
|
|
1.1% |
| Operating income |
|
|
290 |
|
|
345 |
|
|
(55) |
|
|
(15.9%) |
|
|
529 |
|
|
648 |
|
|
(119) |
|
|
(18.4%) |
| Net earnings |
|
|
159 |
|
|
197 |
|
|
(38) |
|
|
(19.3%) |
|
|
285 |
|
|
359 |
|
|
(74) |
|
|
(20.6%) |
| Basic net earnings per common share ($) |
|
|
0.57 |
|
|
0.70 |
|
|
(0.13) |
|
|
(18.6%) |
|
|
1.01 |
|
|
1.28 |
|
|
(0.27) |
|
|
(21.1%) |
| Operating margin |
|
|
3.9% |
|
|
4.7% |
|
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|
|
|
|
3.7% |
|
|
4.6% |
|
|
|
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|
|
| EBITDA(2) |
|
$ |
469 |
|
$ |
504 |
|
$ |
(35) |
|
|
(6.9%) |
|
$ |
878 |
|
$ |
959 |
|
$ |
(81) |
|
|
(8.4%) |
| EBITDA margin(2) |
|
|
6.4% |
|
|
6.9% |
|
|
|
|
|
|
|
|
6.1% |
|
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6.8% |
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(1) |
This News Release contains forward-looking information. See
Forward-Looking Statements in this News Release for a discussion of
material factors that could cause actual results to differ
materially from the conclusions, forecasts and projections herein
and of the material factors and assumptions that were used when
making these statements. This News Release should be read in
conjunction with Loblaw Companies Limited's filings with securities
regulators made from time to time, all of which can be found at
sedar.com and at loblaw.ca. |
| (2) |
See Non-GAAP Financial Measures in this News Release. |
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- The $97 million increase in
revenue compared to the second quarter of 2011 was driven by
increases in both the Company's Retail and Financial Services
operating segments, as described below.
- As previously disclosed, for full-year 2012, the Company
expects that $40 million of
incremental investment in its customer proposition will not be
covered by operations. Of this amount, $15
million was incurred in the second quarter of 2012,
$10 million of which was in gross
profit and $5 million in labour.
Year-to-date, the amount is an estimated $25
million.
- Operating income decreased by $55
million compared to the second quarter of 2011 as a result
of a decrease in Retail operating income of $58 million and an increase in Financial Services
operating income of $3 million.
Operating margin was 3.9% for the second quarter of 2012 compared
to 4.7% in the same quarter in 2011. The $58
million decrease in Retail operating income was mainly
driven by an increase in labour and other operating costs, declines
in gross profit and foreign exchange gains and the notable items as
described below, partially offset by changes in the value of the
Company's investments in its franchise business.
- Consolidated operating income included the following notable
items:
-
- Incremental costs of $20 million
related to investments in information technology ("IT") and supply
chain, including the following charges:
-
- $66 million (2011 - $60 million) related to IT costs;
- $52 million (2011 - $38 million) related to depreciation and
amortization;
- $6 million (2011 - $2 million) related to changes in the
distribution network; and
- $2 million (2011 - $6 million) related to other supply chain
projects costs;
- A $10 million charge (2011 - nil)
related to the transition of certain Ontario conventional stores to the more cost
effective and efficient operating terms under collective agreements
ratified in the third quarter of 2010;
- A $5 million charge (2011
-$15 million) related to the effect
of share-based compensation net of equity forwards; and
- A nil charge (2011 - $15 million)
related to certain prior years' commodity tax matters.
- The decrease in net earnings of $38
million compared to the second quarter of 2011 was primarily
due to the decrease in operating income partially offset by a
decline in the Company's effective income tax rate.
- Basic net earnings per common share were impacted by the
following notable items:
-
- A $0.05 charge related to
incremental investments in IT and supply chain;
- A $0.02 charge (2011 - nil)
related to the transition of certain Ontario conventional stores to the operating
terms under collective agreements ratified in 2010;
- A $0.02 charge (2011 -
$0.04) related to the effect of
share-based compensation net of equity forwards; and
- A nil charge (2011 - $0.04)
related to certain prior years' commodity tax matters.
