Stock Name: CTC
Amount: CAD 0.30
Announcement Date: 09/02/2012
Record Date: 26/04/2012
Dividend Detail:
Consolidated Revenue up 21.1% in Q4, up 12.7% for the full year 2011
Excluding a Q4 2010 tax settlement, EPS up 43.1% in Q4, up 17.4% for the
full year 2011
TORONTO, Feb. 9, 2012 /CNW/ - Canadian Tire Corporation, Limited (the
"Company") (TSX: CTC)(TSX: CTC.a) reported positive results for the
fourth quarter and full year 2011. The Company's results, as reported
in the attached unaudited interim financial statements, include the
operating results of FGL Sports (formerly The Forzani Group Ltd.) from
August 19, 2011 and the acquisition-related items.
FOURTH QUARTER
Consolidated revenues totalled $3.1 billion in the quarter, up 21.1%
over the fourth quarter of 2010, reflecting the inclusion of FGL Sports
and higher retail revenues across all banners. Diluted earnings per
share (EPS) were $2.03 in the quarter. EPS for the same period in 2010
were $2.07, including the positive impact of a tax settlement, which
amounted to approximately $0.67 per share. Normalizing for the tax
settlement, EPS were up 43.1% in the fourth quarter of 2011 versus Q4
2010.
FULL YEAR
Consolidated revenues totalled $10.4 billion for 2011, up 12.7% versus
2010 as a result of the inclusion of FGL Sports and higher revenues
across all retail banners. Diluted EPS for the full year totalled
$5.71, up 5.3% versus 2010. Normalizing for the Q4 2010 tax settlement,
EPS were up 17.4%.
"We're very pleased with our results for the quarter and the year," said
Stephen Wetmore, President and CEO, Canadian Tire Corp. "I think our
performance was strong despite unseasonable weather in many parts of
the country. As we begin 2012, our 90th anniversary, we are optimistic about the year ahead and I believe we
are pursuing the right priorities across the company to better serve
the needs of our customers."
Consolidated financial results | | | | | | | | | | | | | | | | | | | | | |
(C$ in millions except per share amounts) | | | | Q4 2011 | | | Q4 2010 | | | Change | | | | YTD 2011 | | | YTD 2010 | | | Change | |
Retail sales | | | $ | 3,707.8 | | $ | 3,064.3 | | | 21.0% | | | $ | 11,596.7 | | $ | 10,328.5 | | | 12.3% | |
Revenue | | | | 3,135.1 | | | 2,588.3 | | | 21.1% | | | | 10,387.1 | | | 9,213.1 | | | 12.7% | |
EBITDA | | | | 350.4 | | | 285.2 | | | 22.9% | | | | 1,058.2 | | | 996.6 | | | 6.2% | |
Net income | | | | 166.3 | | | 169.3 | | | (1.7)% | | | | 467.0 | | | 444.2 | | | 5.2% | |
Basic earnings per share | | | | 2.04 | | | 2.08 | | | (1.7)% | | | | 5.73 | | | 5.45 | | | 5.3% | |
Diluted earnings per share | | | | 2.03 | | | 2.07 | | | (1.7)% | | | | 5.71 | | | 5.42 | | | 5.3% | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
RETAIL SEGMENT SALES
Consolidated retail sales rose 21.0% in the quarter to $3.7 billion
versus Q4 2010. For the year, consolidated retail sales rose 12.3%
versus 2010 to $11.6 billion.
Retail sales at Canadian Tire Retail (CTR) increased 2.7% in the quarter
versus the same period in 2010 (2.0% for the full year in 2011). Same
store sales rose 1.8% in the quarter versus the same period in 2010
(1.1% for the full year in 2011). Sales in the quarter were strong in
key Living, Fixing and Playing categories, including kitchen, home
organization, paint and tools. Sales of winter tires, light automotive
parts and outdoor tools were negatively impacted by unseasonable
weather. While Automotive sales were down slightly in the quarter, the
category recorded positive growth for the full year.
At Mark's, retail sales grew by 3.1% in the quarter versus the same
period in 2010 (3.0% for the full year in 2011). Same store sales were
up 3.1% in the quarter versus the same period in 2010 (2.8% for the
full year in 2011). Sales in the quarter were driven by strong
industrial wear sales. The unseasonable weather negatively impacted
men's and women's casual wear sales and margins in the quarter and for
the year.
