The North West Company Inc. Announces Third Quarter Earnings and a Quarterly Dividend
11 Diciembre 2013 - 11:12AM
Marketwired
The North West Company Inc. Announces Third Quarter Earnings and a
Quarterly Dividend
WINNIPEG, MANITOBA--(Marketwired - Dec 11, 2013) - The North
West Company Inc. (TSX:NWC) (the "Company" or "North West") today
reported its unaudited financial results for the third quarter
ended October 31, 2013. It also announced that the Board of
Directors have declared a dividend of $0.28 per share to
shareholders of record on December 31, 2013, to be paid on January
15, 2014.
Financial Highlights3
Sales increased 2.5%
to $387.2 million compared to $377.7 million in the third quarter
last year as same store sales growth and new store sales in our
International Operations more than offset the sales impact of the
store closures in the Canadian Operations in the fourth quarter of
2012. Excluding the foreign exchange impact, sales increased 0.8%
and were up 2.3%1 on a same store basis. Food sales1 increased 1.6%
and were up 2.5% on a same store basis and general merchandise
sales1 decreased 1.7% but were up 1.3% on a same store basis.
Earnings from
Operations2 increased 2.5% to $26.9 million compared to $26.2
million in the third quarter last year. Gross profit dollars
increased 3.0% largely due to sales growth in the International
Operations and a 13 basis point improvement in gross profit rate on
a consolidated basis. Selling, operating and administrative
expenses increased 3.1% compared to last year and were up 13 basis
points as a percentage to sales mainly due to higher expenses
related to new stores in the International Operations and the
impact of foreign exchange on the translation of U.S. denominated
expenses. Higher employee costs, due in part to pension plan
expense and share-based compensation costs related to an increase
in the share price in the quarter, and higher utility costs in
remote markets were also factors. Excluding the foreign exchange
impact, earnings from operations increased 1.3% compared to last
year.
Trading profit2 or
earnings before interest, income taxes, depreciation and
amortization (EBITDA) increased 2.6% to $36.5 million compared to
$35.6 million last year with both the Canadian Operations and
International Operations contributing to the increase. Excluding
the foreign exchange impact, trading profit increased 1.4% compared
to last year and was 9.5% as a percentage to sales compared to 9.4%
last year.
Third quarter net
earnings increased 1.3% to $17.4 million compared to last year and
diluted earnings per share were flat to last year at $0.36 per
share.
"It was encouraging
to see that sales and margins strengthened across all of our
banners with the exception of northern Canada" commented North West
President & CEO Edward Kennedy. "Northern Canada's economy
remains relatively flat with employment and consumer income growth
at a low ebb. In this environment we continue to focus on
productivity work and meeting our customers' most important
everyday shopping needs."
Further information
on the financial results is available in the Company's third
quarter report to shareholders, Management's Discussion and
Analysis and unaudited interim condensed consolidated financial
statements which can be found in the investor section of the
Company's website at www.northwest.ca.
1 Excluding the foreign exchange
impact |
2 See Non-GAAP Measures Section of
Management's Discussion & Analysis |
3 Certain of the 2012 comparative figures
have been restated in accordance with the implementation of the
revised IAS19, Employee Benefits accounting standard. Further
information is provided in the 2013 third quarter Management's
Discussion & Analysis or Note 3 in the Company's 2013 third
quarter unaudited interim condensed consolidated financial
statements. |
Third Quarter Conference
Call
North West is also
hosting a conference call for its third quarter results on December
11, 2013 at 2:30 p.m. (Central Standard Time). To access the call,
please dial 416-340-2217 or 866-696-5910 with a pass code of
7467082. The conference call will be archived and can be accessed
by dialing 905-694-9451 or 800-408-3053 with a pass code of 7986369
on or before December 18, 2013.
Notice to Readers
Certain
forward-looking statements are made in this news release, within
the meaning of applicable securities laws. These statements reflect
North West's current expectations and are based on information
currently available to management. The words may, will, should,
believe, expect, plan, anticipate, intend, estimate, predict,
potential, continue, or the negative of these terms, identify
forward- looking matters. These statements speak only as of the
date of this press release. The actual results could differ
materially from those anticipated in these forward-looking
statements.
Reliance should not
be placed on forward-looking statements because they involve known
and unknown risks, uncertainties and other factors, which may cause
the actual results, performance or achievements of North West to
differ materially from anticipated future results, performance or
achievement expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially from those set forth in the forward-looking statements
include, but are not limited to, fluctuations in interest rates and
currency values, legislative and regulatory developments, legal
developments, the occurrence of weather- related and other natural
catastrophes, changes in tax laws, and those risks and
uncertainties detailed in the section entitled Risk Factors in
North West's Management's Discussion and Analysis and Annual
Information Form, both for the year-ended January 31, 2013. The
preceding list is not an exhaustive list of possible factors. These
and other factors should be considered carefully and readers are
cautioned not to place undue reliance on these forward-looking
statements. North West undertakes no obligation to publicly update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, other than as required
by applicable law.
Company Profile
The North West
Company Inc., through its subsidiaries, is a leading retailer of
food and everyday products and services to rural communities and
urban neighbourhoods in Canada, Alaska, the South Pacific and the
Caribbean. North West operates 226 stores under the trading names
Northern, NorthMart, Giant Tiger, AC Value Center and Cost-U-Less
and has annualized sales of approximately CDN$1.5 billion.
The common shares of
North West trade on the Toronto Stock Exchange under the symbol
NWC.
The North West Company Inc.Edward KennedyPresident and
CEO204-934-1482204-934-1317ekennedy@northwest.caThe North West
Company Inc.John KingChief Financial
Officer204-934-1397204-934-1317jking@northwest.ca
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