Results
For the year ended
For the year ended
During the year ended
The Company determined that it met the eligibility criteria and applied for the Canadian Emergency Wage Subsidy (CEWS) during the year ended
The variation in adjusted net earnings would be
($ in thousands) | |||||||||
January 31, 2021 | |||||||||
Net earnings | 54 842 | 36 034 | |||||||
Gain on disposal of fixed assets (after-tax) | - | (1 048) | |||||||
CEWS (after-tax) | (5 759) | - | |||||||
Variation in cost of options (after-tax) | - | (87) | |||||||
Adjusted net earnings | 49 083 | 34 899 | |||||||
Minus : adjusted net earnings for 2020 | 34 899 | ||||||||
Variation | 14 184 |
This variation in adjusted net earnings is allocated throughout the quarters as follows:
($ in thousands) | |||
Increase (decrease) in | Increase (decrease) | Increase (decrease) in | |
784 | (9 695) | (8 911) | |
1 707 | 4 416 | 6 123 | |
7 897 | (1 616) | 6 281 | |
4 905 | (1 616) | 10 691 | |
Total | 15 293 | (1 109) | 14 184 |
Despite the significant drop in sales during the year ended
Annual financial information
($ in thousands, except for per share amounts)
Revenue | 649 056 | 720 169 | ||
Net earnings | 54 842 | 36 034 | ||
Total assets | 450 207 | 382 040 | ||
Net earnings per share | ||||
Basic and diluted | 1,61 | 1,05 | ||
Dividends per share | 0,29 | 0,28 | ||
Financial position and dividends
Cash, net of the bank overdraft, and investments increased by
As at
Pursuant to the normal course issuer-bid put in place on
During the year ended
During the fiscal year ended
Quarterly results
($ in thousands, except for per share amounts)
2020 | 2019 | 2020 | 2019 | ||
Revenue | 100 445 | 150 310 | 175 973 | 215 067 | |
Net (loss) earnings | (12 427) | (3 455) | 19 579 | 13 480 | |
Net (loss) earnings per share | |||||
Basic and diluted | (0,36) | (0,10) | 0,57 | 0,39 |
|
|
|
| ||
Revenue | 194 342 | 183 312 | 178 286 | 171 480 | |
Net earnings | 20 775 | 10 649 | 26 915 | 15 360 | |
Net earnings per share | |||||
Basic and diluted | 0,61 | 0,31 | 0,79 | 0,45 |
For the three-month period ended
For the three-month period ended
During the year ended
The Company determined that it met the eligibility criteria and applied for the Canadian Emergency Wage Subsidy (CEWS) during the quarter ended
The variation in adjusted net earnings would be
($ in thousands) | |||||||||
January 31, 2021 | |||||||||
Net earnings | 26 915 | 15 360 | |||||||
Gain on disposal of fixed assets (after-tax) | - | (1 048) | |||||||
CEWS (after-tax) | (1 912) | - | |||||||
Adjusted net earnings | 25 003 | 14 312 | |||||||
Minus : adjusted net earnigs for the 2020 period | 14 312 | ||||||||
Variation | 10 691 |
Operations
The Company continues to restructure all of its websites and the first phase of the implementation of a distinct e-commerce platform for its banners Brault &
Brault & Martineau Division
On
The Company continues the evaluation process for different sites as well as its existing stores to modify them or in certain cases proceed with the reconstruction of a new store based on its new prototype. The new
Management discussion and outlook for the Future of the Company
On
In order to address the devastating effects of COVID-19 and to assure its short and long-term financial health, the Company decided to maintain its operations at a strict minimum level while preserving its presence in our market and controlling its working capital position. The following actions were undertaken by the Company during these last weeks in order to support its operating and working capital objectives:
- Following the closure of our retail sales network on
March 18th, 2020 , the Company temporarily laid off approximately 75% of its personnel, the vast majority stemming from our retail stores. - Our online and delivery services remained operational across
Quebec to ensure the population in confinement the ability to rely on essential goods while respecting government-mandated security protocols. We modified our services to offer contactless home delivery. - During this period, the Company introduced several measures and protocols in preparation for the reopening of our stores across our sales network to ensure and protect the health and security of our employees and our clients. These new measures and protocols will be in effect until the end of the COVID-19 pandemic.
- The Company has also made technological and operational improvements to its sales network. These modifications will allow us to reduce our fixed costs and will contribute to our initiatives of effective cost controls.
