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

The Jean Coutu Group (PJC) Inc.

April 30, 2014 07:00 ET

The Jean Coutu Group-Fourth Quarter and Fiscal Year 2014 Results

LONGUEUIL, QUÉBEC--(Marketwired - April 30, 2014) - The Jean Coutu Group (PJC) Inc. (the "Corporation" or the "Jean Coutu Group") (TSX:PJC.A) reported its financial results today for the quarter ended March 1, 2014.

Summary of results

(Unaudited, in millions of Canadian dollars, except per share amounts)

Fiscal year
Q4 - 2014 Q4 - 2013 2014 2013
$ $ $ $
Revenues 685.4 682.7 2,733.3 2,739.5
Operating income before amortization ("OIBA") 87.5 81.6 334.5 323.0
Gains related to the investment in Rite Aid - - 212.7 348.0
Net profit 57.7 53.5 437.0 558.2
Per share 0.30 0.25 2.12 2.57
Net profit before gains related to the investment in Rite Aid and change in fair value of other financial assets (1) 57.7 53.5 224.3 211.3
Per share 0.30 0.25 1.09 0.97
1 See the "Non-IFRS financial measure" section.

Highlights

  • Operating income before amortization ("OIBA") increased by 7.2% for the fourth quarter of fiscal year 2014, despite the deflationary impact on pharmacy sales of a strong generic drugs penetration.

  • Net profit per share amounted to $0.30 during the fourth quarter of fiscal year 2014 compared to $0.25 for the same period of the previous fiscal year, a 20% increase.

  • Quarterly dividend increased by 17.6% to $0.10 per share.

  • The Toronto Stock Exchange accepted the notice of intention to purchase up to 8,190,000 of the Corporation's outstanding class "A" subordinate voting shares in the 12-month period ending May 6, 2015.

Financial results

"We are satisfied with the results of the fourth quarter and fiscal 2014 that demonstrate the solid performance of our organization despite a highly competitive environment. Our efficiency in implementing our business plan, together with our employees and the pharmacist owners affiliated to the Jean Coutu network, contributed to affirm our leadership," said François J. Coutu, President and Chief Executive Officer. "During the upcoming year, we expect to continue expanding our network and implement dynamic commercial strategies to ensure the evolution of our offer and favor retail sales growth."

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 $685.4 million during the quarter ended March 1, 2014, compared with $682.7 million in the quarter ended March 2, 2013. During fiscal year 2014, revenues amounted to $2,733.3 million compared with $2,739.5 million for the previous fiscal year, a decrease of 0.2%. This decrease is attributable to the deflationary impact on revenues of the significant volume increase in prescriptions of generic drugs compared with brand name drugs as well as the price reductions of generic drugs.

OIBA

OIBA increased by $5.9 million to $87.5 million during the quarter ended March 1, 2014 compared with $81.6 million for the quarter ended Mach 2, 2013. This increase is mainly attributable to a strong operational performance of the generic drugs segment as well as the negotiation of a retroactive credit of certain publicity costs recorded as a reduction of the general and operating expenses during the quarter ended March 1, 2014. OIBA as a percentage of revenues ended the fourth quarter of fiscal year 2014 at 12.8% compared with 12.0% for the same quarter of the previous fiscal year.

For fiscal year 2014, the Corporation's OIBA increased by $11.5 million amounting to $334.5 million compared with $323.0 million for fiscal year 2013. As a percentage of revenues, OIBA ended fiscal year 2014 at 12.2% compared with 11.8% for the previous fiscal year.

Pro Doc

Gross sales of Pro Doc drugs, net of intersegment eliminations, amounted to $49.1 million during the quarter ended March 1, 2014, compared with $43.5 million for the quarter ended March 2, 2013. Pro Doc's contribution to the consolidated OIBA amounted to $22.4 million during the quarter ended March 1, 2014, compared with $16.7 million for the quarter ended March 2, 2013. 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 2014 at 45.6% compared with 38.4% for the same period of the previous fiscal year.

For fiscal year 2014, gross sales of Pro Doc drugs, net of intersegments eliminations, amounted to $187.3 million compared with $161.0 million for fiscal year 2013. Pro Doc's contribution to the consolidated OIBA amounted to $80.4 million for fiscal year 2014, compared with $63.4 million for fiscal year 2013. Pro Doc's contribution to the consolidated OIBA as a percentage of gross sales, net of intersegment eliminations, ended fiscal year 2014 at 42.9% compared with 39.4% for the previous fiscal year.