At FGL Sports, corporate same store sales rose 3.8% in the quarter while
franchise same store sales fell 5.0% in the fourth quarter compared to
the previous year predominantly as a result of unseasonable weather in
Quebec. Overall, same store sales at FGL Sports increased by 0.7% in
the quarter versus the same period in 2010 (2.6% since being acquired
in August, 2011). Retail sales increased 0.6% in the quarter versus
the same period in 2010 (2.3% since being acquired in August, 2011).
Retail sales at Canadian Tire Petroleum increased by 10.3% in the
quarter versus the same period in 2010 (19.0% for the full year in
2011) as a result of higher gas prices.
RETAIL SEGMENT OPERATING PERFORMANCE
Retail segment revenues in the quarter were $2.9 billion, an increase of
23.6% over the fourth quarter of 2010 (14.5% for the full year in
2011). Excluding FGL Sports, revenues grew 5.3% in the quarter versus
the same period in 2010 (6.6% for the full year in 2011). The reasons
for the revenue increases were similar to those outlined for retail
sales in the previous section.
Gross margin dollars increased 27.7% in the quarter versus the same
period last year (13.1% for the full year in 2011) predominantly as a
result of the inclusion of FGL Sports. Excluding FGL Sports items
(operating IBT and acquisition-related items), gross margin dollars
increased 1.0% in the quarter versus Q4 2010 (2.3% for the full year in
2011) as a result of higher revenues. Gross margin rate in the Retail
segment increased 88 basis points in the fourth quarter compared to the
prior year due mainly to the inclusion of FGL Sports. Excluding FGL
Sports items (operating IBT and acquisition-related items), the gross
margin rate was 108 basis points lower than the fourth quarter of 2010
(107 basis points lower for the full year in 2011). In the fourth
quarter, the gross margin rate was impacted largely by promotional
activity at Mark's to drive sales of casual wear in December. For the
year, the margin rate decline resulted from the higher contribution of
lower-margin Petroleum sales throughout the year and markdowns at
Mark's.
Operating expenses in the quarter increased 30.5% versus the fourth
quarter of 2010 (16.1% for the full year in 2011) primarily due to the
inclusion of FGL Sports. Excluding FGL Sports, operating expenses in
the Retail segment increased 2.2% in the quarter versus the fourth
quarter of 2010 (4.1% for the full year in 2011).
Income before taxes (IBT) in the Retail segment was $175.2 million in
the quarter, 13.5% higher than the same period in 2010. Excluding FGL
Sports items (operating IBT and acquisition-related items) and interest
income received in relation to the tax settlement in Q4 2010, IBT
increased 4.3%. The increase reflected higher revenues, partially
offset by lower margin contribution and slightly higher operating
expenses.
For the full year 2011, IBT in the Retail segment was $410.8 million, an
increase of 6.4% over 2010. Excluding FGL Sports items (operating IBT
and acquisition-related items) and interest income received in relation
to the tax settlement in 2010 and 2011, IBT in the Retail segment grew
by 1.2%.
The rolling 12-month retail return on invested capital (ROIC) was 7.68%
at the end of 2011, compared to 8.32% last year. The difference in ROIC
between the two years is predominantly due to the inclusion of the Q4
2010 tax settlement in the ROIC calculation.
FINANCIAL SERVICES SEGMENT
Financial Services had another successful quarter and year. Revenue
increased by 1.6% in the quarter versus Q4 2010 (flat for the full year
in 2011). As previously disclosed, Auto Club services results were included in
Financial Services in 2010 and are now reported in the Retail segment.
Gross margin dollars increased 0.4% in the quarter versus Q4 2010
(decreased 0.8% for the full year in 2011) as revenue increases were
partially offset by the effect of loan loss reserves released in 2010.
The rolling 12-month net write-off rate on the credit card loan
portfolio was 7.32%, down from 7.49% at the end of 2010.
Financial Services' operating expenses declined 15.9% in the quarter
versus Q4 2010 (6.2% for the full year in 2011).
