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

Company: Canadian Tire Corporation Limited
Stock Name: CTC
Amount: CAD 0.30
Announcement Date: 09/08/2012
Record Date: 29/10/2012

Dividend Detail:

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• 
  Consolidated retail sales up 14.9%
  


• 
  Consolidated revenue up 16.4%
  


• 
  Diluted earnings per share up 26.4%
  

TORONTO, Aug. 9, 2012 /CNW/ - Canadian Tire Corporation, Limited
(TSX:CTC) (TSX:CTC.a) today released second quarter results for the
period ended June 30, 2012, which reflected strong revenue and earnings
growth compared to the second quarter of 2011.

Consolidated revenue increased 16.4% to approximately $3 billion as a
result of the inclusion of FGL Sports revenue of $335.2 million, solid
sales growth across all retail businesses, and growth in Financial
Services' segment revenue. Consolidated net income increased 26.4% to
$133.7 million compared to the same period in 2011 and diluted earnings
per share increased 26.4% to $1.63 for the quarter. Net income included
$22.7 million of pre-tax costs associated with the FGL Sports banner
rationalization plan announced in the second quarter.

"Overall, we had a very strong quarter with solid revenue momentum and
improved margin performance in the Retail segment," said Stephen
Wetmore, President and CEO, Canadian Tire Corporation. "We continue to
focus on execution and are well positioned for the increasingly
competitive operating environment we expect in the second half of the
year."

Consolidated financial results

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(C$ in millions except per share amounts)

��

��

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Q2 2012��

��

�� Q2 2011

��

Change

��

YTD Q2 2012��

��

YTD Q2 2011

��

Change

Retail sales��

��

��

��

$��

3,481.6

��

$��

3,028.9

��

14.9%

��

$��

5,902.8

��

$��

5,002.9

��

18.0%

Revenue��

��

��

��

2,991.2

��

2,570.9

��

16.4%

��

5,430.7

��

4,547.1

��

19.4%

Net income��

��

��

��

133.7

��

105.8

��

26.4%

��

204.7

��

164.2

��

24.6%

Basic earnings per share��

��

��

��

1.64

��

1.30

��

26.4%

��

2.51

��

2.02

��

24.6%

Diluted earnings per share

��

��

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1.63

��

1.29

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26.4%

��

2.50

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2.01

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24.7%

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Retail

Retail sales and same store sales at Canadian Tire Retail were up in the
quarter with 1.0% and 0.4% increases respectively reflecting strong
sales in key seasonal categories and continued growth in the Living,
Fixing and Playing categories. Automotive experienced strong sales in
key seasonal categories such as car care and maintenance products;
however, auto service and related parts sales declined in the quarter
compared to the same period in 2011.

At Mark's, retail sales increased 6.1% and same store sales increased
4.2% driven by growth in all merchandising categories led by industrial
apparel and accessories sales, which were particularly strong in
Western Canada. Men's and women's seasonal apparel categories saw
significant growth, which was focused in its warm weather categories.

FGL Sports' retail sales increased 4.2% in the quarter over the
comparable period in the prior year. FGL Sports' saw a 4.8% same store
sales increase in the period due to strong sales in spring footwear and
apparel, led by branded athletic clothing, and solid hard goods
category sales including golf and equipment for team sports.

Revenue in the retail segment increased 17.8% in the quarter primarily
due to the inclusion of FGL Sports and solid growth in all other retail
banners.

Retail segment income before income taxes increased 17.3% to $115.3
million compared to the prior year as a result of sales growth across
all banners, margin rate improvements and the inclusion of FGL Sports.
Retail segment income before taxes included $22.7 million of costs
associated with the FGL Sports banner rationalization plan.

Financial Services

Financial Services' was a strong contributor to the Company's earnings
in the second quarter. Financial Services' income before income taxes
increased 41.6% in the quarter compared to the prior year. Strong
growth in income before taxes reflects higher revenues earned on credit
card receivables, lower loan loss expenses and tight control of
operating expenses.

Capital Expenditures

Capital expenditures for the second quarter were $68.8 million compared
to prior year spending of $58.9 million, 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 December 1, 2012 to Common and Class A shareholders of record
as of October 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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Q2 2012

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Q2 2011

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Change

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YTD Q2 2012

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YTD Q2 2011

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Change

Retail sales

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$

3,481.6

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$

3,028.9

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14.9%

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$

5,902.8

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$

5,002.9

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18.0%

Revenue

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2,991.2

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2,570.9

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16.4%

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5,430.7

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4,547.1

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19.4%

Gross margin

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895.5

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728.5

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22.9%

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1,644.5

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1,341.3

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22.6%

Other (expense) income

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(4.2)

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0.1

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n/a

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(0.3)

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2.4

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n/a

Operating expenses

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676.0

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548.8

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23.2%

��

��

1,301.8

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��

1,047.5

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24.3%

EBITDA

��

��

299.2

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��

247.8

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20.7%

��

��

505.6

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��

429.9

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17.6%

Depreciation and amortization

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83.9

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68.0

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23.4%

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��

163.2

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133.7

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22.1%

Net finance costs

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31.5

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33.2

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(5.5)%

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61.1

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67.2

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(9.1)%

Income before income taxes

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183.8

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146.6

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25.3%

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281.3

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229.0

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22.8%

Tax rate

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27.3%

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27.8%

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27.3%

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28.3%

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Net income

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133.7

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105.8

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26.4%

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204.7

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164.2

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24.6%

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Basic earnings per share

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1.64

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1.30

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26.4%

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��

2.51

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2.02

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24.6%

Diluted earnings per share

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��

1.63

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1.29

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26.4%

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��

2.50

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2.01

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24.7%

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Retail segment financial results

