The Jean Coutu Group (PJC) Inc.
TSX : PJC.A

The Jean Coutu Group (PJC) Inc.

April 27, 2009 07:00 ET

The Jean Coutu Group: Fourth Quarter and Fiscal Year 2009 Results

Reports Earnings Before Specific Items and Share of Rite Aid's Loss of $0.16 per Share for the Fourth Quarter and of $0.59 per Share for Fiscal 2009

LONGUEUIL, QUEBEC--(Marketwire - April 27, 2009) - The Jean Coutu Group (PJC) Inc. (the "Company" or the "Jean Coutu Group") (TSX:PJC.A) reported its financial results today for the fourth quarter and fiscal year ended February 28, 2009.



SUMMARY OF RESULTS
(Unaudited, in millions of Canadian dollars except per share amounts)
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Comparable
Fiscal year period
2009 2008(2)
Q4-2009 Q3-2008(1) (52 weeks) (52 weeks)
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$ $ $ $
Revenues
Canada 607.2 553.0 2,369.3 2,224.7
United States - - - 2,708.9
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607.2 553.0 2,369.3 4,933.6
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Operating income
before
amortization
("OIBA")
Canada 61.5 56.5 232.8 225.3
United States - - - 63.4
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61.5 56.5 232.8 288.7
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Share of loss
of Rite Aid
Corporation 768.8 332.1 1,327.0 393.3

Net earnings
(loss) (733.6) (269.2) (1,192.1) (257.8)
Per share (3.11) (1.08) (4.92) (1.00)

Earnings before
specific items
and share of
Rite Aid's loss 38.5 32.3 142.6 132.1
Per share 0.16 0.12 0.59 0.51

(1) The comparative figures used for the fourth quarter fiscal year
2009 results for the period ended February 28, 2009 are from the
comparable 13-week period ended March 1, 2008, which represented
the third quarter of fiscal year 2008.

(2) The comparative figures used for the fiscal year results ended
February 28, 2009 are from the comparable 52-week period ended
March 1, 2008, which included the fourth quarter of fiscal year
2007 and fiscal year 2008 ("2008 comparable period"). This period
includes revenues from US operations for a 13-week period, from
March 4, 2007 to June 4, 2007.
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HIGHLIGHTS

- Revenues of Canadian operations increased by 9.8% during the fourth quarter of fiscal year 2009 to $607.2 million compared with $553.0 million during the third quarter of fiscal year 2008.

- OIBA amounted to $61.5 million, an increase of almost 9% despite generic drug price reductions and the decrease in the average wholesaler margin for prescription drug distribution from 7% in the third quarter of fiscal year 2008 to 6% during the fourth quarter of fiscal year 2009.

- The Company recorded its share of Rite Aid's loss during the fourth quarter of fiscal year 2009, which amounted to $768.8 million ($3.26 per share).

- 12.5% increase in the regular quarterly cash dividend, which has increased to $0.045 per share.

Financial results

"Canadian operations performed well during the fourth quarter. We have maintained our growth objectives and our network's retail sales increased significantly in spite of the Canadian economic conditions. Our dividend increase reflects the Company's performance and demonstrates The Jean Coutu Group's commitment to optimize the share value and the return on investment" said Francois J. Coutu, President and Chief Executive Officer. "In fiscal year 2010, we intend to maintain the rhythm of our network's expansion and pursue the development of our product offering to boost sales. We will also continue to analyze the progress made by Rite Aid's management towards the implementation of their strategic plan."

Fiscal years

The fiscal year ended February 28, 2009 contains 52 weeks. The fiscal year ended March 1, 2008 exceptionally contained 38 weeks and 5 days due to the change in the fiscal year-end date. The discussion that follows provides an analysis of the consolidated operating results based on corresponding periods in order to provide meaningful analysis for readers. The figures used to compare the results of the fourth quarter of fiscal year ended February 28, 2009 ("Q4-2009") are from the period ended March 1, 2008, corresponding with the third quarter of fiscal year 2008 ("Q3-2008"). The 52-week comparable period used to compare the results of the fiscal year ended February 28, 2009 is from the fourth quarter of fiscal year 2007 and fiscal year 2008 ("2008 comparable period").