- In the second quarter of 2012, the Company invested
$233 million in capital
expenditures.
The consolidated quarterly results by reportable operating
segments were as follows:
Retail Results of Operations
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For the periods
ended June 16, 2012 and
June 18, 2011 (unaudited)
(millions of Canadian dollars except where
otherwise indicated) |
|
2012
(12 weeks) |
|
2011
(12 weeks) |
|
$
Change |
|
%
Change |
|
2012
(24 weeks) |
|
2011
(24 weeks) |
|
$
Change |
|
%
Change |
| Sales |
|
$ |
7,236 |
|
$ |
7,157 |
|
$ |
79 |
|
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1.1% |
|
$ |
14,044 |
|
$ |
13,914 |
|
$ |
130 |
|
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0.9% |
| Gross profit |
|
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1,611 |
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1,626 |
|
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(15) |
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(0.9%) |
|
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3,140 |
|
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3,180 |
|
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(40) |
|
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(1.3%) |
| Operating income |
|
|
275 |
|
|
333 |
|
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(58) |
|
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(17.4%) |
|
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500 |
|
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618 |
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(118) |
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(19.1%) |
| Same-store sales growth (decline) |
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0.2% |
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(0.4%) |
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(0.3%) |
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(0.3%) |
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| Gross profit percentage |
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22.3% |
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22.7% |
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22.4% |
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22.9% |
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| Operating margin |
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3.8% |
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4.7% |
|
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3.6% |
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4.4% |
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- In the second quarter of 2012, the increase of $79 million, or 1.1%, in Retail sales over the
same period in the prior year was impacted by the following
factors:
-
- Same-store sales growth was 0.2% (2011 - 0.4% decline);
- Sales growth in food was moderate;
- Sales growth in drugstore was modest;
- Gas bar sales declined marginally;
- Sales in general merchandise, excluding apparel, declined
moderately;
- Sales in apparel were flat;
- The Company experienced modest average quarterly internal food
price inflation during the second quarter of 2012 and moderate
average quarterly food price inflation during the second quarter of
2011, lower than the average quarterly national food price
inflation of 2.5% (2011 - 4.0%) as measured by "The Consumer Price
Index for Food Purchased from Stores" ("CPI"). CPI does not
necessarily reflect the effect of inflation on the specific mix of
goods sold in Loblaw stores; and
- 22 corporate and franchise stores were opened and seven
corporate and franchise stores were closed in the last twelve
months, resulting in a net increase of 0.4 million square feet, or
0.8%.
- In the second quarter of 2012, gross profit decreased by
$15 million compared to the second
quarter of 2011 and gross profit percentage was 22.3%, a decline
from 22.7% in the second quarter of 2011. These declines were
primarily driven by higher input costs outpacing internal food
price inflation and increased transportation costs. Higher input
costs that were not entirely passed on to the consumer included an
estimated $10 million of the
incremental investment in the Company's customer proposition that
was not covered by operations. The decline in gross profit
percentage was also attributable to a higher proportion of food
sales.
- Operating income decreased by $58
million compared to the second quarter of 2011 and operating
margin was 3.8% for the second quarter of 2012 compared to 4.7% in
the same period in 2011. In addition to the notable items described
in the Consolidated Quarterly Results of Operations above,
operating income and operating margin were negatively impacted by
an increase in labour and other operating costs and decreases in
gross profit and foreign exchange gains, partially offset by
changes in the value of the Company's investments in its franchise
business. The increase in labour costs included an estimated
$5 million of the incremental
investment in the Company's customer proposition related to
improved service in stores that was not covered by operations.
