Thursday, May 10, 2012

CTC - <span class="simulate_din_font">Canadian Tire Announces First Quarter 2012 Results</span> (CAD 0.30)

Company: Canadian Tire Corporation Limited
Stock Name: CTC
Amount: CAD 0.30
Announcement Date: 10/05/2012
Record Date: 27/07/2012

Dividend Detail:





  • Strong sales and revenue growth


  • Consolidated revenue up 23.4%


  • Diluted earnings per share up 21.6%



TORONTO, May 10, 2012 /CNW/ - Canadian Tire Corporation, Limited
(TSX:CTC) (TSX:CTC.a) today released first quarter results for the
period ended March 31, 2012, which reflected strong revenue and
earnings growth compared to the first quarter of 2011.



Consolidated revenue increased 23.4% to $2.4 billion in the quarter,
reflecting the inclusion of FGL Sports acquired in August 2011, and
solid growth across the retail businesses including all major
categories within Canadian Tire Retail. Consolidated net income
increased 21.5% to $71.0 million compared to the same period in 2011
and diluted earnings per share increased 21.6% to $0.87 for the
quarter. Consolidated results reflected strong growth in Financial
Services, the inclusion of FGL Sports and a lower tax rate.



"We had a very good first quarter driven by strong retail sales growth
from all banners, including our most recent addition, FGL Sports, and
strong performance by Financial Services," said Stephen Wetmore,
President and CEO, Canadian Tire Corporation.









































































































Consolidated financial results

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(C$ in millions except per share amounts)

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Q1 2012

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Q1 2011

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Change

Retail sales

��

��

$

�������������� 2,421.2

��

��

$

�������������� 1,974.0

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22.7%

Revenue��

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��

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�������������������� 2,439.5

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�������������������� 1,976.2

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23.4%

Net income

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���������������������������� 71.0

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��������������������������58.4

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21.5%

Basic earnings per share

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���������������������������� 0.87

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���������������������������� 0.72

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21.5%

Diluted earnings per share

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���������������������������� 0.87

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���������������������������� 0.71

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21.6%





RETAIL



Consolidated retail sales rose 22.7% to $2.4 billion compared to the
same period last year both as a result of the inclusion of FGL Sports
and sales growth at all retail banners.



Retail sales at CTR increased 3.8% and same store sales were up 3.3%
compared to the same period last year. Favourable weather in March
drove strong sales in backyard living, cycling and gardening while
promotional activity throughout the quarter supported growth in kitchen
and household cleaning. The Automotive category continued to perform
well this quarter with sales growth in auto maintenance, car care, and
tires.



Canadian Tire Petroleum retail sales increased 5.2% compared to the
prior year, driven by a rise in fuel prices and additional sites
related to the 400 series highway initiative.



Mark's delivered strong growth this quarter as retail sales increased
7.1% and same store sales were up 5.8% over the prior year. The
majority of the increase came from sales growth in the industrial
apparel and footwear categories, particularly in the Prairie provinces
and Quebec.



FGL Sports had a strong start to the year with retail sales growth of
5.6% and same store sales growth of 7.0% versus the comparable period
in 2011. FGL Sports was well positioned for the early onset of spring
and saw sales growth in hard goods, apparel and footwear.



Revenue in the retail segment increased 26.5% to $2.2 billion in the
first quarter compared to the same period in 2011. Excluding FGL Sports
revenue of $341.8 million, retail revenue increased 6.7% driven by
growth across all banners. Income before taxes was down by $7.1 million
versus 2011. Revenue increases were offset by higher sales of lower
margin products, discounting of seasonal merchandise and planned first
quarter operating expense growth.



FINANCIAL SERVICES



Financial Services continued to be a strong contributor to the Company's
earnings in the first quarter. Revenue increased 2.6% to $241.7 million
versus the prior year due to higher interest income and fees related to
credit card receivables.



Financial Services income before taxes increased 43.8% to $73.0 million
due to increased revenue, a reduction in impairment loss on loans
receivable as a result of better aging and the continued management of
operating expenses.



CAPITAL EXPENDITURES



Capital expenditures for the first quarter were $64.1 million compared
to prior year spending of $53.7 million, primarily reflecting the
inclusion of FGL Sports capital expenditures.



QUARTERLY DIVIDEND



Canadian Tire Corporation has declared a quarterly dividend of 30 cents
per share on each Common and Class A Non-Voting share. The dividend is
payable September 1, 2012 to Common and Class A shareholders of record
as of July 31, 2012. The dividend is considered an "eligible dividend"
for tax purposes.