Distribution center sales

Canadian operations distribution center sales amounted to $543.2 million during the fourth quarter of fiscal year 2009 compared with $494.9 million for the third quarter of fiscal year ended March 1, 2008, an increase of 9.8%.

Operating income for the fourth quarter of fiscal year 2009 increased by 6.6% to $54.9 million compared with $51.5 million during last year's comparable quarter.

During fiscal year 2009, the Company changed its method of invoicing certain vendor revenues from a method mainly based on expense reimbursement to one based on volume purchased. Consequently, these revenues are now recorded as a reduction of the cost of goods sold account. During fiscal year 2008, vendor revenues and expenses related thereto were recorded on a net basis in general and operating expenses, with the excess allocated to the cost of goods sold account.

OIBA

OIBA for Canadian operations amounted to $61.5 million for the fourth quarter of fiscal year 2009 compared with $56.5 million for the third quarter of fiscal year 2008, an increase of almost 9% despite generic drug price reductions and the decrease in the average wholesaler margin for prescription drug distribution from 7% in the third quarter of fiscal year 2008 to 6% during the fourth quarter of fiscal year 2009. The increase in OIBA is mostly attributable to a strong operational performance. OIBA as a percentage of revenues for Canadian operations ended the fourth quarter of fiscal year 2009 at 10.1% compared to 10.2% for the third quarter of fiscal year 2008.

OIBA as a percentage of revenues for Canadian operations ended fiscal year 2009 at 9.8% compared with 10.1% for the 2008 comparable period.

Share of loss from Rite Aid

The share of loss from Rite Aid included in the Company's earnings during the fourth quarter of fiscal year 2009 amounted to $768.8 million ($3.26 per share) compared with $332.1 million ($1.19 after-tax per share) during the third quarter of fiscal year 2008.This is a non-cash charge.

The share of loss from Rite Aid included in the Company's earnings during fiscal year 2009 amounted to $1.327 billion ($5.48 per share). During the 2008 comparable period, the share of loss from Rite Aid included in the Company's earnings amounted to $393.3 million ($1.35 after-tax per share). This is a non-cash charge.

As a result of the deterioration of the economic environment in the United States, combined with the severity of the decline in the trading value of Rite Aid common shares for an extended period, the Company performed a comprehensive analysis related to its investment in Rite Aid and impaired it to its fair value. Consequently, the carrying value of the investment in Rite Aid was assessed at $58.3 million as at February 28, 2009. The Company used the closing market value of Rite Aid's common shares as of February 27, 2009, adjusted by a liquidity discount, to assess the fair value of its investment and record the other-than-temporary loss in value. This loss in value is included in the share of loss from investments subject to significant influence account in the consolidated statement of earnings of the Company.

Net loss

For the fourth quarter of fiscal year 2009, the net loss amounted to $733.6 million ($3.11 per share) compared with $269.2 million ($1.08 per share) for the third quarter of fiscal year 2008. For the fiscal year ended February 28, 2009, the net loss amounted to $1.192 billion ($4.92 per share). For the 2008 comparable period, the net loss amounted to $257.8 million ($1.00 per share). The net loss for the fourth quarter and fiscal year 2009 is due to the recording of the share of loss from Rite Aid.

Earnings before specific items and share of loss from Rite Aid amounted to $38.5 million ($0.16 per share) during the fourth quarter of fiscal year 2009, compared with $32.3 million ($0.12 per share) during the third quarter of fiscal year 2008. Earnings before specific items and share of loss from Rite Aid amounted to $142.6 million ($0.59 per share) in fiscal year 2009 compared with $132.1 million ($0.51 per share) for the 2008 comparable period.

Network performance

During the fourth quarter of fiscal year 2009, the Company's Canadian franchise network showed a 6.4% increase in total retail sales compared with the third quarter of fiscal year 2008. Network retail sales, on a same-store basis, were up 4.2%, pharmacy sales gained 4.9% and front-end sales increased 3.0% compared with the third quarter of fiscal year 2008. Retail sales for the quarter amounted to $898.8 million.

