LONGUEUIL, QUÉBEC--(Marketwired - May 1, 2013) - The Jean Coutu Group (PJC) Inc. (TSX:PJC.A) (the "Corporation" or the "Jean Coutu Group") reported its financial results today for the fourth quarter and fiscal year ended March 2, 2013.
SUMMARY OF RESULTS
(Unaudited, in millions of Canadian dollars, except per share amounts)
| Fiscal year | |||||
| Q4 - 2013 | Q4 - 2012 | 2013 | 2012 | ||
| 13 weeks | 14 weeks | 52 weeks | 53 weeks | ||
| $ | $ | $ | $ | ||
| Revenues | 682.7 | 737.2 | 2,739.5 | 2,733.1 | |
| Operating income before amortization ("OIBA") | 81.6 | 83.4 | 323.0 | 311.2 | |
| Gains related to the investment in Rite Aid | - | - | 348.0 | 22.0 | |
| Net profit | 53.6 | 62.0 | 558.4 | 230.0 | |
| Per share | 0.25 | 0.28 | 2.57 | 1.03 | |
| Net profit before gains related to the investment in Rite Aid and change in fair value of other financial assets (1) | 53.6 | 60.7 | 211.5 | 206.1 | |
| Per share | 0.25 | 0.27 | 0.97 | 0.92 | |
| (1) | See non-IFRS financial measure section. |
HIGHLIGHTS
- Operating income before amortization ("OIBA") increased by 3.8% for fiscal year ended March 2, 2013, despite the additional week in fiscal year 2012 and the deflationary impact of generic drugs on pharmacy sales.
- Quarterly dividend increased by 21.4% to $0.085 per share.
- The Corporation sold 72,500,000 common shares of Rite Aid in April 2013 for a net consideration of $162.1 million (US$158.5 million). Therefore, the gain of $54.4 million (US$49.7 million) will be reclassified to the consolidated statements of income in the first quarter of fiscal year 2014.
- The Toronto Stock Exchange accepted the notice of intention to purchase up to 8,917,000 of the Corporation's outstanding class "A" subordinate voting shares in the 12-month period ending May 6, 2014.
Financial results
"We are satisfied with the results of the fourth quarter and fiscal 2013 that demonstrate the solid operational performance of our organization in spite of the difficult regulatory environment in which our industry evolves. » said François J. Coutu, President and Chief Executive Officer. "During the upcoming year, we expect to continue expanding our network and we will be working together with our affiliated pharmacists to implement effective commercial strategies and thus favor retail sales growth."
Fiscal year
The Corporation's reporting calendar is based on the US National Retail Federation 4-5-4 merchandising calendar. Accordingly, the Corporation's fiscal year is usually 52 weeks in duration but includes a 53rd week every 5 to 6 years. The fiscal year ended March 2, 2013 contained 52 weeks while the fiscal year ended March 3, 2012 contained 53 weeks. The quarter ended March 2, 2013 contained 13 weeks compared with 14 weeks for the quarter ended March 3, 2012.
Revenues
Revenues consist mainly of sales and other revenues derived from franchising activities. Merchandise sales to PJC franchisees made mostly through our distribution centres account for the greater part of our revenues.
Revenues amounted to $682.7 million during the fourth quarter ended March 2nd, 2013, compared with $737.2 million in the quarter ended March 3rd, 2012. During the fiscal year 2013, revenues amounted to $2,739.5 million compared with $2,733.1 million for the 53-week period of previous fiscal year, an increase of 0.2%. This increase is attributable to overall market growth and the expansion of the PJC network of franchised stores, despite the additional week during the fourth quarter of fiscal year 2012, the deflationary impact on revenue due to the introduction of the generic version of some drugs as well as the price reductions of generic drugs.