Financial Services' income before taxes was $55.7 million, an increase
of 34.6% in the quarter versus the fourth quarter of 2010 (9.2% for the
full year in 2011) due to increased revenue and continued management of
operating expenses.
The rolling 12-month return on receivables was 5.45%, up from 4.97% from
2010.
CAPITAL EXPENDITURES
Capital expenditures in the fourth quarter of 2011 including FGL Sports
were $131.9 million versus $132.5 million in the prior year. For the
full year 2011, capital expenditures totalled $364.7 million compared
to $339.8 million in 2010. Excluding FGL Sports, capital spending was
in line with the 2011 target. Capital expenditures in 2012 are expected
to be in the range of $360 million to $385 million. Excluding FGL
Sports, capital spending in 2012 is expected to be in line with the
2011 target.
FUNDING AND LIQUIDITY
Canadian Tire enters 2012 in a strong financial position with ready
access to capital through diversified channels, including $1.37 billion
in committed lines of credit. Canadian Tire has no corporate medium
term notes maturing in 2012.
2011 REVIEW AND STRATEGIC OUTLOOK FOR 2012
In 2012 - our 90th anniversary - we will build on the progress made in 2011 in the
following key areas:
Strengthen Core Retail:
The Company has launched a number of initiatives to strengthen its core
retail business. In 2011, Canadian Tire Retail opened 66 Smart stores
in communities across Canada and launched four new-concept automotive
stores. The largest investments in store and automotive staff training
in the Company's history were rolled out and new, state-of-the-art
technologies were introduced to improve the customer experience both
on-line and in stores. For 2012, a new loyalty program will be
launched as a pilot offering customers more rewards and the Company
more opportunities to serve them better. The Company will continue to
roll out new Smart stores in communities across the country. Designed
to provide a more inspiring experience for customers, Smart stores
feature an enhanced Living department with a broader assortment of the
best products and brands Canadian Tire customers are looking for.
Build Strong Business Units and Reinforce the Core:
Canadian Tire's business units continued to improve and strengthen the
core in 2011. Mark's continued its rebranding and 16 stores were
completely redesigned to improve the customer experience. Its popular
e-commerce site was relaunched attracting higher than expected holiday
sales. Financial Services expanded its growing roster of payment
options by introducing the Equal Payment Plan to make large-ticket
purchases easier. Canadian Tire entered the Home Services market,
launching garage door opener and central vacuum system installation
services for the added convenience for customers. In 2012, Mark's
will continue to roll out new store formats across the country. The
Company will consider expansion of its Home Services offerings and new
financial products across the retail banners.
Build a High-Performing Organization and Boost Productivity:
Productivity and performance remained areas of focus for Canadian Tire
in 2011. Key functions of the Company continued to be centralized in a
shared services model resulting in streamlined and improved processes.
Important advancements were made in merchandise procurement, product
transportation and store operations to boost Canadian Tire's
productivity. Adoption of new design and technology in stores and
operations resulted in reduced energy use, costs and greenhouse gas
emissions. In 2012, the Company will continue to introduce initiatives
to maximize efficiencies and mitigate costs.
Create New Platforms for Growth:
FGL Sports was acquired by the Company in 2011 to create Canada's
ultimate authority in sports. FGL's strength in athletic apparel,
footwear and equipment complement the Company's strength in sporting
goods, making the acquisition an ideal fit. With over 1,000
sports-related retail locations across Canada, Canadian Tire
Corporation is able to serve the needs of sports lovers and athletes at
all skill levels. In 2012, FGL Sports will continue to drive sales,
expand the successful "store within a store" concept, seek innovative
new ways to connect with customers and realize the synergies identified
during the acquisition.
QUARTERLY DIVIDEND
Canadian Tire Corporation has declared a quarterly dividend of $0.30 per
share on each Common and Class A Non-Voting share. The dividend is
payable on June 1, 2012 to Common and Class A shareholders of record as
of April 30, 2012. The dividend is considered an "eligible dividend"
for tax purposes.
