METRO reports 14.9% growth in 2013 first quarter net earnings per share from
MONTREAL, Jan. 29, 2013 /CNW Telbec/ - METRO INC. (TSX: MRU) announced its
results today for the first quarter ended December 22, 2012.
-- Net earnings of $121.4 million or fully diluted net earnings
per share of $1.23, up 21.8%
-- Net earnings from continuing operations of $115.0 million, up
-- Fully diluted net earnings per share from continuing operations
of $1.16, up 14.9%
-- Sales of $2,704.7 million, up 2.7%
-- Same stores sales up 1.5%
-- Declared dividend of $0.25 per share, up 16.3%
12 weeks / Fiscal Year
(Millions of dollars,
except for net earnings per 2013 % 2012 % Change (%)
Sales 2,704.7 100.0 2,632.6 100.0 2.7
EBITDA((1)) 188.2 7.0 179.5 6.8 4.8
Net earnings 121.4 4.5 103.7 3.9 17.1
Fully diluted EPS 1.23 — 1.01 — 21.8
Net earnings from continuing 115.0 4.3 103.6 3.9 11.0
Fully diluted EPS from 1.16 — 1.01 — 14.9
"We are pleased with our 2013 first quarter results which were achieved in a
challenging economic environment of very low food inflation, intensifying
competition and cautious consumers. Our teams executed well on our business
plans and we are confident that we can continue((2)) on our growth path in the
coming quarters," stated EricR.LaFlèche, President and Chief Executive
2013 FIRST QUARTER RESULTS
Sales in the first quarter of 2013 reached $2,704.7million versus
$2,632.6million last year, an increase of 2.7%. Same store sales
increasedby 1.5%. The first quarter for fiscal 2013 includes the sales for
the week preceding Christmas whereas, in fiscal 2012, the sales for that week
were included in the second quarter. The Christmas week shift will have a
negative impact on 2013 second quarter sales compared to the 2012 second
quarter. We experienced very low inflation in our food basket in the first
EARNINGS BEFORE FINANCIAL COSTS, TAXES, DEPRECIATION AND AMORTIZATION
EBITDA((1)) for the first quarter of 2013 was $188.2million, up 4.8% from
$179.5million for the same quarter last year. First-quarter EBITDA((1))
represented 7.0% of sales versus 6.8% last year.
Gross margin as percentage of sales in the first quarter of 2013 was 18.7%
versus 18.4% in the corresponding quarter last year.
DEPRECIATION AND AMORTIZATION AND NET FINANCIAL COSTS
Total depreciation and amortization expense for the first quarter of 2013
amounted to $41.9million versus $42.2million in 2012. First quarter net
financial costs totalled $11.1million in 2013 compared to $10.1million for
the corresponding quarter last year. The average financing rate was 4.5% in
the first quarter of 2013 versus 4.1% for the corresponding period last fiscal
SHARE OF AN ASSOCIATE'S EARNINGS
Our share of earnings in Alimentation Couche-Tard was $19.0million for the
first quarter of 2013 versus $13.0million for the same quarter of 2012.
The income tax expense of $39.2million for the first quarter of 2013
represented an effective tax rate of 25.4% compared with $36.6million and an
effective tax rate of 26.1% in 2012. The decrease in the effective tax rate is
attributable notably to the 1.5% federal corporate tax rate reduction
Net earnings for the first quarter of 2013 were $121.4million, an increase
of 17.1% over net earnings of $103.7million for the same quarter of 2012.
Fully diluted net earnings per share rose 21.8% to $1.23 from $1.01 last year.
NET EARNINGS FROM DISCONTINUED OPERATION
In the first quarter of 2013, we discontinued our food service operation and
disposed of the Distagro division which supplied restaurant chains and
convenience stores belonging to and operated by gas station chains. The gain
on disposal is presented under the item "Discontinued operation" for the first
quarter of 2013 as is the sales and the expenses associated with this division
for the first quarters of 2013 and 2012. Net earnings from discontinued
operation were $6.4million for the first quarter of 2013 versus
$0.1millionfor the same quarter of 2012.
NET EARNINGS FROM CONTINUING OPERATIONS
Net earnings from continuing operations were $115.0million for the first
quarter of 2013, an increase of 11.0% over $103.6million for the same
quarter last year. Fully diluted net earnings per share from continuing
operations were $1.16for the first quarter of 2013 compared to $1.01 last
year, an increase of 14.9%.