Financial Services Results of Operations
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For the periods
ended June 16, 2012 and
June 18, 2011 (unaudited)
(millions of Canadian dollars except where
otherwise indicated) |
|
|
2012
(12 weeks) |
|
|
2011
(12 weeks) |
|
|
$ Change |
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|
% Change |
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|
2012
(24 weeks) |
|
|
2011
(24 weeks) |
|
|
$ Change |
|
|
% Change |
| Revenue |
|
$ |
139 |
|
$ |
121 |
|
$ |
18 |
|
|
14.9% |
|
$ |
268 |
|
$ |
236 |
|
$ |
32 |
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13.6% |
| Operating income |
|
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15 |
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12 |
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3 |
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25.0% |
|
|
29 |
|
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30 |
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(1) |
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(3.3%) |
| Earnings before income taxes |
|
|
4 |
|
|
2 |
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|
2 |
|
|
100.0% |
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|
8 |
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7 |
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1 |
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14.3% |
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As at |
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As at |
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| (millions of Canadian dollars except where
otherwise indicated) (unaudited) |
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June 16, 2012 |
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June 18, 2011 |
|
|
$ Change |
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% Change |
| Average quarterly net credit card receivables |
|
$ |
2,049 |
|
$ |
1,953 |
|
$ |
96 |
|
|
4.9% |
| Credit card receivables |
|
|
2,058 |
|
|
1,974 |
|
|
84 |
|
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4.3% |
| Allowance for credit card receivables |
|
|
36 |
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33 |
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3 |
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9.1% |
| Annualized yield on average quarterly gross credit
card receivables |
|
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12.7% |
|
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12.6% |
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| Annualized credit loss rate on average quarterly
gross credit card receivables |
|
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4.4% |
|
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4.8% |
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- Revenue for the second quarter of 2012 increased by 14.9%
compared to the second quarter of 2011. The increase was primarily
driven by increased credit card transaction values and receivable
balances, resulting in higher interchange fee and interest income.
Higher PC Telecom revenues resulting from the 2011 launch of
the new Mobile Shop kiosks also contributed to the increase.
- Operating income for the second quarter of 2012 increased by
$3 million compared to the second
quarter of 2011. The increase was as a result of the increase in
revenue as described above, partially offset by higher PC
Points loyalty costs and operational costs related to an increase
in active accounts.
- Earnings before income taxes increased by $2 million in the second quarter of 2012 compared
to the second quarter of 2011. The increase was primarily a result
of the increase in operating income, partially offset by an
increase in net interest and other financing charges.
Outlook(1)
- For fiscal 2012, the Company continues to expect:
-
- Capital expenditures to be approximately $1.1 billion, with approximately 40% to be
dedicated to investing in the IT infrastructure and supply chain
projects and the remaining 60% to be spent on retail
operations;
- Costs associated with the transition of certain Ontario conventional stores under collective
agreements ratified in 2010 to range from $30 million to $40 million;
- Incremental costs related to investments in IT and supply chain
to be approximately $70 million;
- $40 million of incremental
investment in its customer proposition will not be covered by
operations; and
- Net earnings per share to be down year-over-year, with more
pressure in the first half of the year, as a result of the
Company's expectation that operations will not cover the
incremental costs related to the investments in IT and supply chain
and its customer proposition.
| (1) |
See Forward-Looking Statements in this News Release. |
Forward-Looking Statements
This News Release for Loblaw Companies Limited contains
forward-looking statements about the Company's objectives, plans,
goals, aspirations, strategies, financial condition, results of
operations, cash flows, performance, prospects and opportunities.
These forward-looking statements are typically identified by words
such as "anticipate", "expect", "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. In this News Release, forward-looking
statements include the Company's continued expectation that for
fiscal 2012:
- its capital expenditures will be approximately $1.1 billion;
- costs associated with the transition of certain Ontario conventional stores under collective
agreements ratified in 2010 will range from $30 million to $40 million;
- incremental costs related to investments in information
technology ("IT") and supply chain will be approximately
$70 million;
- $40 million of incremental costs
associated with strengthening its customer proposition will not be
covered by operations; and
- net earnings per share to be down year-over-year, with more
pressure in the first half of the year, as a result of the
Company's expectation that operations will not cover the
incremental costs related to the investments in IT and supply chain
and its customer proposition.
These forward-looking statements are not historical facts but
reflect the Company's current expectations concerning future
results and events. They also reflect management's current
assumptions regarding the risks and uncertainties referred to below
and their respective impact on the Company. In addition, the
Company's expectation with regard to its net earnings in 2012 is
based in part on the assumptions that tax rates will be similar to
those in 2011, the Company achieves its plan to increase net retail
square footage by 1% and there are no unexpected adverse events or
costs related to the Company's investments in IT and supply
chain.