Consolidated financial results | | | | | | | | | | | | | | | | | | | | | | |
(C$ in millions except per share amounts) | | | | | Q4 2011 | | | Q4 2010 | | | Change | | | | YTD 2011 | | | YTD 2010 | | | Change | |
Retail sales | | | | $ | 3,707.8 | | $ | 3,064.3 | | | 21.0% | | | $ | 11,596.7 | | $ | 10,328.5 | | | 12.3% | |
Revenue | | | | | 3,135.1 | | | 2,588.3 | | | 21.1% | | | | 10,387.1 | | | 9,213.1 | | | 12.7% | |
Gross margin | | | | | 938.8 | | | 774.1 | | | 21.3% | | | | 3,060.7 | | | 2,791.0 | | | 9.7% | |
Operating expenses | | | | | 680.8 | | | 560.5 | | | 21.5% | | | | 2,317.0 | | | 2,069.6 | | | 12.0% | |
EBITDA | | | | | 350.4 | | | 285.2 | | | 22.9% | | | | 1,058.2 | | | 996.6 | | | 6.2% | |
Depreciation and amortization | | | | | 86.6 | | | 70.5 | | | 22.9% | | | | 296.1 | | | 274.1 | | | 8.1% | |
Net finance costs | | | | | 32.9 | | | 18.9 | | | 74.4% | | | | 132.2 | | | 135.7 | | | (2.6)% | |
Net income | | | | | 166.3 | | | 169.3 | | | (1.7)% | | | | 467.0 | | | 444.2 | | | 5.2% | |
Basic earnings per share | | | | | 2.04 | | | 2.08 | | | (1.7)% | | | | 5.73 | | | 5.45 | | | 5.3% | |
Diluted earnings per share | | | | | 2.03 | | | 2.07 | | | (1.7)% | | | | 5.71 | | | 5.42 | | | 5.3% |
Retail Segment financial results | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(C$ in millions) | | | | | | | | | Q4 2011 | | | Q4 2010 | | | Change | | | | | YTD 2011 | | | YTD 2010 | | | Change | |
Retail sales | | | | | | | | $ | 3,707.8 | | $ | 3,064.3 | | | 21.0% | | | | $ | 11,596.7 | | $ | 10,328.5 | | | 12.3% | |
Revenue | | | | | | | | | 2,874.9 | | | 2,325.9 | | | 23.6% | | | | | 9,363.5 | | | 8,178.9 | | | 14.5% | |
Gross margin | | | | | | | | | 783.9 | | | 613.8 | | | 27.7% | | | | | 2,446.7 | | | 2,162.7 | | | 13.1% | |
Operating expenses | | | | | | | | | 595.1 | | | 456.0 | | | 30.5% | | | | | 1,982.0 | | | 1,707.0 | | | 16.1% | |
EBITDA | | | | | | | | | 278.6 | | | 226.1 | | | 23.4% | | | | | 768.9 | | | 722.8 | | | 6.4% | |
Depreciation and amortization | | | | | | | | | 83.9 | | | 68.0 | | | 23.6% | | | | | 285.4 | | | 265.2 | | | 7.6% | |
Net finance costs | | | | | | | | | 19.5 | | | 3.6 | | | 449.4% | | | | | 72.7 | | | 71.4 | | | 1.8% | |
Income before income taxes | | | | | | | | | 175.2 | | | 154.5 | | | 13.5% | | | | | 410.8 | | | 386.2 | | | 6.4% |
Financial Services' financial results | | | | | | | | | | | | | | | | | | | | | | | | | | |
(C$ in millions) | | | | | | | | | Q4 2011 | | | Q4 2010 | | | Change | | | | YTD 2011 | | | YTD 2010 | | | Change | |
Total gross average receivables | | | | | | | | $ | 4,062.1 | | $ | 4,038.3 | | | 0.6% | | | $ | 4,035.5 | | $ | 4,041.2 | | | (0.1)% | |
Revenue | | | | | | | | | 241.6 | | | 237.8 | | | 1.6% | | | | 953.3 | | | 953.7 | | | 0.0% | |
Gross margin | | | | | | | | | 136.3 | | | 135.7 | | | 0.4% | | | | 543.7 | | | 547.8 | | | (0.8)% | |
Operating expenses | | | | | | | | | 67.1 | | | 79.9 | | | (15.9)% | | | | 264.7 | | | 282.1 | | | (6.2)% | |
EBITDA | | | | | | | | | 71.8 | | | 59.1 | | | 21.1% | | | | 289.3 | | | 273.8 | | | 5.6% | |
Depreciation and amortization | | | | | | | | | 2.7 | | | 2.5 | | | 4.2% | | | | 10.7 | | | 8.9 | | | 20.3% | |
Net finance costs | | | | | | | | | 13.4 | | | 15.3 | | | (12.6)% | | | | 59.5 | | | 64.3 | | | (7.5)% | |
Income before income taxes | | | | | | | | | 55.7 | | | 41.3 | | | 34.6% | | | | 219.1 | | | 200.6 | | | 9.2% |
Retail Segment - by banner | | | | | | | | | | | | | | | | | | | | | | | |
(C$ in millions, except number of stores and gas bars) | | | | | | Q4 2011 | | | Q4 2010 | | | Change | | | | YTD 2011 | | | YTD 2010 | | | Change | |