OIBA
OIBA decreased by $1.8 million to $81.6 million for the fourth quarter ended March 2nd, 2013 compared with $83.4 million for the fourth quarter ended March 3rd, 2012. Despite a strong operational performance of the generic drugs segment as well as the franchising activities, this decrease is mainly attributable to the additional week during the fourth quarter of fiscal year 2012 as well as the reduction of generic drugs prices. OIBA as a percentage of revenues ended the fourth quarter of fiscal year 2013 at 12.0% compared with 11.3% for the same quarter of the previous fiscal year.
For fiscal year 2013, the Corporation's OIBA increased by $11.8 million amounting to $323.0 million compared with $311.2 million for the same period of fiscal year 2012. As a percentage of revenues, OIBA ended fiscal year 2013 at 11.8% compared with 11.4% for the same period of previous fiscal year.
Pro Doc
Gross sales of Pro Doc drugs, net of intersegments eliminations, amounted to $43.5 million during the quarter ended March 2nd, 2013, compared with $41.6 million for the quarter ended March 3rd, 2012. Pro Doc's contribution to the consolidated OIBA amounted to $16.7 million during the quarter ended March 2, 2013, compared with $17.3 million for the quarter ended March 3rd, 2012. Pro Doc's contribution to the consolidated OIBA as a percentage of gross sales, net of intersegment eliminations, ended the fourth quarter of fiscal year 2013 at 38.4% compared with 41.6% for the same period of the previous fiscal year.
For fiscal year 2013, gross sales of Pro Doc drugs, net of intersegments eliminations, amounted to $161.0 million compared with $148.3 million for fiscal year 2012. Pro Doc's contribution to the consolidated OIBA amounted to $63.4 million during fiscal year 2013, compared with $58.5 million for fiscal year 2012. Pro Doc's contribution to the consolidated OIBA as a percentage of gross sales, net of intersegment eliminations, ended fiscal year 2013 at 39.4%, same as for the previous fiscal year.
Gains related to the investment in Rite Aid
During fiscal year 2013, the Corporation sold 56,000,000 common shares of Rite Aid. Those shares were sold for a total consideration of $82.8 million, net of related costs. During previous fiscal year, the Corporation sold 17,574,100 common shares of Rite Aid for a total consideration of $22 million, net of related costs. These proceeds were recorded as a gain on investment since the carrying value of the investment in Rite Aid was previously written-off. Following the sale of those shares, the Corporation lost its significant influence over Rite Aid. Consequently, this investment, which was previously considered as an investment in an associate and accounted for under the equity method, is now considered as an available-for-sale investment and is accounted for at fair value. This change generated a non-cash gain of $265.2 million (US$267.6 million) in the Corporation's consolidated statement of income for fiscal year ended March 3rd, 2012 which was the fair value of the 178,401,162 common shares that the Corporation owned at the date of its loss of significant influence.
In accordance with the provisions of Rule 144 under the Securities Act of 1933, The Jean Coutu Group filed on April 15, 2013 a notice confirming its intent to dispose up to 72,500,000 of its 178,401,162 common shares of Rite Aid Corporation (" Rite Aid "). The Jean Coutu Group completed the sale of these 72,500,000 common shares as of April 16, 2013. These shares were sold at an average price of US$2.20 per share for a net proceed of $162.1 million (US$158.5 million). Consequently, these sales will generate the reclassification of a gain of $54.4 million (a gain of US$49.7 as well as a cumulated currency translation effect of $4.6 million) from the consolidated statements of comprehensive income to the consolidated statements of income during the first quarter of fiscal year 2014.
The sale of these shares brings the Corporation's interest in Rite Aid's outstanding common shares down to 11.7%. Following this transaction, the number of the Corporation's representatives on Rite Aid's Board of Directors decreased from 2 to 1 member, as stipulated in the stockholder agreement between the Corporation and Rite Aid.
Net profit
Net profit amounted to $53.6 million ($0.25 per share) during the quarter ended March 2nd, 2013 compared with $62.0 million ($0.28 per share) for the quarter ended March 3rd, 2012. The decrease in net profit is mainly attributable to the additional week in the fourth quarter of fiscal year 2012, despite a solid operational performance of the generic drugs segment and of the franchising activities.