12 weeks / Fiscal Year
2013 2012 Change (%)
(Millions Fully (Millions Fully Net Fully
diluted diluted earnings diluted
of EPS of EPS EPS
dollars) (Dollars) dollars) (Dollars)
Net earnings 121.4 1.23 103.7 1.01 17.1 21.8
Net earnings (6.4) (0.07) (0.1) —
Net earnings 115.0 1.16 103.6 1.01 11.0 14.9
NORMAL COURSE ISSUER BID PROGRAM
Under the normal course issuer bid program, the Corporation may repurchase up
to 6,000,000 of its Common Shares between September10, 2012 and
September9,2013. Between September10, 2012 and January18, 2013, the
Corporation has repurchased 1,241,000Common Shares at an average price of
$59.15 for a total of $73.4million. This program offers us an additional
option for using excess funds.
On January28, 2013, the Corporation's Board of Directors declared a
quarterly dividend of $0.25 per Common Share payable March15, 2013, an
increase of 16.3% over the dividend declared for the same quarter last year.
On an annualized basis, this dividend represents approximately 20% of 2012 net
We have used, throughout this report, different statements that could, within
the context of regulations issued by the Canadian Securities Administrators,
be construed as being forward-looking information. In general, any statement
contained herein, which does not constitute a historical fact, may be deemed a
forward-looking statement. Expressions such as "continue" and other similar
expressions are generally indicative of forward-looking statements. The
forward-looking statements contained herein are based upon certain assumptions
regarding the Canadian food industry, the general economy, our annual budget,
as well as our 2013 action plan.
These forward-looking statements do not provide any guarantees as to the
future performance of the Corporation and are subject to potential risks,
known and unknown, as well as uncertainties that could cause the outcome to
differ significantly. An economic slowdown or recession, or the arrival of a
new competitor, are examples described under the "Risk Management" section of
the 2012AnnualReport which could have an impact on these statements. We
believe these statements to be reasonable and pertinent as at the date of
publication of this report and represent our expectations. The Corporation
does not intend to update any forward-looking statement contained herein,
except as required by applicable law.
IFRS AND NON-IFRS MEASUREMENTS
In addition to the IFRS earnings measurements provided, we have included
certain IFRS and non-IFRS earnings measurements. These measurements are
presented for information purposes only. They do not have a standardized
meaning prescribed by IFRS and therefore may not be comparable to similar
measurements presented by other public companies.
EARNINGS BEFORE FINANCIAL COSTS, TAXES, DEPRECIATION AND AMORTIZATION (EBITDA)
EBITDA is a measurement of earnings that excludes financial costs, taxes,
depreciation and amortization. It is an additional IFRS measurement and it is
presented separately in the consolidated statements of income. We believe that
EBITDA is a measurement commonly used by readers of financial statements to
evaluate a company's operational cash-generating capacity and ability to
discharge its financial expenses.
ADJUSTED NET EARNINGS FROM CONTINUING OPERATIONS AND ADJUSTED FULLY DILUTED
NET EARNINGS PER SHARE FROM CONTINUING OPERATIONS
Adjusted net earnings from continuing operations and adjusted fully diluted
net earnings per share from continuing operations are earnings measurements
that exclude non-recurring items. They are non-IFRS measurements. We believe
that presenting earnings without non-recurring items leaves readers of
financial statements better informed as to the current period and
corresponding period's earnings, thus enabling them to better evaluate the
Corporation's performance and judge its future outlook.
Financial analysts and institutional investors are invited to participate in a
conference call on the 2013first quarter results at 4:00 p.m. (EST) on
Tuesday, January29,2013. To access the conference call, please dial 647
427-7450 or 1888231-8191. The media and investing public may access this
conference via a listen mode only.
Notice to readers: METRO INC. first quarter of 2013 interim condensed
consolidated financial statements and management's discussion and analysis are
available on the Internet at www.metro.ca - Corporate Site - Annual Report and
Other Documents - QuarterlyResults - 2013First QuarterResults.
((1))See section "IFRS and Non-IFRS Measurements"
((2))See section "Forward-looking Information"
François Thibault Senior Vice-President, Chief Financial Officer and
Treasurer Tel.: (514) 643-1003 Investor RelationsDepartment: Tel.: (514)
SOURCE: Metro inc.
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