Gains related to the investment in Rite Aid

During fiscal year 2014, the Corporation disposed of its 178,401,162 remaining common shares of Rite Aid. These shares were sold for a net consideration of $477.9 million. A gain of $212.7 million was reclassified from the consolidated statement of comprehensive income to the consolidated statement of income of the Corporation.

Net profit

Net profit amounted to $57.7 million ($0.30 per share) during the quarter ended March 1, 2014 compared with $53.5 million ($0.25 per share) for the quarter ended March 2, 2013. The increase in net profit is mainly attributable to a strong operational performance of the generic drugs segment.

Net profit during fiscal year 2014 amounted to $437.0 million ($2.12 per share) compared with $558.2 million ($2.57 per share) for fiscal year 2013. The decrease in net profit is attributable to gains of $212.7 million related to the investment in Rite Aid recognized during fiscal year 2014 compared with $348.0 million for fiscal year 2013. Net profit before gains related to the investment in Rite Aid and change in fair value of other financial assets amounted to $224.3 million ($1.09 per share) for fiscal year 2014 compared with $211.3 million ($0.97 per share) for the previous fiscal year. Basic profit per share before gains related to the investment in Rite Aid and change in fair value of other financial assets would have been $1.19 for fiscal year ended March 1, 2014 based on the number of outstanding shares as at March 1, 2014.

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.

During the quarter ended March 1, 2014, on a same-store basis, the PJC network's retail sales increased by 0.2%, pharmacy sales decreased by 0.1% and front-end sales decreased by 0.2%, compared with the corresponding period last year. Sales of non-prescription drugs, which represented 9.3% of total retail sales, decreased by 1.9% whereas these sales had increased by 4.8% for fiscal year 2013.

During fiscal year 2014, on a same-store basis, the PJC network's retail sales decreased by 0.1%, pharmacy sales decreased by 0.5% and front-end sales increased by 0.1% compared with the previous fiscal year. Sales of non-prescription drugs, which represented 8.9% of total retail sales, increased by 0.6% whereas these sales had increased by 2.9% during fiscal year 2013.

Generic drugs reached 67.2% of prescriptions during the fourth quarter of fiscal year 2014 compared with 63.2% of prescriptions 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. For the fourth quarter of fiscal year 2014 the introduction of new generic drugs reduced pharmacy's retail sales growth by 1.3% (1.9% for fiscal year 2014) and price reductions of generic drugs reduced the growth of those sales by 1.0% (1.0%$ for fiscal year 2014).

Fiscal year
Network performance (1)(unaudited) Q4 - 2014 Q4 - 2013 2014 2013
Retail sales (in millions of dollars) $1,057.2 $1,047.8 $4,059.9 $4,040.3
Retail sales growth (in percentage)
Total stores
Total 0.9 % 1.4 % 0.5 % 2.9 %
Pharmacy 0.6 % 0.9 % 0.1 % 3.2 %
Front-end (2) 0.5 % 2.2 % 0.7 % 2.3 %
Same store
Total 0.2 % 0.5 % (0.1 )% 2.0 %
Pharmacy (0.1 )% (0.1 )% (0.5 )% 2.2 %
Front-end (2) (0.2 )% 1.3 % 0.1 % 1.5 %
Prescriptions growth (in percentage)
Total stores 4.3 % 5.4 % 4.7 % 5.8 %
Same store 3.9 % 4.1 % 4.1 % 4.7 %
(1) Franchised outlets' retail sales are not included in the Corporation's consolidated financial statements.
(2) Front-end retail sales exclude sales of services which are included in the total retail sales growth.

PJC network of franchised stores expansion

During the fourth quarter of fiscal year 2014, there was 1 store relocation in the PJC network of franchised stores. Also, 1 store was significantly renovated.

During fiscal year 2014, there were 14 store openings in the PJC network of franchised stores, including 6 relocations, and the closing of 2 stores. Also, 14 stores were significantly renovated or expanded.

As of March 1, 2014, total selling square footage of the PJC network amounted to 3,096,000 square feet compared with 3,040,000 square feet as of March 2, 2013.

Issuer bids

On May 1, 2013, the Corporation announced its intention to repurchase for cancelation under a normal course issuer bid, when it is considered advisable, up to 8,917,000 of its outstanding Class "A" Subordinate Voting Shares. For the quarter ended March 1, 2014, the Corporation repurchased 749,200 Class "A" Subordinate Voting Shares at an average price of $19.22 per share for a total consideration of $14.4 million including related costs.