Net profit amounted to $558.4 million ($2.57 per share) for fiscal year 2013 compared with $230.0 million ($1.03 per share) for fiscal year 2012. The increase in net profit is attributable to gains of $348 million related to the investment in Rite Aid during fiscal year ended March 2nd 2013 compared with a gain of $22 million for fiscal year 2012. Net profit before gains related to the investment in Rite Aid and change in fair value of other financial assets amounted to $211.5 million ($0.97 per share) for fiscal year ended March 2nd 2013 compared with $206.1 million ($0.92 per share) for the previous fiscal year.
Information on the PJC network of franchised stores
The Corporation carries on the franchising activity under the banners of PJC Jean Coutu, PJC Clinique, PJC Jean Coutu Santé and PJC Jean Coutu Santé Beauté, operates two distribution centres and coordinates several other services for the benefit of its franchisees.
On a same-store and comparable periods basis, the PJC network's retail sales grew by 0.5%, pharmacy sales decreased by 0.1% and front-end sales increased by 1.3% during the fourth quarter ended March 2nd, 2013, compared with the corresponding period last year. Sales of non-prescription drugs, which represented 9.5% of total retail sales, increased by 4.8% whereas these sales had increased by 3.2% for the corresponding period of fiscal year 2012.
During fiscal year ended March 2nd 2013, on a same-store and comparable periods basis, the PJC network's retail sales grew by 2.0%, pharmacy sales gained 2.2% and front-end sales increased by 1.5% compared with the corresponding period last year. The sales of non-prescription drugs, which represented 8.9% of total retail sales, increased by 2.9% for comparable periods, whereas these sales had increased by 3.5% for fiscal year 2012.
Generic drugs reached 63.2% of drugs prescriptions during the fourth quarter of fiscal year 2013 compared with 57.4% for the comparable period of the previous fiscal year. The increase in the number of generic drugs prescriptions with lower selling prices than brand name drugs had a deflationary impact on the pharmacy's retail sales. Therefore, for the fourth quarter of fiscal year 2013 the introduction of new generic drugs reduced pharmacy's retail sales growth by 2.9% (2.1% for fiscal year 2013) and price reductions of generic drugs reduced the growth of those sales by 1.4% (1.2% for fiscal year 2013).
| Quarter | Fiscal year | |||||||
| Q4 - 2013 | Q4 - 2012 | 2013 | 2012 | |||||
| Network performance (1)(unaudited) | 13 weeks | 14 weeks | 52 weeks | 53 weeks | ||||
| Retail sales (in millions of dollars) | $1,047.8 | $1,117.3 | $4,040.3 | $4,001.8 | ||||
| Retail sales growth (in percentage) (2) | ||||||||
| Total stores | ||||||||
| Total | 1.4 | % | 4.9 | % | 2.9 | % | 3.8 | % |
| Pharmacy | 0.9 | % | 5.1 | % | 3.2 | % | 3.7 | % |
| Front-end | 2.2 | % | 4.9 | % | 2.3 | % | 3.9 | % |
| Same store | ||||||||
| Total | 0.5 | % | 4.2 | % | 2.0 | % | 2.3 | % |
| Pharmacy | (0.1 | %) | 4.4 | % | 2.2 | % | 2.0 | % |
| Front-end | 1.3 | % | 4.2 | % | 1.5 | % | 2.6 | % |
| Prescriptions growth (in percentage)(2) | ||||||||
| Total stores | 5.4 | % | 6.5 | % | 5.8 | % | 7.3 | % |
| Same store | 4.1 | % | 5.7 | % | 4.7 | % | 5.5 | % |
| (1) | Franchised outlets' retail sales are not included in the Corporation's Consolidated Financial Statements. |
| (2) | Information on growth was established on a comparable number of weeks. |
PJC network of franchised stores expansion
During the third quarter of fiscal year 2013, there were 3 store openings in the PJC network of franchised stores, including 1 relocation.