For the fiscal year 2009, on a same-store basis, total PJC network retail sales advanced 3.8%, pharmaceutical sales gained 5.4% and front-end sales increased 1.2% compared with the 2008 comparable period.



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Comparable
Fiscal year Period
RETAIL SALES GROWTH 2009 2008
(Unaudited Q4-2009 Q3-2008 (52 weeks) (52 weeks)
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CANADA(1)
Total sales growth
Total 6.4% 5.0% 5.4% 6.5%
Pharmacy 7.5% 7.9% 7.1% 8.9%
Front-end 5.2% 0.0% 2.7% 2.5%
Same store sales growth
Total 4.2% 4.1% 3.8% 5.9%
Pharmacy 4.9% 7.3% 5.4% 8.5%
Front-end 3.0% -1.2% 1.2% 1.5%

(1) Franchised outlets' retail sales are not included in the
Company's consolidated financial statements.
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Store network development

During fiscal year 2009, there were 33 store openings, including 11 relocations. In addition, 28 stores were significantly renovated or expanded during fiscal year 2009. On February 28, 2009, there were 353 stores in the PJC network of franchised stores.

Third party asset-backed commercial paper ("ABCP")

On February 28, 2009, the Company held investments of a nominal amount of $35.9 million (of which $1.3 million is denominated in US dollars), which were invested, in August 2007, in Canadian third party asset-backed commercial paper ("ABCP"). These ABCP are accounted for at their fair value, which was $21.8 million as at February 28, 2009. An amount of $7.1 million of the total loss in value was recorded during fiscal year 2008, and an amount of $7.0 million was recorded during the fiscal year 2009.

Normal Course Issuer Bid

During fiscal year 2009, the Company purchased 12,311,000 Class A subordinate voting shares at an average price of $7.42 per share pursuant to a Normal Course Issuer Bid for a total amount of $91.4 million. During fiscal year 2008, the Company purchased 13,672,800 Class A subordinate voting shares at an average price of $12.93 per share pursuant to this program. All these shares were cancelled as of February 28, 2009.
The Company has determined that the purchase of its Class A shares allows it to optimize its capital structure and create long-term value for shareholders.

Dividend

The Board declared a quarterly dividend of $0.045 per share, which represents an increase of 12.5% over the dividend paid the previous quarter. This dividend is payable on May 29, 2009, to all holders of Class A subordinate voting shares and holders of Class B shares listed in the Company's shareholder ledger as of May 15, 2009. On an annual basis, this represents a dividend of $0.18 per share.

Non-GAAP financial measures

This press release contains certain non-GAAP financial measures. Such information is reconciled to the most directly comparable financial measures, as set forth in the Management's Discussion & Analysis, included in the Company's 2009 Annual Report.

Outlook

With operations in Canada and financial flexibility, the Company is well positioned to capitalize on the growth in the drugstore retail industry. Demographic trends are expected to contribute to growth in the consumption of prescription drugs and to the increased use of pharmaceuticals as the primary intervention in individual healthcare. Management believes that these trends will continue despite the current economic slowdown, and that the Company will grow its revenues through differentiation and quality of offering and service levels in its Canadian network of franchised stores, which it operates with a focus on sales growth, its real estate program and operating efficiency.

Rite Aid disclosed on April 2, 2009 that a net loss between US$210 and US$435 million is projected for the fiscal year 2010. If, in the future, the Company's share of loss in Rite Aid exceeds the carrying value of the investment, the Company would reduce the carrying value of its investment down to zero and would cease recording its share of loss in Rite Aid as required by Canadian GAAP, since the Company has not guaranteed obligations of Rite Aid and is not committed to provide further financial support to Rite Aid.

Conference call

Financial analysts are invited to attend the fourth quarter and fiscal year 2009 results conference call to be held on April 27, 2009, at 9:00 AM (ET). The toll free call-in number is 1-877-695-6175 - access code 3283314 followed by pound sign (#). Media and other interested individuals are invited to listen to the live or deferred broadcast on The Jean Coutu Group corporate website at www.jeancoutu.com. A full replay will also be available by dialing 1-800-408-3053 - access code 3283314 followed by pound sign (#) until May 27, 2009.