For fiscal year ended March 1, 2014, the Corporation repurchased under its normal course issuer bid 4,093,300 Class "A" Subordinate Voting Shares at an average price of $17.17 per share for a total consideration of $70.3 million including related costs. An amount of $48.6 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 during this period.

During the third quarter of fiscal year 2014, the Corporation also repurchased for cancellation 22 million of its Class "A" Subordinate Voting Shares at a price of $18.50 per share for a total consideration, including related costs, of $407.5 million under a substantial issuer bid. An amount of $299.8 million representing the excess of the purchase price over the carrying value of the repurchased shares was included in retained earnings for the 13-week period ended November 30, 2013.

As at March 1, 2014 the total number of Class "A" Subordinate Voting Shares issued was 85.2 million (100.0 million as at March 2, 2013) and the number of class "B" shares was 104.0 million (114.4 million as at March 2, 2013), for a total of 189.2 million shares issued (214.4 million as at March 2, 2013).

The Corporation announces today acceptance by the Toronto Stock Exchange of the notice of the Corporation's intention to repurchase 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 8,190,000 of its outstanding Class "A" subordinate voting shares, its only class of shares publicly traded, subject to a daily repurchase restriction of 56,011 shares, which represents 25% of the average daily trading volume for the six-month period prior to the date hereof (224,047 shares). Some of those purchases may be done through private arrangements at a price per share lower than the quoted market price, pursuant to an issuer bid exemption order issued by the "Autorité des Marchés Financiers". The number of shares the Corporation intends to repurchase represents approximately 10% of the outstanding current public float. As of April 29, 2014, 85,033,164 Class "A" subordinate voting shares were issued and outstanding, 81,998,284 of which shares were held by the public. The purchase of the Class "A" subordinate voting shares may be made pursuant to this notice in the 12-month period commencing May 7, 2014 and ending May 6, 2015. All Class "A" subordinate voting shares purchased pursuant to this notice will be cancelled.

Dividends

The Board of the Jean Coutu Group declared a quarterly dividend of $0.10 per share, an increase of 17.6%. This dividend will be paid on May 30, 2014, 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 16, 2014.

Furthermore, a special cash dividend of $0.50 per share was paid on December 2, 2013 to all Class "A" Subordinate Voting Shares and Class "B" shareholders listed in the Corporation's shareholder ledger on November 25, 2013.

Income tax deduction for donation to a charitable organization

On January 8, 2014, the Corporation acquired without consideration a tax deduction for donation to a charitable organization of $199.2 million from a company controlled by Mr. Jean Coutu. The current income tax saving of $53.6 million resulting from this tax deduction was recognized in contributed surplus during the 13-week period ended March 1, 2014.

Change on the Board of Directors

During the quarter, Mr. Dennis Wood left his directorship in the Corporation after more than nine years of service for a well-deserved retirement. It is with regret that the Board of Directors accepted his resignation. The Directors join the Corporation's management team to thank Mr. Wood for his contribution to the success of the Jean Coutu Group.

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 name drugs, will however have a deflationary impact on retail sales in the pharmacy section but the volume increase in the generic drugs operating segment will have a positive impact on the consolidated margins.

In fiscal year 2015, the Corporation plans to allocate approximately $137.4 million to capital expenditures and to banner developments costs including $96.8 million for the new distribution center and head office. As previously announced, this project which represents a total investment of approximately $190.0 million should be completed in fiscal year 2016. The Corporation plans to open 14 stores including 6 relocations, complete 32 store renovation and expansion projects, resulting in an expected total selling square footage of the network of 3,220,000 square feet at the end of fiscal year 2015.

Conference call

Financial analysts and investors are invited to attend the conference call on the fourth quarter of fiscal year 2014 financial results to be held on April 30, 2014, at 9:00 AM (ET). The call-in number is 514-861-2255 or toll free at 1-877-695-6175, access code 1123806 followed by hash tag (#). 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 May 31, 2014. The access code is 8391289 followed by hash tag (#).

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 413 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, which employs close to 20,000 people. Furthermore, the Jean Coutu Group owns Pro Doc Ltd ("Pro Doc"), a Québec-based subsidiary and manufacturer of generic drugs.

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 that were made by the Corporation 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 press release, 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", "should", "would", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. 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 nonrecurring 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 the Corporation's future operating results, financial position and cash flows and could cause its actual results to differ materially from those expressed in these forward-looking statements are 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 the Corporation operates, the intensity of competitive activity in the industry in which the Corporation operates, the supplier and brand reputations, the Corporation's 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 the Corporation's control. These and other factors could cause the Corporation's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied in those forward-looking statements.