CTR retail sales growth1 | | | | | | 2.7% | | | 0.5% | | | | | | | 2.0% | | | 1.4% | | | | |
CTR same store sales growth2 | | | | | | 1.8% | | | (0.4)% | | | | | | | 1.1% | | | 0.7% | | | | |
CTR revenue3 | | | | | $ | 1,573.6 | | $ | 1,535.5 | | | 2.5% | | | $ | 5,771.5 | | $ | 5,676.4 | | | 1.7% | |
Number of CTR stores4 | | | | | | 488 | | | 485 | | | | | | | 488 | | | 485 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Mark's retail sales growth5 | | | | | | 3.1% | | | 1.9% | | | | | | | 3.0% | | | 3.7% | | | | |
Mark's same store sales growth6 | | | | | | 3.1% | | | 0.5% | | | | | | | 2.8% | | | 1.5% | | | | |
Mark's revenue7 | | | | | $ | 388.0 | | $ | 349.5 | | | 11.0% | | | $ | 979.5 | | $ | 872.6 | | | 12.3% | |
Number of Mark's stores4 | | | | | | 385 | | | 383 | | | | | | | 385 | | | 383 | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Canadian Tire Petroleum retail sales growth | | | | | | 10.3% | | | 12.4% | | | | | | | 19.0% | | | 10.2% | | | | |
Canadian Tire Petroleum gasoline volume (litres) growth | | | | | | (1.4)% | | | 5.3% | | | | | | | 2.1% | | | 1.6% | | | | |
Canadian Tire Petroleum revenue | | | | | $ | 490.9 | | $ | 444.0 | | | 10.6% | | | $ | 1,981.2 | | $ | 1,642.7 | | | 20.6% | |
Canadian Tire Petroleum gross margin | | | | | $ | 36.0 | | $ | 35.5 | | | 1.5% | | | $ | 146.8 | | $ | 139.0 | | | 5.7% | |
Number of gas bars | | | | | | 289 | | | 287 | | | | | | | 289 | | | 287 | | | |
1Includes sales from Canadian Tire stores, PartSource stores and the labour portion of CTR's auto service sales | ||||||||
2Includes sales from Canadian Tire and PartSouce stores. Starting in Q1 2011, CTR same store sales includes sales from the labour portion of CTR's auto service sales. The Q4 and full year 2010 same store sales metric has been restated to reflect the change in methodology. | ||||||||
3In 2011 certain vendor support funds at CTR are reflected as a reduction in inventory/cost of producing revenue (for the rebates provided by suppliers) and a corresponding reduction in revenue (for amounts passed through to Dealers). These amounts were previously offset. This decreased the fourth quarter revenue and cost of producing revenue by approximately $11.8 million with no impact on gross margin dollars of earnings. | ||||||||
4Store count numbers reflect individual selling locations, therefore both CTR and Mark's totals include stores that are co-located | ||||||||
5Includes retail sales from Mark's corporate stores and franchise stores and, commencing in 2010, ancillary revenue related to embroidery and alteration services. | ||||||||
6Excludes new stores, stores not open for 53 weeks, store closures and ancillary revenue | ||||||||
7Includes retail sales from Mark's corporate stores. In 2011 inventory transfers to Mark's franchisees are reflected as revenue with the corresponding inventory cost reflected in cost of producing revenue (previously only the franchise royalty was reflected in revenue). This increased revenue and cost of producing revenue by approximately $23.4 million with no impact to gross margin dollars or earnings. |
FGL Sports - sales metrics | | | | | | | | | | | | | | |
(C$ in millions, except number of stores) | | | Q4 2011 | | | | | | Aug 21, 2011 to December 31, 2011 | | | | ||
FGL Sports retail sales growth1 | | | 0.6% | | | | | | | 2.3% | | | | |
FGL Sports same store sales growth1 | | | 0.7% | | | | | | | 2.6% | | | | |
FGL Sports revenue2 | | $ | 426.1 | | | | | | $ | 645.6 | | | | |
Number of FGL Sports stores | | | 534 | | | | | | | 534 | | | | |
| | | | | | | | | | | | | | |
NORMAL COURSE ISSUER BID
Canadian Tire also announced that it intends to make a normal course
