Sears Canada Inc. Announces Management Changes; Announces Unaudited Consolidated Earnings Results for the First Quarter Ended May 4, 2013; Reports Inventory Write-Down for the First Quarter Ended May 4, 2013
May 22, 2013 at 07:00 am EDT
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Sears Canada Inc. announced that the board of directors of the corporation has appointed E.J. Bird as Executive Vice-President and Chief Financial Officer. Mr. Bird was appointed Interim Chief Financial Officer on March 12, 2013. Mr. Bird will also continue to serve as a Director of the corporation, a role he has held since 2006. In addition, the company is also announcing that Donald C. Ross has been appointed Lead Director of the corporation and that Deborah E. Rosati has been appointed chair of the Audit Committee.
The company announced unaudited consolidated earnings results for the first quarter ended May 4, 2013. Total revenue for the 13-week period ended May 4, 2013 was CAD 867.1 million compared to CAD 928.0 million for the 13-week period ended April 28, 2012, a decrease of 6.6%. Same store sales decreased 2.6%. The net loss for the quarter this year was CAD 31.2 million or CAD 0.31 per share compared to net earnings of CAD 93.1 million or CAD 0.91 per share for the same period last year. Included in the net earnings for the first quarter last year was a pre-tax gain of CAD 164.3 million related to the lease terminations of three stores as announced by the Company on March 2, 2012. Excluding the gain from lease terminations, the net loss in the first quarter last year was CAD 44.9 million. Adjusted EBITDA was a loss of CAD 9.8 million compared to a loss of CAD 22.7 million for the 13-week period ended April 28, 2012, an improvement of CAD 12.9 million. Operating loss was CAD 41.5 million, compared to CAD 55.0 million for the last year. Loss before income taxes was CAD 43.4 million, compared to CAD 105.4 million for the last year. Cash flow used for operating activities was CAD 119.6 million, compared to CAD 83.1 million for the last year. Purchase of property, plant and equipment and intangible assets was CAD 6.7 million, compared to CAD 15.7 million for the last year.
For the quarter, the company reported inventory write-down of CAD 24.4 million, compared to CAD 22.6 million for the last year.
Sears Canada Inc. (Sears) is a Canada-based multi-channel retailer company. The Company operates through merchandising segment. Its merchandising operations include the sale of goods and services through its retail channels, which includes its full-line, Sears Home, Hometown, Outlet, Corbeil Electrique Inc. (Corbeil) stores and its direct (catalogue/Internet) channel. Its services include home improvements, such as carpet and duct cleaning, installation and assembly of products purchased at Sears stores, custom window coverings, windows and doors, and heating and cooling; product repair services, such as servicing of items covered under Sears Protection Plan, cash calls, as well as in-warranty service for select Kenmore, Craftsman and national brand products, and protection agreements, such as single or multi-year coverage on appliances, electronics, vacuums, lawn and garden, fitness, and heating, ventilating and air conditioning, and accident protection for furniture and mattresses.
Sears Canada Inc. Announces Management Changes; Announces Unaudited Consolidated Earnings Results for the First Quarter Ended May 4, 2013; Reports Inventory Write-Down for the First Quarter Ended May 4, 2013