Forward-looking statements are provided for the purpose of assisting in understanding the Corporation's financial position and results of operation and to present information about management's current expectations and plans relating to the future. Investors and others are thus cautioned that such statements may not be appropriate for other purposes and they should not place undue reliance on them. 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.Further details and descriptions of these and other factors are disclosed in the Corporation's Annual Information Form under "Risk Factors" and also in the "Critical accounting estimates", "Risks and uncertainties" and "Strategies and outlook" sections of the Corporation's annual management's discussion and analysis. The forward-looking statements in this press release reflect the Corporation's expectations as of the date hereof and are subject to change after such date. The Corporation expressly disclaims 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.
Condensed consolidated statements of income 13 weeks 52 weeks
For the periods ended March 1, 2014 and March 2, 2013 2014 2013 2014 2013
(unaudited, in millions of Canadian dollars, unless otherwise noted) $ $ $ $
Sales 615.7 613.3 2,459.2 2,468.0
Other revenues 69.7 69.4 274.1 271.5
685.4 682.7 2,733.3 2,739.5
Operating expenses
Cost of sales 535.4 536.5 2,137.5 2,169.0
General and operating expenses 62.5 64.6 261.3 247.5
Operating income before depreciation and amortization 87.5 81.6 334.5 323.0
Depreciation and amortization 8.4 8.2 32.5 31.7
Operating income 79.1 73.4 302.0 291.3
Financing expenses (revenues) - 0.1 (1.8 ) 2.2
Profit before the following items 79.1 73.3 303.8 289.1
Gains on sales of investment in Rite Aid - - 212.7 82.8
Unrealized gain related to the investment in Rite Aid - - - 265.2
Profit before income taxes 79.1 73.3 516.5 637.1
Income taxes 21.4 19.8 79.5 78.9
Net profit 57.7 53.5 437.0 558.2
Basic and diluted profit per share, in dollars 0.30 0.25 2.12 2.57
Condensed consolidated statements of comprehensive income 13 weeks 52 weeks
For the periods ended March 1, 2014 and March 2, 2013 2014 2013 2014 2013
(unaudited, in millions of Canadian dollars) $ $ $ $
.
Net profit 57.7 53.5 437.0 558.2
Other comprehensive income, net of taxes
Items that will not be reclassified subsequently to net profit:
Defined benefit plans remeasurements 0.8 (0.1 ) 0.8 -
Items that will be reclassified subsequently to net profit:
Available-for-sale financial asset:
Change in fair value - 128.7 171.9 40.8
Reclassification of gains on sales to net profit - - (212.7 ) -
0.8 128.6 (40.0 ) 40.8
Total comprehensive income 58.5 182.1 397.0 599.0
THE JEAN COUTU GROUP (PJC) INC.
Condensed consolidated statements of changes in equity
For the periods ended March 1, 2014 and March 2, 2013
(unaudited, in millions of Canadian dollars)
Capital
stock
Treasury
stock
Contributed
surplus
Investment
in Rite Aid
Retained
earnings
Total
equity
$ $ $ $ $ $
Balance at March 3, 2012 559.7 (1.0 ) 1.9 - 88.6 649.2
Net profit - - - - 558.2 558.2
Other comprehensive income - - - 40.8 - 40.8
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
Net profit - - - - 437.0 437.0
Other comprehensive income - - - (40.8 ) 0.8 (40.0 )
Total comprehensive income - - - (40.8 ) 437.8 397.0
Redemption of capital stock (129.4 ) (0.8 ) - - (348.4 ) (478.6 )
Dividends - - - - (164.9 ) (164.9 )
Share-based compensation cost - - 1.0 - - 1.0
Options exercised 14.4 - (1.2 ) - - 13.2
Tax deduction contribution - - 53.6 - - 53.6
Balance at March 1, 2014 422.1 (3.0 ) 55.1 - 457.9 932.1
THE JEAN COUTU GROUP (PJC) INC.
Condensed consolidated statements of financial position As at
March 1,
2014
As at
March 2,
2013
(unaudited, in millions of Canadian dollars) $ $
Current assets
Cash and temporary investment 74.3 20.0
Trade and other receivables 206.9 199.6
Inventories 189.8 190.1