During fiscal year 2013, there were 16 store openings in the PJC network of franchised stores, including 6 relocations, and the closing of 2 stores. Also, 12 stores were significantly renovated or expanded.
Total selling square footage of the PJC network amounted to 3,040,000 square feet as of March 2, 2013 compared with 2,966,000 square feet as of March 3, 2012.
Financing activities
On May 3, 2012, the Corporation announced its intention to repurchase for cancellation, when it is considered advisable, up to 9,398,000 of its outstanding Class "A" subordinate voting shares.
During the fourth quarter ended March 2nd, 2013, the Corporation repurchased 1,557,600 Class "A" subordinate voting shares at an average price of $15.36 per share for a total consideration of $24.0 million including related costs. An amount of $15.6 million representing the excess of the purchase price over the carrying value of the repurchased shares was included in retained earnings. For fiscal year ended March 2nd, 2013, the Corporation repurchased 5,436,400 Class "A" subordinate voting shares at an average price of $15.02 per share for a total consideration of $81.7 million including related costs. An amount of $52.6 million representing the excess of the purchase price over the carrying value of the repurchased shares was included in retained earnings. The shares repurchased during this period were cancelled except for 117,000 shares that were cancelled after March 2nd, 2013.
The Corporation announces today acceptance by the Toronto Stock Exchange of the notice of the Corporation's intention to purchase from time to time through the facilities of the Toronto Stock Exchange and in accordance with its requirements, if it is considered advisable, up to 8,917,000 of its outstanding Class "A" subordinate voting shares, its only class of shares publicly traded, subject to a daily repurchase restriction of 35,845 Class "A" subordinate voting shares, which represents 25% of the average daily trading volume for the six-month period prior to the date hereof. Some of those purchases may be done through private arrangements pursuant to an issuer bid exemption order issued by the "Autorité des Marchés Financiers". This number represents approximately 10% of the outstanding current public float. As of April 30, 2013, 99,989,498 Class "A" subordinate voting shares were issued and outstanding, 89,177,209 of which shares were held by the public. The purchase of the Class "A" subordinate voting shares shares may be made pursuant to this notice in the 12-month period commencing May 7, 2013 and ending May 6, 2014. All Class "A" subordinate voting shares purchased pursuant to this notice will be cancelled.
The Corporation has determined that the purchase of its Class "A" subordinate voting shares will allow it to continue optimizing its capital structure and creating long-term value for shareholders.
Dividend
The Board of the Jean Coutu Group declared a quarterly dividend of $0.085 per share, an increase of 21.4% from the previous quarter. This dividend will be paid on May 31st, 2013, to all holders of Class "A" subordinate voting shares and holders of Class "B" shares listed in the Corporation's shareholder ledger as of May 17th, 2013. This quarterly dividend represents $0.34 per share on an annual basis.
Strategies and outlook
With its operations and financial flexibility, the Corporation is very well positioned to capitalize on the growth in the drugstore retail industry. Demographic trends are expected to contribute to the growth in prescription drugs' consumption and to the increased use of pharmaceuticals as the primary intervention in individual healthcare. Management believes that these trends will continue and that the Corporation will maintain its growth in revenues through differentiation and quality of offering and service levels to its network of franchised stores, with a focus on sales growth, its real estate program and operating efficiency. The growth in the number of generic drugs' prescriptions, with lower selling prices than the branded drugs, will however have a deflationary impact on retail sales in the pharmacy section but our integration in generic drugs with Pro Doc will have a positive impact on the consolidated margins.
In fiscal 2014, the Corporation plans to allocate approximately $51 million to capital expenditures and to banner development costs. The Corporation plans to open or relocate 17 stores, complete 32 store renovation and expansion projects, resulting in an expected total selling square footage of the network of 3,145,000 square feet at the end of fiscal year 2014.