- The Company applied for the
Canada Emergency Wage Subsidy given the 30% or more decrease in revenues during the prescribed period (CEWS).
During the year ended
The decrease in revenues during the year was recorded during the first semester ended
During the closure of our retail stores on two occasions during the financial year of 2021, from
In order to mitigate the loss of revenues during these closures, the Company proactively aligned its cost structure accordingly. The Company intends to maintain these measures throughout the first semester of fiscal year 2022, in order to protect the Company's viability and preserve its working capital during these highly uncertain times. Thanks to these new measures the Company believes it will be able to produce positive operating results.
In-store sales increased significantly, between 45% and 80%, in the days following their re-opening, compared to the same periods in 2019 and 2020. This increase, however, has slowed down in the weeks following the reopenings to stabilize with an increase of approximately 4.5% compared to the corresponding period of 2019 and 2020. In addition, online sales continued to increase significantly during this period compared to the corresponding period of 2019 and 2020.
The Company continues to focus on online sales, which experienced a record increase since the start of the pandemic, by actively pursuing the improvement of its digital platforms, its live chat initiative with online customers as well as the improvement of our telephone sales department for all of the
It is also Management's opinion that the digital platforms of our banners are essential in order to allow the Company to increase its market shares as well as to allow customers to start their shopping experience online to then complete their purchases in one of our stores with the help of our sales representatives.
The Company was able to increase significantly it's revenues during the periods where stores remained opened compared to results during the corresponding 2019 periods. This was partly due to improvements in marketing and strategic measures implemented, our extensive store network and the strength of digital platforms, which have enabled the Company to increase its market share in
The new measure related to COVID-19 which the Company had to implement in its stores and distribution centers and the effects of the closures and re-openings of our stores had a significant impact on the Company's operational costs during the year ended
During the year ended
As at
As a result of the increase in sales since the gradual reopening of our stores, the Company was able to call-back about 75% of it's sales staff. The Company must continue to respect social distancing as well as the maximum number of people allowed in a commercial establishment due to the regulations set by the provincial government with COVID-19, thus limiting the number of possible sales staff per store.
The rehiring of temporarily laid-off employees is in progress and proceeding as the situation evolves. The Company has actively worked to promote a call-back of its employees as soon as possible and according to operational needs.
Finally, since mid-June, the Company has had issues with its supply logistics. Many of the Company's suppliers,
It is difficult to predict the future level of consumer confidence and the possible impact on sales of
We would like to take this opportunity to thank all our fellow citizens
Caution regarding forward-looking statements
This press release contains certain forward-looking statements with respect to the Company. These forward-looking statements are identified by the use of terms and phrases such as "anticipate", "believe", "estimate", expect", "intend", "may", "plan", "predict", "project", "will", "would", as well as the opposites of these terms and similar terminology, including references to assumptions.
Forward-looking statements, by their nature, necessarily involve risks and uncertainties that could cause actual results to differ materially from those contemplated by these forward-looking statements. Results indicated in forward-looking statements may differ materially from actual results for a number of reasons, which the Company has identified in the 2021 Annual Information Form under "Narrative Description of the Business - Risk Factors", and other risks detailed from time to time in the Company's continuous disclosure documents.
The reader is cautioned that the factors we refer above are not exhaustive of the factors that may affect any of the Company's forward-looking statements. The reader is also cautioned to consider these and other factors carefully and not to put undue reliance on forward-looking statements.
The Company made a number of assumptions in making forward-looking statements in this press release. The Company considers the assumptions on which these forward-looking statements are based to be reasonable.
These statements reflect current expectations regarding future events and operating performance and speak only as of the date of release of this press release and represent the Company's expectations as of that date. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by law.
Non International Financial Reporting Standards (IFRS) financial measures
The Company discloses adjusted net earnings, which includes or excludes certain amounts that are not considered representative of the performance measures and financial recurrence of the Company. Management believes that this measure is useful in understanding and analyzing the operational performance of the Company and that it can provide additional information.
Adjusted net earnings as well as same store revenues are not an earnings measure recognized by IFRS and do not have a standardized meanings prescribed by IFRS. Therefore, adjusted net earnings and same store revenues as discussed in this press release may not be compared to similar measures presented by other issuers. These measures of performance should not be considered as alternatives to indicators of performance calculated according to IFRS, but rather as a source of additional information.
The Company discloses in this press release under the section "Results" a reconciliation between net earnings and adjusted net earnings.
SOURCE
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