The forward-looking statements contained in this News Release
are subject to a number of risks and uncertainties that could cause
actual results or events to differ materially from current
expectations, including, but not limited to:
- failure to realize revenue growth, anticipated cost savings or
operating efficiencies from the Company's major initiatives,
including investments in the Company's IT systems, including the
Company's IT systems implementation, or unanticipated results from
these initiatives;
- the inability of the Company's IT infrastructure to support the
requirements of the Company's business;
- heightened competition, whether from current competitors or new
entrants to the marketplace;
- changes in economic conditions including the rate of inflation
or deflation, changes in interest and currency exchange rates and
derivative and commodity prices;
- public health events including those related to food
safety;
- failure to achieve desired results in labour negotiations,
including the terms of future collective bargaining agreements,
which could lead to work stoppages;
- the inability of the Company to manage inventory to minimize
the impact of obsolete or excess inventory and to control
shrink;
- failure by the Company to maintain appropriate records to
support its compliance with accounting, tax or legal rules,
regulations and policies;
- failure of the Company's franchise stores to perform as
expected;
- reliance on the performance and retention of third-party
service providers including those associated with the Company's
supply chain and apparel business;
- supply and quality control issues with vendors;
- changes to or failure to comply with laws and regulations
affecting the Company and its business, including changes to the
regulation of generic prescription drug prices and the reduction of
reimbursement under public drug benefit plans and the elimination
or reduction of professional allowances paid by drug
manufacturers;
- changes in the Company's income, commodity, other tax and
regulatory liabilities including changes in tax laws, regulations
or future assessments;
- any requirement of the Company to make contributions to its
registered funded defined benefit pension plans or the
multi-employer pension plans in which it participates in excess of
those currently contemplated;
- the risk that the Company would experience a financial loss if
its counterparties fail to meet their obligations in accordance
with the terms and conditions of their contracts with the Company;
and
- the inability of the Company to collect on its credit card
receivables.
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, including the
Enterprise Risks and Risk Management section of the Management's
Discussion and Analysis ("MD&A") and the MD&A included in
the Company's 2011 Annual Report - Financial Review. Readers are
cautioned not to place undue reliance on these forward-looking
statements, which reflect the Company's expectations only as of the
date of this News Release. The Company disclaims any intention or
obligation to update or revise these forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
Non-GAAP Financial Measures
The Company uses the following non-GAAP financial measures:
EBITDA and EBITDA margin. The Company believes these non-GAAP
financial measures provide useful information to both management
and investors in measuring the financial performance of the Company
for the reasons outlined below. These measures do not have a
standardized meaning prescribed by GAAP and therefore they may not
be comparable to similarly titled measures presented by other
publicly traded companies, and should not be construed as an
alternative to other financial measures determined in accordance
with GAAP.
EBITDA and EBITDA Margin The following table reconciles
earnings before income taxes, net interest expense and other
financing charges and depreciation and amortization ("EBITDA") to
operating income which is reconciled to GAAP net earnings measures
reported in the consolidated statements of earnings for the 12 and
24 week periods ended June 16, 2012
and June 18, 2011. EBITDA is useful
to management in assessing performance of its ongoing operations
and its ability to generate cash flows to fund its cash
requirements, including the Company's capital investment
program.
EBITDA margin is calculated as EBITDA divided by revenue.