Conference call
Financial analysts and investors are invited to attend the fourth quarter and fiscal year 2013 results conference call to be held on May 1st, 2013, at 9:00 AM (ET). The call-in number is 514-861-2255 or toll free at 1-877-405-9213, access code 4210694 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 dialling 514-861-2272 or toll free at 1-800-408-3053 until June 1st, 2013. The access code is 7900146, followed by pound sign (#).
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 Corporation using the following link to the www.sedar.com website.
About The Jean Coutu Group
The Jean Coutu Group is one of the most trusted names in Canadian pharmacy retailing. The Corporation operates a network of 407 franchised stores located in the provinces of Québec, New Brunswick and Ontario under the banners of PJC Jean Coutu, PJC Clinique, PJC Santé and PJC Santé Beauté, and employs more than 19,000 people. Furthermore, the Jean Coutu Group owns Pro Doc Ltd ("Pro Doc"), a Québec-based subsidiary and manufacturer of generic drugs. The Corporation also holds an investment in Rite Aid Corporation ("Rite Aid") a national chain of drugstores in the United States with more than 4,600 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 Corporation's current expectations, estimates, projections and assumptions made by the Jean Coutu Group 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 Corporation's strategy for growth, costs, operating or financial results, are forward-looking statements. All statements other than statements of historical facts included in this MD&A, including statements regarding the prospects of the Corporation's industry and the Corporation'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", the negatives of these terms, the variations of them or the use of other similar terms. Although the Corporation 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 of cautionary statements 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, namely changes in the legislation or the regulatory environment as it relates to the sale of prescription drugs and the pharmacy exercise, the success of the Corporation's business model, changes in laws and regulations, or in their interpretations, changes to tax regulations and accounting pronouncements, the cyclical and seasonal variations in the industry in which we operate, the intensity of competitive activity in the industry in which we operate, the supplier and brand reputations, our equity interest in Rite Aid, our ability to attract and retain pharmacists, labour disruptions, including possibly strikes and labour protests, 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 Corporation's actual results to differ from current expectations, please also refer to the Corporation'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 Corporation's Annual Information Form under "Risk Factors" as well as in the "Critical Accounting Estimates", the "Risks and uncertainties" and the "Strategies and outlook" sections of the MD&A for the fiscal year ended March 2, 2013. 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 any other reason, unless required by the applicable securities laws.
THE JEAN COUTU GROUP (PJC) INC.
Condensed consolidated statements of income
| 13 weeks | 14 weeks | 52 weeks | 53 weeks | |||
| For the periods ended March 2, 2013 and March 3, 2012 | 2013 | 2012 | 2013 | 2012 | ||
| (unaudited, in millions of Canadian dollars, unless otherwisenoted) | $ | $ | $ | $ | ||
