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 $0.87 for the
 quarter. Consolidated results reflected strong growth in Financial
 Services, the inclusion of FGL Sports and a lower tax rate.
"We had a very good first quarter driven by strong retail sales growth
 from all banners, including our most recent addition, FGL Sports, and
 strong performance by Financial Services," said Stephen Wetmore,
 President and CEO, Canadian Tire Corporation.
| Consolidated financial results | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | 
| (C$ in millions except per share amounts) | �� | �� | �� | Q1 2012 | �� | �� | �� | Q1 2011 | �� | �� | Change | 
| Retail sales | �� | �� | $ | �������������� 2,421.2 | �� | �� | $ | �������������� 1,974.0 | �� | �� | 22.7% | 
| Revenue�� | �� | �� | �� | �������������������� 2,439.5 | �� | �� | �� | �������������������� 1,976.2 | �� | �� | 23.4% | 
| Net income | �� | �� | �� | ���������������������������� 71.0 | �� | �� | �� | ��������������������������58.4 | �� | �� | 21.5% | 
| Basic earnings per share | �� | �� | �� | ���������������������������� 0.87 | �� | �� | �� | ���������������������������� 0.72 | �� | �� | 21.5% | 
| Diluted earnings per share | �� | �� | �� | ���������������������������� 0.87 | �� | �� | �� | ���������������������������� 0.71 | �� | �� | 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 $53.7 million, primarily reflecting the
 inclusion of FGL Sports capital expenditures.
QUARTERLY DIVIDEND 
Canadian Tire Corporation has declared a quarterly dividend of 30 cents
 per share on each Common and Class A Non-Voting share. The dividend is
 payable September 1, 2012 to Common and Class A shareholders of record
 as of July 31, 2012. The dividend is considered an "eligible dividend"
 for tax purposes.
Please refer to Management's Discussion and Analysis for further detail
 and information on the following charts.
| Consolidated financial results | �� | �� | �� | �� | �� | �� | |||||
| (C$ in millions except per share amounts) | �� | �� | Q1 2012 | �� | Q1 2011 | ��������������������Change | |||||
| Retail sales | �� | $ | �������������� 2,421.2 | ����$ | �������������� 1,974.0 | 22.7% | |||||
| �� | �� | �� | �� | �� | �� | �� | �� | �� | |||
| Revenue | �� | �� | �� | �� | �������������������� 2,439.5 | �� | �������������������� 1,976.2 | 23.4% | |||
| Gross margin | �� | �� | �������������������������� 749.0 | �� | �������������������������� 612.8 | 22.2% | |||||
| Other income/(expense) | �� | �� | �������������������������������� 3.9 | �� | �������������������������������� 2.3 | 71.7% | |||||
| Operating expenses | �� | �� | �������������������������� 625.8 | �� | �������������������������� 498.7 | 25.5% | |||||
| EBITDA | �� | �� | �� | �� | �������������������������� 206.4 | �� | �������������������������� 182.1 | 13.4% | |||
| Net finance costs | �� | �� | ���������������������������� 29.6 | �� | ���������������������������� 34.0 | (12.6)% | |||||
| Tax rate | �� | �� | �� | �� | 27.3% | �� | 29.2% | �� | |||
| Net income | �� | �� | �������������������������� 71.0 | �� | ���������������������������� 58.4 | 21.5% | |||||
| �� | �� | �� | �� | �� | �� | �� | �� | �� | |||
| Basic earnings per share | �� | �� | �������������������������� 0.87 | �� | ���������������������������� 0.72 | 21.5% | |||||
| Diluted earnings per share | �� | �� | �������������������������� 0.87 | �� | ���������������������������� 0.71 | 21.6% | |||||
| Retail segment financial results | �� | �� | �� | �� | �� | |
| (C$ in millions) | �� | Q1 2012 | �� | Q1 2011 | ����������Change | |