Supporting documentation (Management's discussion and analysis and investor presentation) is available at www.jeancoutu.com using the investors' link. Readers may also access additional information and filings related to the Company using the following link to the www.sedar.com website.

About The Jean Coutu Group

The Jean Coutu Group (PJC) Inc. operates a network of 353 franchised stores in Canada located in the provinces of Quebec, New Brunswick and Ontario (under the banners of PJC Jean Coutu, PJC Clinique and PJC Sante Beaute) and employs more than 16,000 people. The Jean Coutu Group is one of the most trusted names in Canadian pharmacy retailing. The Company holds a significant interest in Rite Aid Corporation, a national chain of drugstores in the United States with more than 4,900 drugstores in 31 states and the District of Columbia.

This press release contains forward-looking statements that involve risks and uncertainties, and which are based on the Company's current expectations, estimates, projections and assumptions and were made by the Company in light of its experience and its perception of historical trends. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, costs, operating or financial results, are forward-looking statements. All statements other than statements of historical facts included in this press release, including, statements regarding the prospects of the Company's industry and the Company's prospects, plans, financial position and business strategy, may constitute forward-looking statements within the meaning of the Canadian securities legislation and regulations. Some of the forward-looking statements may be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "project", "could", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. These statements do not reflect the potential impact of any non-recurring items or of any mergers, acquisitions, dispositions, asset write-downs or other transactions or charges that may be announced or that may occur after the date hereof. While the list below is not exhaustive, some important factors that could affect our future operating results, financial position and cash flows and could cause our actual results to differ materially from those expressed in these forward-looking statements are the participation in Rite Aid Corporation ("Rite Aid"), general economic, financial or market conditions, the investment in third party asset-backed commercial paper ("ABCP"), the cyclical and seasonal variations in the industry in which we operate, the changes in the regulatory environment as it relates to the sale of prescription drugs, the ability to attract and retain pharmacists, the intensity of competitive activity in the industry in which we operate, labour disruptions, including possibly strikes and labour protests, changes in laws and regulations, or in their interpretations, changes in tax regulations and accounting pronouncements, the success of the Company's business model, the supplier and brand reputations and the accuracy of management's assumptions and other factors that are beyond our control.

These and other factors could cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Investors and others are cautioned that undue reliance should not be placed on any forward-looking statements. For more information on the risks, uncertainties and assumptions that would cause the Company's actual results to differ from current expectations, please also refer to the Company's public filings available at www.sedar.com and www.jeancoutu.com. In particular, further details and descriptions of these and other factors are disclosed in the Company's Annual Information Form under "Risk Factors" and in the "Risks and Uncertainties" section of the Management's Discussion & Analysis. We expressly disclaim any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by the applicable securities laws.




THE JEAN COUTU GROUP (PJC) INC.

Consolidated statements of earnings 13 weeks 52 weeks

For the periods ended February 28,
2009 and March 1, 2008 2009 2008 2009 2008
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(unaudited, in millions of $ $ $ $
Canadian dollars, unless
otherwise noted)

Sales 543.2 494.9 2,131.9 4,705.6
Other revenues 64.0 58.1 237.4 228.0
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607.2 553.0 2,369.3 4,933.6
Operating expenses
Cost of goods sold 495.0 449.3 1,944.4 3,826.3
General and operating expense 53.1 48.2 199.5 793.3
Restructuring charges - - - 29.3
Amortization 4.2 4.0 16.1 15.5
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552.3 501.5 2,160.0 4,664.4
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Operating income 54.9 51.5 209.3 269.2
Financing expenses 4.7 4.5 12.6 80.4
Adjustment to gain (gain)
on sale of the retail
sales segment - 0.5 - (139.9)
Loss on early debt retirement - - - 178.9
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Earnings before the following
items 50.2 46.5 196.7 149.8
Share of loss from investments
subject to
significant influence 768.8 332.1 1,327.0 393.3
Income taxes (recovery) 15.0 (16.4) 61.8 14.3
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Net loss (733.6) (269.2) (1,192.1) (257.8)
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Basic and diluted loss per
share, in dollars (3.11) (1.08) (4.92) (1.00)
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Consolidated statements of comprehensive income