| Sales | 613.3 | 664.9 | 2,468.0 | 2,463.2 | ||
| Other revenues | 69.4 | 72.3 | 271.5 | 269.9 | ||
| 682.7 | 737.2 | 2,739.5 | 2,733.1 | |||
| Operating expenses | ||||||
| Cost of sales | 536.5 | 590.3 | 2,169.0 | 2,184.3 | ||
| General and operating expenses | 64.6 | 63.5 | 247.5 | 237.6 | ||
| Operating income before depreciation and amortization | 81.6 | 83.4 | 323.0 | 311.2 | ||
| Depreciation and amortization | 8.2 | 7.8 | 31.7 | 30.4 | ||
| Operating income | 73.4 | 75.6 | 291.3 | 280.8 | ||
| Financing expenses (revenus) | - | (0.6 | ) | 2.0 | 1.0 | |
| Profit before the following items | 73.4 | 76.2 | 289.3 | 279.8 | ||
| Gains on sales of investment in Rite Aid | - | - | 82.8 | 22.0 | ||
| Unrealized gain related to the investment in Rite Aid | - | - | 265.2 | - | ||
| Profit before income taxes | 73.4 | 76.2 | 637.3 | 301.8 | ||
| Income taxes | 19.8 | 14.2 | 78.9 | 71.8 | ||
| Net profit | 53.6 | 62.0 | 558.4 | 230.0 | ||
| Basic and diluted profit per share, in dollars | 0.25 | 0.28 | 2.57 | 1.03 | ||
Condensed consolidated statements of comprehensive income
| 13 weeks | 14 weeks | 52 weeks | 53 weeks | |||||||
| For the periods ended March 2, 2013 and | ||||||||||
| March 3, 2012 | 2013 | 2012 | 2013 | 2012 | ||||||
| (unaudited, in millions of Canadian dollars) | $ | $ | $ | $ | ||||||
| . | ||||||||||
| Net profit | 53.6 | 62.0 | 558.4 | 230.0 | ||||||
| Other comprehensive income | ||||||||||
| Defined benefit pension plans: | ||||||||||
| Actuarial losses | (0.2 | ) | (3.3 | ) | (0.2 | ) | (3.3 | ) | ||
| Pension plan asset limitation | - | 1.1 | - | 1.1 | ||||||
| Available-for-sale financial asset: | ||||||||||
| Change in fair value of investment in Rite Aid | 128.7 | - | 40.8 | - | ||||||
| Income taxes on the above items | - | 0.6 | - | 0.6 | ||||||
| 128.5 | (1.6 | ) | 40.6 | (1.6 | ) | |||||
| Total comprehensive income | 182.1 | 60.4 | 599.0 | 228.4 | ||||||
THE JEAN COUTU GROUP (PJC) INC.
Condensed consolidated statements of changes in equity
| For the periods ended March 2, 2013 and March 3, 2012 |
| (unaudited, in millions of Canadian dollars) |
| Capital stock | Treasury stock | Contributed surplus | Change in fair value of the investment in Rite Aid | Retained earnings (deficit) | Total equity | |||||||
| $ | $ | $ | $ | $ | $ | |||||||
| Balance at February 26, 2011 | 614.4 | - | 1.4 | - | (17.5 | ) | 598.3 | |||||
| Net profit | - | - | - | - | 230.0 | 230.0 | ||||||
| Other comprehensive income | - | - | - | - | (1.6 | ) | (1.6 | ) | ||||
| Total comprehensive income | - | - | - | - | 228.4 | 228.4 | ||||||
| Redemption of capital stock | (55.5 | ) | (1.0 | ) | - | - | (68.6 | ) | (125.1 | ) | ||
| Dividends | - | - | - | - | (53.8 | ) | (53.8 | ) | ||||
| Share-based compensation cost | - | - | 0.6 | - | 0.1 | 0.7 | ||||||
| Options exercised | 0.8 | - | (0.1 | ) | - | - | 0.7 | |||||
| Balance at March 3, 2012 | 559.7 | (1.0 | ) | 1.9 | - | 88.6 | 649.2 | |||||
| Net profit | - | - | - | - | 558.4 | 558.4 | ||||||
| Other comprehensive income | - | - | - | 40.8 | (0.2 | ) | 40.6 | |||||
| Total comprehensive income | - | - | - | 40.8 | 558.2 | 599.0 | ||||||
| Redemption of capital stock | (29.1 | ) | (1.2 | ) | - | - | (52.6 | ) | (82.9 | ) | ||
| Dividends | - | - | - | - | (60.8 | ) | (60.8 | ) | ||||
| Share-based compensation cost | - | - | 0.8 | - | - | 0.8 | ||||||
| Options exercised | 6.5 | - | (1.0 | ) | - | - | 5.5 | |||||
| Balance at March 2, 2013 | 537.1 | (2.2 | ) | 1.7 | 40.8 | 533.4 | 1,110.8 | |||||
THE JEAN COUTU GROUP (PJC) INC.