Please refer to Management's Discussion and Analysis for further detail
and information on the following charts.
























































































































































Consolidated financial results

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(C$ in millions except per share amounts)

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Q1 2012

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Q1 2011

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Retail sales

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$

�������������� 2,421.2

����$

�������������� 1,974.0

22.7%

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Revenue

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�������������������� 2,439.5

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�������������������� 1,976.2

23.4%

Gross margin

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�������������������������� 749.0

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�������������������������� 612.8

22.2%

Other income/(expense)

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�������������������������������� 3.9

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�������������������������������� 2.3

71.7%

Operating expenses

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�������������������������� 625.8

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�������������������������� 498.7

25.5%

EBITDA

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�������������������������� 206.4

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�������������������������� 182.1

13.4%

Net finance costs

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���������������������������� 29.6

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���������������������������� 34.0

(12.6)%

Tax rate

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27.3%

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29.2%

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Net income

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�������������������������� 71.0

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���������������������������� 58.4

21.5%

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Basic earnings per share

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�������������������������� 0.87

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���������������������������� 0.72

21.5%

Diluted earnings per share

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�������������������������� 0.87

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���������������������������� 0.71

21.6%
























































































Retail segment financial results

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(C$ in millions)

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Q1 2012

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Q1 2011

����������Change

Retail sales

$

�������������� 2,421.2

$

�������������� 1,974.0

22.7%

Revenue

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�������������������� 2,184.1

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�������������������� 1,726.5

26.5%

Gross margin

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�������������������������� 591.0

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�������������������������� 465.2

27.1%

Operating expenses (including depreciation and amortization)

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�������������������������� 551.2

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������������������������ 417.9

31.9%

EBITDA

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������������������������ 118.7

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������������������������ 112.8

5.3%

Depreciation and amortization

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�������������������������� 76.9

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�������������������������� 63.2

21.7%

Net finance costs

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�������������������������� 17.3

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�������������������������� 18.0

(3.2)%

Income before income taxes

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�������������������������� 24.5

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�������������������������� 31.6

(22.7)%

















































































































































































































































































Retail Segment - by banner

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(C$ in millions, except number of stores and gas bars)

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Q1 2012

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Q1 2011

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Change

CTR retail sales growth

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3.8%

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(0.6)%

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CTR same store sales growth

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3.3%

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(1.5)%

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CTR revenue

$

�������������� 1,184.8

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$

�������������� 1,103.7

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7.3%

Number of CTR stores

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������������������������������ 488

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���������������������������� 487

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Canadian Tire Petroleum retail sales growth

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5.2%

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15.8%

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Canadian Tire Petroleum gasoline volume (litres) growth

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(1.9)%

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4.2%

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Canadian Tire Petroleum revenue

$

�������������������� 469.7

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$

�������������������� 444.2

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5.7%

Canadian Tire Petroleum gross margin

$

������������������������ 32.0

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$

������������������������ 35.1

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(8.8)%

Number of gas bars

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������������������������������ 289

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���������������������������� 289

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FGL Sports retail sales growth

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5.6%

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n/a

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FGL Sports same store sales growth

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7.0%

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n/a

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FGL Sports revenue

$

�������������������� 341.8

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n/a

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Number of FGL Sports stores

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������������������������������ 506

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n/a

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Mark's retail sales growth

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7.1%

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6.2%

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Mark's same store sales growth

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5.8%

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6.2%

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Mark's revenue

$

�������������������� 191.5

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$��

������������������ 182.5

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4.9%

Number of Mark's stores

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������������������������������ 385

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���������������������������� 382

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Financial Services segment financial results

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(C$ in millions)

Q1 2012

Q1 2011

������������Change

Total gross average receivables

�������������������� 4,014.1

�������������������� 3,993.3

0.5%

Revenue

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�������������������������� 241.7

�������������������������� 235.4

2.6%

Gross margin

�������������������������� 130.2

�������������������������� 115.3

12.9%

Operating expenses

���������������������������� 59.2

���������������������������� 64.9

(8.8)%

Income before income taxes

���������������������������� 73.0

���������������������������� 50.8

43.8%





To view a PDF version of Canadian Tire Corporation's full quarterly
earnings report please see:

http://files.newswire.ca/116/Interim_Report_CTC.pdf






FORWARD-LOOKING STATEMENTS



This document contains forward-looking information that reflects
management's current expectations related to matters such as future
financial performance and operating results of the
Company.��Forward-looking statements are provided for the purposes of
providing information about management's current expectations and plans
and allowing investors and others to get a better understanding of our
financial position, results of operation and operating
environment.��Readers are cautioned that such information may not be
appropriate for other circumstances.