13 weeks 52 weeks
For the periods ended February 28,
2009 and March 1, 2008 2009 2008 2009 2008
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(unaudited, in millions of $ $ $ $
Canadian dollars)

Net loss (733.6) (269.2) (1,192.1) (257.8)
Other comprehensive income
Foreign currency translation
adjustments 23.8 (13.8) 282.0 (17.4)
Income taxes on the above item - 1.2 - 16.3
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23.8 (12.6) 282.0 (1.1)
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Comprehensive income (709.8) (281.8) (910.1) (258.9)
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Note: The 52-week period ending March 1, 2008 is not a fiscal year but a
comparable period since the fiscal year ended March 1, 2008 included 39
weeks. Please see Note 1b) of 2009 annual financial statements of the
Company for more details.



THE JEAN COUTU GROUP (PJC) INC.
Consolidated statements of changes in shareholders' equity

13 weeks 52 weeks
For the periods ended February 28,
2009 and March 1, 2008 2009 2008 2009 2008
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(unaudited, in millions of $ $ $ $
Canadian dollars)

Capital stock, beginning
of period 648.1 730.5 715.4 789.5
Redemption of capital stock - (15.1) (67.3) (74.7)
Options exercised - - - 0.6
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Capital stock, end of period 648.1 715.4 648.1 715.4
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Contributed surplus, beginning
of period 26.2 15.3 16.7 4.5
Stock-based compensation cost 0.2 0.3 1.0 2.5
Stock-based compensation from
investment subject
to significant influence - Rite Aid 2.0 1.1 10.7 9.7
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Contributed surplus, end of period 28.4 16.7 28.4 16.7
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Retained earnings, beginning
of period 418.9 1,225.6 930.8 1,333.9
Impact of the adoption of
new accounting standards - - - (4.5)
Net loss (733.6) (269.2) (1,192.1) (257.8)
Dividends (9.4) (10.0) (38.7) (38.5)
Excess of purchase price
over carrying value of
Class A subordinate voting
shares acquired - (15.6) (24.1) (102.3)
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Retained earnings (deficit),
end of period (324.1) 930.8 (324.1) 930.8
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Accumulated other comprehensive
income, beginning of period 79.4 (166.2) (178.8) (177.7)
Foreign currency translation
adjustments, net of
income taxes 23.8 (12.6) 282.0 (1.1)
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Accumulated other comprehensive
income, end of period 103.2 (178.8) 103.2 (178.8)
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Total shareholders' equity 455.6 1,484.1 455.6 1,484.1
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THE JEAN COUTU GROUP (PJC) INC.
As at As at
February 28, March 1,
Consolidated balance sheets 2009 2008
------------------------------------------------------------
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(in millions of Canadian dollars) $ $
(unaudited) (audited)
Assets
Current assets
Accounts receivable 183.6 167.9
Inventories 159.4 154.7
Prepaid expenses 6.2 5.2
------------------------------------------------------------
349.2 327.8
Investments 110.1 1,143.2
Property and equipment 366.2 329.3
Goodwill 36.0 35.3
Other long-term assets 152.9 113.7
------------------------------------------------------------
1,014.4 1,949.3
------------------------------------------------------------
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Liabilities
Current liabilities
Accounts payable and accrued
liabilities 217.0 201.7
Income taxes payable 36.4 62.9
Current portion of long-term debt 5.9 2.0
------------------------------------------------------------
259.3 266.6
Long-term debt 269.8 169.5
Other long-term liabilities 29.7 29.1
------------------------------------------------------------
558.8 465.2
------------------------------------------------------------

Shareholders' equity
Capital stock 648.1 715.4
Contributed surplus 28.4 16.7

Retained earnings (deficit) (324.1) 930.8
Accumulated other comprehensive
income 103.2 (178.8)
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(220.9) 752.0
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455.6 1,484.1
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1,014.4 1,949.3
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THE JEAN COUTU GROUP (PJC) INC.