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(C$ in millions)

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Q2 2012

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Q2 2011

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Change

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YTD Q2 2012

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YTD Q2 2011

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Change

Retail sales

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$

3,481.6

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$

3,028.9

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14.9%

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$

5,902.8

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$

5,002.9

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18.0%

Revenue

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2,731.6

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2,318.3

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17.8%

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4,915.7

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��

4,044.8

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21.5%

Gross margin

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727.6

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580.1

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25.5%

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1,318.6

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1,045.3

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26.2%

Other (expense) income

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(4.7)

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0.3

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n/a

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(2.7)

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2.6

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n/a

Operating expenses

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588.9

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463.7

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27.0%

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1,140.1

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881.6

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29.3%

EBITDA

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215.5

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182.0

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18.3%

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��

334.2

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294.8

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13.3%

Depreciation and amortization

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81.5

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65.3

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24.8%

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158.4

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128.5

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23.3%

Net finance costs

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18.7

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18.5

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0.6%

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36.0

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36.5

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(1.3)%

Income before income taxes

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115.3

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98.2

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17.3%

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��

139.8

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129.8

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7.6%

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Retail segment - by banner

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

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Q2 2012

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Q2 2011

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Change

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YTD Q2 2012

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YTD Q2 2011

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Change

CTR retail sales growth

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1.0%

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2.0%

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2.0%

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1.0%

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CTR same store sales growth

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0.4%

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0.9%

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1.5%

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0.0%

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CTR revenue

$

1,651.3

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$

1,598.1

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3.3%

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$

2,836.1

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$

�� 2,701.8

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�� 5.0%

Number of CTR stores

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487

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487

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487

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487

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Canadian Tire Petroleum retail sales growth

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3.7%

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22.8%

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4.4%

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19.4%

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Canadian Tire Petroleum gasoline volume (litres) growth

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3.3%

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1.4%

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0.8%

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3.1%

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Canadian Tire Petroleum revenue

$

526.7

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$

511.6

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3.0%

��

$

996.4

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$

955.8

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4.2%

Canadian Tire Petroleum gross margin

$

38.0

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$

37.1

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2.4%

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$

70.0

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$

72.2

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(3.0)%

Number of gas bars

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291

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290

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291

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�������������������������� 290

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FGL Sports retail sales growth

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4.2%

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n/a

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4.9%

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n/a

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FGL Sports same store sales growth

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4.8%

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n/a

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5.8%

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n/a

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FGL Sports revenue

$

335.2

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n/a

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$

677.0

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n/a

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Number of FGL Sports stores

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501

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��

n/a

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501

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n/a

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Mark's retail sales growth

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6.1%

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0.5%

��

��

��

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6.6%

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3.0%

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��

��

Mark's same store sales growth

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4.2%

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��

0.1%

��

��

��

��

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5.0%

��

��

2.8%

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Mark's revenue

$

222.4

��

$

211.7

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��

5.1%

��

$

413.9

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$

394.2

��

��

5.0%

Number of Mark's stores

��

386

��

��

384

��

��

��

��

��

386

��

��

384

��

��

��

Financial Services segment financial results

��

��

��

��

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��

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��

��

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��

��

��

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(C$ in millions)

��

��

Q2 2012

��

��

Q2 2011

��

��

Change

��

��

YTD Q2 2012

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��

YTD Q2 2011��

��

��

Change

Total gross average receivables��

��

$

4,044.2

��

$

4,025.6

��

$

0.5%

��

$

4,029.2

��

$

4,009.5

��

$

0.5%

Revenue��

��

��

242.5

��

��

236.5

��

��

2.6%

��

��

484.2

��

��

471.9

��

��

2.6%

Gross margin��

��

��

136.1

��

��

115.3

��

��

18.0%

��

��

266.3

��

��

230.6

��

��

15.4%

Operating expenses

��

��

68.3

��

��

67.3

��

��

1.4%

��

��

127.5

��

��

132.2

��

��

(3.6)%

��Income before income taxes

��

��

68.5

��

��

48.4

��

��

41.6%

��

��

141.5

��

��

99.2

��

��

42.7%

��

To view a PDF version of Canadian Tire Corporation's full quarterly
earnings report please see: http://files.newswire.ca/116/Q22012IntrmRprtCTC.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, regulation, 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
August 9, 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://investors.canadiantire.ca, 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.

PDF available at: http://stream1.newswire.ca/media/2012/08/09/20120809_C5910_DOC_EN_16757.pdf

SOURCE: CANADIAN TIRE CORPORATION, LIMITED

For further information:

Media: Amy Cole, 416-544-7655,��amy.cole@cantire.com

Investors: Angela McMonagle, 416-480-8225,��angela.mcmonagle@cantire.com