| |
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| |
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|
2012 |
|
|
2011 |
|
|
2012 |
|
|
2011 |
| (millions of Canadian dollars)
(unaudited) |
|
|
(12 weeks) |
|
|
(12 weeks) |
|
|
(24 weeks) |
|
|
(24 weeks) |
| Net earnings |
|
$ |
159 |
|
$ |
197 |
|
$ |
285 |
|
$ |
359 |
| Add impact of the following: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Income taxes |
|
|
54 |
|
|
70 |
|
|
93 |
|
|
138 |
| |
Net interest expense and other financing
charges |
|
|
77 |
|
|
78 |
|
|
151 |
|
|
151 |
| Operating income |
|
|
290 |
|
|
345 |
|
|
529 |
|
|
648 |
| Add impact of the following: |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Depreciation and amortization |
|
|
179 |
|
|
159 |
|
|
349 |
|
|
311 |
| EBITDA |
|
$ |
469 |
|
$ |
504 |
|
$ |
878 |
|
$ |
959 |
| |
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|
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|
Selected Financial Information
The following includes selected quarterly financial information,
which is prepared by management in accordance with International
Financial Reporting Standards ("IFRS") and is based on the
Company's 2012 Second Quarter Report to Shareholders. This
financial information does not contain all interim period
disclosures required by IFRS, and accordingly, should be read in
conjunction with the Company's 2011 Annual Report - Financial
Review and 2012 Second Quarter Report to Shareholders which are
available in the Investor Centre section of the Company's website
at www.loblaw.ca.
Condensed Consolidated Statements of
Earnings
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|
|
| |
|
June 16,
2012 |
|
June 18, 2011 |
|
June 16,
2012 |
|
June 18, 2011 |
| (millions of Canadian dollars
except where otherwise indicated) (unaudited) |
|
(12
weeks) |
|
(12 weeks) |
|
(24 weeks) |
|
(24 weeks) |
| Revenue |
|
$ |
7,375 |
|
$ |
7,278 |
|
$ |
14,312 |
|
$ |
14,150 |
| Cost of Merchandise Inventories Sold |
|
|
5,632 |
|
|
5,533 |
|
|
10,916 |
|
|
10,736 |
| Selling, General and Administrative
Expenses |
|
|
1,453 |
|
|
1,400 |
|
|
2,867 |
|
|
2,766 |
| Operating Income |
|
|
290 |
|
|
345 |
|
|
529 |
|
|
648 |
| Net interest expense and other financing
charges |
|
|
77 |
|
|
78 |
|
|
151 |
|
|
151 |
| Earnings Before Income Taxes |
|
|
213 |
|
|
267 |
|
|
378 |
|
|
497 |
| Income taxes |
|
|
54 |
|
|
70 |
|
|
93 |
|
|
138 |
| Net Earnings |
|
$ |
159 |
|
$ |
197 |
|
$ |
285 |
|
$ |
359 |
| Net Earnings per Common Share ($) |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.57 |
|
$ |
0.70 |
|
$ |
1.01 |
|
$ |
1.28 |
| Diluted |
|
$ |
0.56 |
|
$ |
0.69 |
|
$ |
1.01 |
|
$ |
1.27 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
| |
|
|
|
|
|
|
|
|
|
| |
|
As at |
|
As at |
|
As at |
| (millions of Canadian
dollars) (unaudited) |
|
June 16,
2012 |
|
June 18, 2011 |
|
December 31,
2011 |
| Assets |
|
|
|
|
|
|
|
|
|
| Current Assets |
|
|
|
|
|
|
|
|
|
| |
Cash and cash equivalents |
|
$ |
923 |
|
$ |
774 |
|
$ |
966 |
| |
Short term investments |
|
|
718 |
|
|
699 |
|
|
754 |
| |
Accounts receivable |
|
|
459 |
|
|
408 |
|
|
467 |
| |
Credit card receivables |
|
|
2,058 |
|
|