issuer bid (NCIB) to purchase from February 19, 2012 to February 18,
2013, through the facilities of the Toronto Stock Exchange (TSX),
certain of its outstanding Class A Non-Voting Shares. As at February 8,
2012, there were 78,020,208 Class A Non-Voting shares issued and
outstanding. The number of Class A Non-Voting Shares which may be
purchased during the period of the bid will not exceed 2.5 million
Class A Non-Voting Shares, which is approximately 3.3 percent of 75.3
million shares, the approximate public float of Class A Non-Voting
Shares issued and outstanding as of February 8, 2012.
Canadian Tire has a policy of purchasing Class A Non-Voting Shares to
offset the dilutive effects of the issuance of Class A Non-Voting
Shares pursuant to its deferred profit sharing plan, stock option plan
and dividend reinvestment plan, and the deferred profit sharing plan
for employees of Canadian Tire Dealers. Canadian Tire intends to
continue that policy. In addition, Canadian Tire may purchase
additional Class A Non-Voting Shares if the Board of Directors of
Canadian Tire determines, after consideration of market conditions and
Canadian Tire's financial flexibility and investment opportunities,
that a purchase of additional Class A Non-Voting Shares is an
appropriate means of enhancing the value of the remaining Class A
Non-Voting Shares.
The number of Class A Non-Voting Shares purchased by Canadian Tire
during 2011 pursuant to its NCIB was 191,396. The weighted average
price at which such purchases were made was $62.25 per Class A
Non-Voting Share, including commissions.
Any purchases made by Canadian Tire pursuant to the NCIB will be made in
accordance with the rules of the TSX and will be made at the market
price of the Class A Non-Voting Shares at the time of the acquisition.
No purchases (other than by way of exempt offers, exemption orders or
otherwise in accordance with applicable regulations of the TSX) will be
made except through open market transactions during the period the NCIB
is outstanding. Subject to any block purchases made in accordance with
the rules of the TSX, Canadian Tire will be subject to a daily
repurchase restriction of 57,217 Class A Non-Voting Shares, which
represents 25 percent of the average daily trading volume of Canadian
Tire's Class A Non-Voting Shares on the TSX for the six months ended
January 31, 2012. The Class A Non-Voting Shares acquired by Canadian
Tire pursuant to the NCIB will be restored to the status of authorized
and unissued shares.
Canadian Tire's NCIB is subject to regulatory approval.
To view a PDF version of Canadian Tire Corporation's full quarterly
earnings report please see: http://files.newswire.ca/116/CTCFinancialsandNotes.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 2010 and our 2010 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.
REVIEW BY BOARD OF DIRECTORS
The Canadian Tire Board of Directors, on the recommendation of its Audit
Committee, has approved the contents of this disclosure.
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. EST on
February 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://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, 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, Playing, Sports 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 with caption: "Canadian Tire Corporation's full quarterly earnings report". PDF available at: http://stream1.newswire.ca/media/2012/02/09/20120209_C2693_DOC_EN_9887.pdf
For further information:
Investors: Angela McMonagle, 416-480-8225angela.mcmonagle@cantire.com
Media: Rob Nicol, 416-480-8414robert.nicol@cantire.com
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