Consolidated statements of cash flows 13 weeks 52 weeks
For the periods ended February 28,
2009 and March 1, 2008 2009 2008 2009 2008
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-------------------------------------------------------------------------
(unaudited, in millions of $ $ $ $
Canadian dollars)

Operating activities
Net loss (733.6) (269.2) (1,192.1) (257.8)
Items not affecting cash
Amortization 6.6 5.0 23.5 23.1
Adjustment to gain (gain)
on sale of the retail sales
segment - 0.5 - (139.9)
Write-off of deferred financing
fees - - - 67.9
Change in fair value of third
party asset-backed
commercial paper 3.4 3.4 7.0 7.1
Share of loss from investments
subject to significant
influence 768.8 332.1 1,327.0 393.3
Future income taxes 2.8 (27.5) 10.0 (64.7)
Other (1.1) (0.3) (0.5) 12.3
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46.9 44.0 174.9 (41.3)
Net changes in non-cash asset
and liability items 4.7 29.7 (31.1) 77.8
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Cash flow provided by operating
activities 51.6 73.7 143.8 119.1
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Investing activities
Proceeds of disposal from the
retail sales segment - - 2,404.0
Investments (0.2) (25.0) (3.4) (66.0)
Purchase of property and equipment (8.2) (10.1) (49.2) (42.8)
Proceeds from disposal of property
and equipment - - 0.8 6.7
Other long-term assets (16.5) (7.4) (65.3) (9.9)
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Cash flow provided by (used in)
investing activities (24.5) (42.5) (117.1) 2,292.0
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Financing activities
Net change in revolving
credit facility, net of
costs (15.9) 9.8 105.5 163.9
Repayment of long-term debt (1.8) (0.3) (2.1)(2,381.4)
Issuance of capital stock - - - 0.7
Redemption of capital stock - (30.7) (91.4) (177.0)
Dividends (9.4) (10.0) (38.7) (38.5)
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Cash flow used in financing
activities (27.1) (31.2) (26.7)(2,432.3)
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Effect of foreign exchange
rate changes on cash
and cash equivalents - - - (114.6)
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Decrease in cash and cash
equivalents - - - (135.8)
Cash and cash equivalents,
beginning of period - - - 135.8
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Cash and cash equivalents,
end of period - - - -
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THE JEAN COUTU GROUP (PJC) INC.
Unaudited additional information
For the periods ended February 28, 2009 and March 1, 2008
(In millions of Canadian dollars except for margins)
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13 weeks 52 weeks

2009 2008 2009 2008
-------------------------------------------------------------------------
$ $ $ $
Canada
Sales 543.2 494.9 2,131.9 2,000.3
Cost of goods sold 495.0 449.3 1,944.4 1,818.5
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Gross profit 48.2 45.6 187.5 181.8
As a % of sales 8.9% 9.2% 8.8% 9.1%
Other revenues(1) 66.4 59.1 244.8 228.4

General and operating expenses 53.1 48.2 199.5 184.9
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Operating income before amortization 61.5 56.5 232.8 225.3
Amortization(1) 6.6 5.0 23.5 19.5
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Operating income 54.9 51.5 209.3 205.8
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(1) Amortization of incentives paid to franchisees is presented in
amortization instead of being applied against other revenues as
in the consolidated financial statements.



THE JEAN COUTU GROUP (PJC) INC.
Unaudited additional information
For the periods ended February 28, 2009 and March 1, 2008
(In millions of Canadian dollars)


Non-GAAP measures - Operating income before amortization ("OIBA") and OIBA before restructuring charges

OIBA and OIBA before restructuring charges are not measures of performance under Canadian generally accepted accounting principles ("GAAP"); however, management uses those performance measures in assessing the operating and financial performance of its reportable segments. Besides, we believe that OIBA and OIBA before restructuring charges are additional measures used by investors to evaluate operating performance and capacity of a company to meet its financial obligations.