1,974 |
|
|
2,101 |
| |
Inventories |
|
|
1,890 |
|
|
1,962 |
|
|
2,025 |
| |
Income taxes recoverable |
|
|
5 |
|
|
12 |
|
|
- |
| |
Prepaid expenses and other assets |
|
|
147 |
|
|
136 |
|
|
117 |
| |
Assets held for sale |
|
|
23 |
|
|
66 |
|
|
32 |
| Total Current Assets |
|
|
6,223 |
|
|
6,031 |
|
|
6,462 |
| Fixed Assets |
|
|
8,765 |
|
|
8,413 |
|
|
8,725 |
| Investment Properties |
|
|
95 |
|
|
73 |
|
|
82 |
| Goodwill & Intangible Assets |
|
|
1,063 |
|
|
1,026 |
|
|
1,029 |
| Deferred Income Taxes |
|
|
263 |
|
|
193 |
|
|
232 |
| Security Deposits |
|
|
244 |
|
|
183 |
|
|
266 |
| Franchise Loans Receivable |
|
|
358 |
|
|
313 |
|
|
331 |
| Other Assets |
|
|
258 |
|
|
347 |
|
|
301 |
| Total Assets |
|
$ |
17,269 |
|
$ |
16,579 |
|
$ |
17,428 |
| Liabilities |
|
|
|
|
|
|
|
|
|
| Current Liabilities |
|
|
|
|
|
|
|
|
|
| |
Trade payables and other liabilities |
|
|
3,356 |
|
|
3,273 |
|
|
3,677 |
| |
Provisions |
|
|
40 |
|
|
75 |
|
|
35 |
| |
Income taxes payable |
|
|
- |
|
|
- |
|
|
14 |
| |
Short term debt |
|
|
905 |
|
|
905 |
|
|
905 |
| |
Long term debt due within one year |
|
|
226 |
|
|
81 |
|
|
87 |
| Total Current Liabilities |
|
|
4,527 |
|
|
4,334 |
|
|
4,718 |
| Provisions |
|
|
47 |
|
|
50 |
|
|
50 |
| Long Term Debt |
|
|
5,369 |
|
|
5,364 |
|
|
5,493 |
| Deferred Income Taxes |
|
|
18 |
|
|
26 |
|
|
21 |
| Capital Securities |
|
|
222 |
|
|
221 |
|
|
222 |
| Other Liabilities |
|
|
971 |
|
|
701 |
|
|
917 |
| Total Liabilities |
|
|
11,154 |
|
|
10,696 |
|
|
11,421 |
| Shareholders' Equity |
|
|
|
|
|
|
|
|
|
| Common Share Capital |
|
|
1,544 |
|
|
1,539 |
|
|
1,540 |
| Retained Earnings |
|
|
4,513 |
|
|
4,300 |
|
|
4,414 |
| Contributed Surplus |
|
|
53 |
|
|
39 |
|
|
48 |
| Accumulated Other Comprehensive
Income |
|
|
5 |
|
|
5 |
|
|
5 |
| Total Shareholders' Equity |
|
|
6,115 |
|
|
5,883 |
|
|
6,007 |
| Total Liabilities
and Shareholders' Equity |
|
$ |
17,269 |
|
$ |
16,579 |
|
$ |
17,428 |
| |
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash
Flow
| |
|
|
|
|
|
|
|
|
|
|
|
|
| (millions of Canadian
dollars) (unaudited) |
|
|
June 16,
2012
(12 weeks) |
|
|
June 18, 2011
(12 weeks) |
|
|
June 16,
2012
(24 weeks) |
|
|
June 18, 2011
(24 weeks) |
| Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net earnings |
|
$ |
159 |
|
$ |
197 |
|
$ |
285 |
|
$ |
359 |
| |
Income taxes |
|
|
54 |
|
|
70 |
|
|
93 |
|
|
138 |
| |
Net interest expense and other
financing charges |
|
|
77 |
|
|
78 |
|
|
151 |
|
|
151 |
| |
Depreciation and amortization |
|
|
179 |
|
|
159 |
|
|
349 |
|
|
311 |
| |
Income taxes paid |
|
|
(53) |
|
|
(55) |
|
|
(122) |
|
|
(96) |
| |
Interest received |
|
|
20 |
|
|
26 |
|
|
27 |
|
|
36 |
| |
Change in credit card receivables |
|
|
(71) |
|
|
(87) |
|
|
43 |
|
|
23 |
| |
Change in non-cash working
capital |
|
|
241 |
|
|
89 |
|
|
(292) |
|
|
(413) |
| |
Fixed assets and other related
impairments |
|
|
- |
|
|
5 |
|
|
3 |
|
|
9 |
| |
Loss on disposal of assets |
|
|
(2) |
|
|
1 |
|
|
(2) |
|
|
1 |
| |
Other |
|
|
(5) |
|
|
(2) |
|
|
7 |
|
|
(19) |
| Cash Flows from Operating
Activities |
|
|
599 |
|
|
481 |
|
|
542 |
|
|
500 |
| Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Fixed asset purchases |