| Retail sales | $ | �������������� 2,421.2 | $ | �������������� 1,974.0 | 22.7% | |
| Revenue | �� | �� | �������������������� 2,184.1 | �� | �������������������� 1,726.5 | 26.5% | 
| Gross margin | �� | �������������������������� 591.0 | �� | �������������������������� 465.2 | 27.1% | |
| Operating expenses (including depreciation and amortization) | �� | �������������������������� 551.2 | �� | ������������������������ 417.9 | 31.9% | |
| EBITDA | �� | �� | ������������������������ 118.7 | �� | ������������������������ 112.8 | 5.3% | 
| Depreciation and amortization | �� | �������������������������� 76.9 | �� | �������������������������� 63.2 | 21.7% | |
| Net finance costs | �� | �������������������������� 17.3 | �� | �������������������������� 18.0 | (3.2)% | |
| Income before income taxes | �� | �������������������������� 24.5 | �� | �������������������������� 31.6 | (22.7)% | |
| Retail Segment - by banner | �� | �� | �� | �� | �� | �� | �� | �� | �� | |
| (C$ in millions, except number of stores and gas bars) | �� | Q1 2012 | �� | �� | �� | �� | Q1 2011 | �� | Change | |
| CTR retail sales growth | �� | 3.8% | �� | �� | �� | �� | (0.6)% | �� | �� | |
| CTR same store sales growth | �� | 3.3% | �� | �� | �� | �� | (1.5)% | �� | �� | |
| CTR revenue | $ | �������������� 1,184.8 | �� | �� | �� | $ | �������������� 1,103.7 | �� | 7.3% | |
| Number of CTR stores | �� | ������������������������������ 488 | �� | �� | �� | �� | ���������������������������� 487 | �� | �� | |
| �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | �� | 
| Canadian Tire Petroleum retail sales growth | �� | 5.2% | �� | �� | �� | �� | 15.8% | �� | �� | |
| Canadian Tire Petroleum gasoline volume (litres) growth | �� | (1.9)% | �� | �� | �� | �� | 4.2% | �� | �� | |
| Canadian Tire Petroleum revenue | $ | �������������������� 469.7 | �� | �� | �� | $ | �������������������� 444.2 | �� | 5.7% | |
| Canadian Tire Petroleum gross margin | $ | ������������������������ 32.0 | �� | �� | �� | $ | ������������������������ 35.1 | �� | (8.8)% | |
| Number of gas bars | �� | ������������������������������ 289 | �� | �� | �� | �� | ���������������������������� 289 | �� | �� | |
| �� | �� | �� | �� | �� | �� | �� | �� | �� | ���� | �� | 
| FGL Sports retail sales growth | �� | 5.6% | �� | �� | �� | �� | n/a | �� | �� | |
| FGL Sports same store sales growth | �� | 7.0% | �� | �� | �� | �� | n/a | �� | �� | |
| FGL Sports revenue | $ | �������������������� 341.8 | �� | �� | �� | �� | n/a | �� | �� | |
| Number of FGL Sports stores | �� | ������������������������������ 506 | �� | �� | �� | �� | n/a | �� | �� | |
| �� | �� | �� | �� | �� | �� | �� | �� | �� | ���� | �� | 
| Mark's retail sales growth | �� | 7.1% | �� | �� | �� | �� | 6.2% | �� | �� | |
| Mark's same store sales growth | �� | 5.8% | �� | �� | �� | �� | 6.2% | �� | �� | |
| Mark's revenue | $ | �������������������� 191.5 | �� | �� | �� | $�� | ������������������ 182.5 | �� | 4.9% | |
| Number of Mark's stores | �� | ������������������������������ 385 | �� | �� | �� | �� | ���������������������������� 382 | �� | �� | |
| Financial Services segment financial results | �� | �� | �� | |
| (C$ in millions) | Q1 2012 | Q1 2011 | ������������Change | |
| Total gross average receivables | �������������������� 4,014.1 | �������������������� 3,993.3 | 0.5% | |
| Revenue | �� | �������������������������� 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.
��
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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