However, OIBA and OIBA before restructuring charges are not and must not be used as alternatives to net earnings or cash flow generated by operating activities as defined by GAAP. OIBA and OIBA before restructuring charges are not necessarily indications that cash flow will be sufficient to meet our financial obligations. Furthermore, our definitions of OIBA and OIBA before restructuring charges may not be necessarily comparative to similar measures reported by other companies.

Net loss, which is a performance measure defined by GAAP, is reconciled hereunder with OIBA and OIBA before restructuring charges.



13 weeks 52 weeks

2009 2008 2009 2008
--------------------------------------------------------------------------
$ $ $ $

Net loss (733.6) (269.2) (1,192.1) (257.8)
Financing expenses 4.7 4.5 12.6 80.4
Adjustment to gain
(gain) on sale of the
retail sales segment - 0.5 - (139.9)
Loss on early debt
retirement - - - 178.9
Share of loss from
investments subject
to significant influence 768.8 332.1 1,327.0 393.3
Income taxes (recovery) 15.0 (16.4) 61.8 14.3
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Operating income 54.9 51.5 209.3 269.2
Amortization per
financial statements 4.2 4.0 16.1 15.5
Amortization of
incentives paid to
franchisees (1) 2.4 1.0 7.4 4.0
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Operating income
before amortization
("OIBA") 61.5 56.5 232.8 288.7
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Restructuring charges - - - 29.3
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OIBA before
restructuring
charges 61.5 56.5 232.8 318.0
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(1) Amortization of incentives paid to franchisees is applied against other
revenues in the consolidated financial statements.



THE JEAN COUTU GROUP (PJC) INC.
Unaudited additional information
For the periods ended February 28, 2009 and March 1, 2008
(In millions of Canadian dollars except per share amounts)


Non-GAAP measures - Loss before specific items or loss per share before specific items

Loss before specific items and loss per share before specific items are non-GAAP measures. The Company believes that it is useful for investors to be aware of significant items of an unusual or non recurring nature that have adversely or positively affected its GAAP measures, and that the above-mentioned non-GAAP measures provide investors with a measure of performance with which to compare its results between periods without regard to these items. The Company's measures excluding certain items have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation.

Net loss are reconciled hereunder to loss before specific items. All amounts are net of income taxes when applicable.



13 weeks 52 weeks

2009 2008 2009 2008
--------------------------------------------------------------------------
$ $ $ $

Net loss (733.6) (269.2) (1,192.1) (257.8)
Restructuring charges - - - 17.1
Reversal of
amortization of the
retail sales segment
in consolidation - - - (47.9)
Unrealized foreign
exchange losses (gain)
on monetary items (0.1) - 0.7 10.3
Unrealized losses
on derivative
financial instruments - - - 3.1
Adjustment to gain
(gain) on sale of the
retail sales segment - 0.4 - (72.7)
Loss on early
debt retirement - - - 125.0
Change in fair value
of third party
asset-backed
commercial paper 3.4 2.9 7.0 5.9
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Loss before
specific items (730.3) (265.9) (1,184.4) (217.0)
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Net loss per share are reconciled hereunder to loss per share before
specific items. All amounts are net of income taxes when applicable.

13 weeks 52 weeks

2009 2008 2009 2008
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$ $ $ $

Loss per share (3.11) (1.08) (4.92) (1.00)
Restructuring charges - - - 0.07
Reversal of amortization
of the retail sales segment
in consolidation - - - (0.18)
Unrealized foreign
exchange losses
on monetary items - - - 0.04
Unrealized losses on
derivative financial
instruments - - - 0.01
Adjustment to gain
(gain) on sale of the
retail sales segment - - - (0.28)
Loss on early
debt retirement - - - 0.48
Change in fair value
of third party
asset-backed
commercial paper 0.01 0.01 0.03 0.02
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Loss per share
before specific items (3.10) (1.07) (4.89) (0.84)
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Contact Information

  • Source: The Jean Coutu Group (PJC) Inc.
    Andre Belzile
    Senior Vice-President, Finance and Corporate Affairs
    450-646-9760
    or
    Information:
    Helene Bisson
    Senior Director, Communications
    450-646-9611, Ext. 1165