Condensed consolidated statements of financial position
| As at | As at | ||
| March 2, | March 3, | ||
| 2013 | 2012 | ||
| (unaudited, in millions of Canadian dollars) | $ | $ | |
| Current assets | |||
| Temporary investment | 20.0 | - | |
| Trade and other receivables | 199.6 | 206.5 | |
| Inventories | 190.1 | 166.2 | |
| Income taxes recoverable | - | 0.2 | |
| Prepaid expenses | 12.2 | 12.9 | |
| 421.9 | 385.8 | ||
| Non-current assets | |||
| Long-term receivables from franchisees | 24.9 | 33.4 | |
| Other financial assets | - | 19.0 | |
| Investment in Rite Aid | 306.0 | - | |
| Investment in associates and joint venture | 8.3 | 6.9 | |
| Property and equipment | 359.5 | 361.1 | |
| Investment property | 17.4 | 20.5 | |
| Intangible assets | 195.0 | 186.9 | |
| Goodwill | 36.0 | 36.0 | |
| Deferred tax | 11.2 | 12.6 | |
| Other long-term assets | 12.5 | 10.6 | |
| Total assets | 1,392.7 | 1,072.8 | |
| Current liabilities | |||
| Bank overdraft | 21.6 | 5.0 | |
| Trade and other payables | 225.2 | 230.6 | |
| Income taxes payable | 18.5 | 23.2 | |
| Short term portion of long-term debt | - | 149.9 | |
| 265.3 | 408.7 | ||
| Non-current liabilities | |||
| Deferred tax | 0.8 | 1.0 | |
| Other long-term liabilities | 15.8 | 13.9 | |
| Total liabilities | 281.9 | 423.6 | |
| Equity | 1,110.8 | 649.2 | |
| Total liabilities and equity | 1,392.7 | 1,072.8 | |
THE JEAN COUTU GROUP (PJC) INC.
Condensed consolidated statements of cash flows
| 13 weeks | 14 weeks | 52 weeks | 53 weeks | ||||||
| For the periods ended March 2, 2013 and March 3, 2012 | 2013 | 2012 | 2013 | 2012 | |||||
| (unaudited, in millions of Canadian dollars) | $ | $ | $ | $ | |||||
| Operating activities | |||||||||
| Net profit | 53.6 | 62.0 | 558.4 | 230.0 | |||||
| Adjustments for: | |||||||||
| Depreciation and amortization | 8.2 | 7.8 | 31.7 | 30.4 | |||||
| Change in fair value of other financial assets | - | (1.3 | ) | 1.1 | (1.9 | ) | |||
| Gains on sales of investment in Rite Aid | - | - | (82.8 | ) | (22.0 | ) | |||
| Unrealized gain related to the investment in Rite Aid | - | - | (265.2 | ) | - | ||||
| Interest on long-term debt | - | 0.6 | 0.7 | 2.8 | |||||
| Income taxes | 19.8 | 14.2 | 78.9 | 71.8 | |||||
| Others | 2.4 | 2.5 | 5.9 | 3.8 | |||||
| 84.0 | 85.8 | 328.7 | 314.9 | ||||||
| Net change in non-cash asset and liability items | (3.8 | ) | 8.8 | (21.9 | ) | 16.7 | |||
| Interest paid on long-term debt | - | (0.6 | ) | (0.8 | ) | (2.8 | ) | ||
| Income taxes paid | (23.1 | ) | (20.3 | ) | (82.2 | ) | (83.8 | ) | |
| Cash flow related to operating activities | 57.1 | 73.7 | 223.8 | 245.0 | |||||
| Investing activities | |||||||||
| Receipts from other financial assets | - | - | 17.9 | 5.9 | |||||
| Proceeds from disposal of the investment in Rite Aid | - | - | 82.8 | 22.0 | |||||
| Purchase of property and equipment | (4.3 | ) | (8.1 | ) | (20.9 | ) | (24.9 | ) | |
| Proceeds from disposal of property and equipment | - | - | 1.1 | 2.2 | |||||
| Purchase of investment property | - | - | (0.1 | ) | (0.3 | ) | |||
| Proceeds from disposal of investment property | 0.5 | 0.4 | 4.1 | 2.7 | |||||
| Net change in long-term receivables from franchisees | 0.7 | (0.3 | ) | (0.1 | ) | (3.4 | ) | ||
| Purchase of intangible assets | - | (8.0 | ) | (16.1 | ) | (22.7 | ) | ||