All statements other than statements of historical facts included in
this document may constitute forward-looking information, including but
not limited to, statements concerning management's expectations
relating to possible or assumed future prospects and results, our
strategic goals and priorities, our actions and the results of those
actions and the economic and business outlook for us. Often but not
always, forward-looking information can be identified by the use of
forward-looking terminology such as "may", "will", "expect", "believe",
"estimate", "plan", "could", "should", "would", "outlook", "forecast",
"anticipate", "foresee", "continue" or the negative of these terms or
variations of them or similar terminology.��Forward-looking information
is based on the reasonable assumptions, estimates, analysis and
opinions of management made in light of its experience and perception
of trends, current conditions and expected developments, as well as
other factors that management believes to be relevant and reasonable at
the date that such statements are made.



By its very nature, forward-looking information requires us to make
assumptions and is subject to inherent risks and uncertainties, which
give rise to the possibility that the Company's assumptions may not be
correct and that the Company's expectations and plans will not be
achieved. Although the Company believes that the forward-looking
information in this document is based on information and assumptions
which are current, reasonable and complete, this information is
necessarily subject to a number of factors that could cause actual
results to differ materially from management's expectations and plans
as set forth in such forward-looking information for a variety of
reasons.��Some of the factors - many of which are beyond our control and
the effects of which can be difficult to predict - include (a) credit,
market, currency, operational, liquidity and funding risks, including
changes in economic conditions, interest rates or tax rates; (b) the
ability of Canadian Tire to attract and retain quality employees,
Dealers, Canadian Tire Petroleum agents and PartSource, Mark's Work
Wearhouse and FGL Sports store operators and franchisees, as well as
our financial arrangements with such parties; (c) the growth of certain
business categories and market segments and the willingness of
customers to shop at our stores or acquire our financial products and
services; (d) our margins and sales and those of our competitors; (e)
risks and uncertainties relating to information management, technology,
supply chain, product safety, changes in law, competition, seasonality,
commodity price and business disruption, our relationships with
suppliers and manufacturers, changes to existing accounting
pronouncements, the risk of damage to the reputation of brands promoted
by Canadian Tire and the cost of store network expansion and retrofits
and (f) our capital structure, funding strategy, cost management
programs and share price.��We caution that the foregoing list of
important factors and assumptions is not exhaustive and other factors
could also adversely affect our results. Investors and other readers
are urged to consider the foregoing risks, uncertainties, factors and
assumptions carefully in evaluating the forward-looking information and
are cautioned not to place undue reliance on such forward-looking
information.



For more information on the risks, uncertainties and assumptions that
could cause the Company's actual results to differ from current
expectations, please refer to the "Risk Factors" section of our Annual
Information Form for fiscal 2011 and our 2011 Management's Discussion
and Analysis, as well as Canadian Tire's other public filings,
available at www.sedar.com and at www.corp.canadiantire.ca.



Statements that include forward-looking information do not take into
account the effect that transactions or non-recurring or other special
items announced or occurring after the statements are made have on the
Company's business.��For example, they do not include the effect of any
dispositions, acquisitions, asset write-downs or other charges
announced or occurring after such statements are made.



The forward-looking statements and information contained herein are
based on certain factors and assumptions as of the date hereof. The
Company does not undertake to update any forward-looking information,
whether written or oral, that may be made from time to time by it or on
its behalf, to reflect new information, future events or otherwise,
unless required by applicable securities laws.



CONFERENCE CALL



Canadian Tire will conduct a conference call to discuss information
included in this news release and related matters at 4:30 p.m. ET on
May 10, 2012. The conference call will be available simultaneously and
in its entirety to all interested investors and the news media through
a webcast at http://corp.canadiantire.ca/EN/investors, and will be available through replay at this website for 12 months.



ABOUT CANADIAN TIRE



Canadian Tire Corporation, Limited (TSX:CTC, TSX:CTC.a) is one of
Canada's most-shopped general retailers and the country's largest
sporting goods retailer, with more than 1,700 retail and gasoline
outlets from coast-to-coast. Our primary retail business categories -
Automotive, Living, Fixing, Sports, Playing and Apparel - are supported
and strengthened by our Financial Services division, which offers such
products and services as Canadian Tire Home Services, credit cards,
retail deposits, in-store financing, product warranties, and insurance.
Nearly 68,000 people are employed across the Canadian Tire enterprise,
which was founded in 1922 and remains one of Canada's most recognized
and trusted brands.








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PDF available at: http://stream1.newswire.ca/media/2012/05/10/20120510_C6188_DOC_EN_13527.pdf









For further information:

Media: Amy Cole, 416-544-7655,��amy.cole@cantire.com
Investors: Angela McMonagle, 416-480-8225��angela.mcmonagle@cantire.com









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