|
|
(233) |
|
|
(161) |
|
|
(367) |
|
|
(316) |
| |
Change in short term investments |
|
|
79 |
|
|
(23) |
|
|
36 |
|
|
41 |
| |
Proceeds from fixed asset sales |
|
|
15 |
|
|
1 |
|
|
16 |
|
|
6 |
| |
Change in franchise investments and
other receivables |
|
|
20 |
|
|
28 |
|
|
3 |
|
|
28 |
| |
Change in security deposits |
|
|
8 |
|
|
- |
|
|
22 |
|
|
167 |
| |
Intangible asset additions |
|
|
(41) |
|
|
(4) |
|
|
(41) |
|
|
(5) |
| |
Other |
|
|
- |
|
|
7 |
|
|
- |
|
|
- |
| Cash Flows used in Investing
Activities |
|
|
(152) |
|
|
(152) |
|
|
(331) |
|
|
(79) |
| Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Change in bank indebtedness |
|
|
- |
|
|
- |
|
|
- |
|
|
(10) |
| |
Change in short term debt |
|
|
- |
|
|
- |
|
|
- |
|
|
370 |
| |
Long term debt |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Issued |
|
|
14 |
|
|
159 |
|
|
37 |
|
|
216 |
| |
|
Retired |
|
|
(44) |
|
|
(7) |
|
|
(73) |
|
|
(865) |
| |
Interest paid |
|
|
(96) |
|
|
(131) |
|
|
(159) |
|
|
(213) |
| |
Dividends paid |
|
|
(59) |
|
|
(16) |
|
|
(59) |
|
|
(16) |
| |
Common shares |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Issued |
|
|
2 |
|
|
16 |
|
|
4 |
|
|
19 |
| |
|
Purchased for cancellation |
|
|
(2) |
|
|
(3) |
|
|
(4) |
|
|
(3) |
| Cash Flows from (used in) Financing
Activities |
|
|
(185) |
|
|
18 |
|
|
(254) |
|
|
(502) |
| Effect of foreign
currency exchange rate changes on cash and cash equivalents |
|
|
4 |
|
|
- |
|
|
- |
|
|
(2) |
| Change in Cash and Cash
Equivalents |
|
|
266 |
|
|
347 |
|
|
(43) |
|
|
(83) |
| Cash and Cash Equivalents, Beginning
of Period |
|
|
657 |
|
|
427 |
|
|
966 |
|
|
857 |
| Cash and Cash Equivalents, End of
Period |
|
$ |
923 |
|
$ |
774 |
|
$ |
923 |
|
$ |
774 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
2011 Annual Report and 2012 Second Quarter Report to
Shareholders
The Company's 2011 Annual Report and 2012 Second Quarter Report
to Shareholders are available in the Investor Centre section of the
Company's website at www.loblaw.ca or at www.sedar.com.
Investor Relations
Shareholders, security analysts and investment professionals
should direct their requests to Kim
Lee, Vice President, Investor Relations at the Company's
National Head Office or by e-mail at investor@loblaw.ca.
Additional information has been filed electronically with
various securities regulators in Canada through the System for Electronic
Document Analysis and Retrieval (SEDAR) and with the Office of the
Superintendent of Financial Institutions (OSFI) as the primary
regulator for the Company's subsidiary, President's Choice
Bank.
Conference Call and Webcast
Loblaw Companies Limited will host a conference call as well as
an audio webcast on July 25, 2012 at
11:00 a.m. (EST).
To access via tele-conference please dial (647) 427-7450. The
playback will be made available two hours after the event at (416)
849-0833,
access code: 87338061. To access via audio webcast please visit
www.loblaw.ca, go to Investor Centre section and click on webcast.
Pre-registration will be available.
Full details are available on the Loblaw Companies Limited
website at www.loblaw.ca.
SOURCE Loblaw Companies Limited