| Others | - | (0.4 | ) | (2.7 | ) | 1.6 | |||
| Cash flow related to investing activities | (3.1 | ) | (16.4 | ) | 66.0 | (16.9 | ) | ||
| Financing activities | |||||||||
| Net change in revolving credit facility | - | (15.0 | ) | (149.8 | ) | (34.9 | ) | ||
| Financing fees | - | - | (0.3 | ) | (1.3 | ) | |||
| Issuance of capital stock | 3.6 | 0.2 | 5.5 | 0.7 | |||||
| Redemption of capital stock and treasury stock | (25.2 | ) | (14.5 | ) | (81.0 | ) | (127.3 | ) | |
| Dividends paid | (15.0 | ) | (13.1 | ) | (60.8 | ) | (53.8 | ) | |
| Cash flow related to financing activities | (36.6 | ) | (42.4 | ) | (286.4 | ) | (216.6 | ) | |
| Net change in cash and cash equivalents | 17.4 | 14.9 | 3.4 | 11.5 | |||||
| Cash and cash equivalents, beginning of period | (19.0 | ) | (19.9 | ) | (5.0 | ) | (16.5 | ) | |
| Cash and cash equivalents, end of period | (1.6 | ) | (5.0 | ) | (1.6 | ) | (5.0 | ) | |
THE JEAN COUTU GROUP (PJC) INC.
Unaudited additional informations
For the periods ended March 2, 2013 and March 3, 2012
(in millions of Canadian dollars, except per share amounts)
Non-IFRS financial measure
Net profit (or net profit per share) before gains related to the investment in Rite Aid and change in fair value of other financial assets is a non-IFRS measure. The Corporation 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 the IFRS measures applied by the Corporation, and that the above-mentioned non-IFRS measure provides investors with a performance measure to compare the results between periods with no regards to these items. The Corporation's measure excluding certain items has no standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other corporations. Therefore, it should not be considered in isolation.
Net profit and basic profit per share are reconciled hereunder to net profit (or net profit per share) before gains related to the investment in Rite Aid and change in fair value of other financial assets. All amounts are net of income taxes when applicable.
| 13 weeks | 14 weeks | 52 weeks | 53 weeks | ||||
| 2013 | 2012 | 2013 | 2012 | ||||
| $ | $ | $ | $ | ||||
| Net profit | 53.6 | 62.0 | 558.4 | 230.0 | |||
| Gains on sales of investment in Rite Aid | - | - | (82.8 | ) | (22.0 | ) | |
| Unrealized gain related to the investment in Rite Aid | - | - | (265.2 | ) | - | ||
| Change in fair value of third party asset-backed commercial paper and related options of repayment | - | (1.3 | ) | 1.1 | (1.9 | ) | |
| Net profit before gains related to the investment in Rite Aid and change in fair value of other financial assets | 53.6 | 60.7 | 211.5 | 206.1 | |||
| Basic profit per share | 0.25 | 0.28 | 2.57 | 1.03 | |||
| Gains on sales of investment in Rite Aid | - | - | (0.38 | ) | (0.10 | ) | |
| Unrealized gain related to the investment in Rite Aid | - | - | (1.22 | ) | - | ||
| Change in fair value of third party asset-backed commercial paper and related options of repayment | - | (0.01 | ) | - | (0.01 | ) | |
| Net profit per share before gains related to the investment in Rite Aid and change in fair value of other financial assets | 0.25 | 0.27 | 0.97 | 0.92 |
Contact Information:
The Jean Coutu Group (PJC) Inc.
Andre Belzile
Senior Vice-President, Finance and Corporate Affairs
(450) 646-9760
Information:
Helene Bisson
Vice-President, Communications
(450) 646-9611, Ext. 1165