Prepaid expenses 6.2 12.2
477.2 421.9
Non-current assets
Long-term receivables from franchisees 23.7 24.9
Investment in Rite Aid - 306.0
Investment in associates and joint ventures 13.6 8.3
Property and equipment 361.1 359.5
Investment property 24.7 17.4
Intangible assets 202.0 195.0
Goodwill 36.0 36.0
Deferred tax 11.3 11.2
Other long-term assets 15.0 12.5
Total assets 1,164.6 1,392.7
Current liabilities
Bank overdraft - 21.6
Trade and other payables 209.3 225.2
Income taxes payable 4.6 18.5
213.9 265.3
Non-current liabilities
Deferred tax 1.0 0.8
Other long-term liabilities 17.6 15.8
Total liabilities 232.5 281.9
Equity 932.1 1,110.8
Total liabilities and equity 1,164.6 1,392.7
THE JEAN COUTU GROUP (PJC) INC.
Condensed consolidated statements of cash flows 13 weeks 52 weeks
For the periods ended March 1, 2014 and March 2, 2013 2014 2013 2014 2013
(unaudited, in millions of Canadian dollars) $ $ $ $
Operating activities
Net profit 57.7 53.5 437.0 558.2
Adjustments:
Depreciation and amortization 8.4 8.2 32.5 31.7
Change in fair value of other financial assets - - - 1.1
Gains on sales of investment in Rite Aid - - (212.7 ) (82.8 )
Unrealized gain related to the investment in Rite Aid - - - (265.2 )
Interest expense (income) (0.2 ) - (3.6 ) 0.7
Income taxes 21.4 19.8 79.5 78.9
Others 1.7 2.5 3.1 6.1
89.0 84.0 335.8 328.7
Net change in non-cash asset and liability items (0.7 ) (3.8 ) (14.9 ) (21.9 )
Interest received (paid) 0.7 - 3.5 (0.8 )
Income taxes refund (paid) (1.7 ) (23.1 ) (40.0 ) (82.2 )
Cash flow related to operating activities 87.3 57.1 284.4 223.8
Investing activities
Receipts from other financial assets - - - 17.9
Proceeds from disposal of the investment in Rite Aid - - 477.9 82.8
Investments in an associate and in a joint venture (2.6 ) - (5.3 ) (2.7 )
Purchase of property and equipment (7.3 ) (4.3 ) (31.8 ) (20.9 )
Proceeds from disposal of property and equipment - - 1.6 1.1
Purchase of investment property - - (0.2 ) (0.1 )
Proceeds from disposal of investment property 1.1 0.5 1.7 4.1
Net change in long-term receivables from franchisees (2.0 ) 0.7 (1.9 ) (0.1 )
Purchase of intangible assets (0.7 ) - (18.0 ) (16.1 )
Cash flow related to investing activities (11.5 ) (3.1 ) 424.0 66.0
Financing activities
Net change in revolving credit facility - - - (149.8 )
Financing fees - - (0.3 ) (0.3 )
Issuance of capital stock 5.7 3.6 13.2 5.5
Redemption of capital stock and treasury stock (15.2 ) (25.2 ) (480.5 ) (81.0 )
Dividends paid (110.8 ) (15.0 ) (164.9 ) (60.8 )
Cash flow related to financing activities (120.3 ) (36.6 ) (632.5 ) (286.4 )
Net change in cash and cash equivalents (44.5 ) 17.4 75.9 3.4
Cash and cash equivalents, beginning of period 118.8 (19.0 ) (1.6 ) (5.0 )
Cash and cash equivalents, end of period 74.3 (1.6 ) 74.3 (1.6 )
THE JEAN COUTU GROUP (PJC) INC.
Unaudited additional informations
For the periods ended March 1, 2014 and March 2, 2013
(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 52 weeks
2014 2013 2014 2013
$ $ $ $
Net profit (1) 57.7 53.5 437.0 558.2
Gains on sales of investment in Rite Aid - - (212.7 ) (82.8 )
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 - - - 1.1
Net profit before gains related to the investment in Rite Aid and change in fair value of other financial assets 57.7 53.5 224.3 211.3
Basic profit per share 0.30 0.25 2.12 2.57
Gains on sales of investment in Rite Aid - - (1.03 ) (0.38 )
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 - - - -
Net profit per share before gains related to the investment in Rite Aid and change in fair value of other financial assets 0.30 0.25 1.09 0.97
(1) Readers are referred to Note 4 of the Corporation's audited Consolidated Financial Statements for the fiscal year 2014 for explanations of the changes in accounting policies affecting fiscal year 2013.

Contact Information

  • Source:
    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