METRO Reports 8.5% Growth in 2013 Second Quarter Adjusted Earnings per Share(1)

METRO Reports 8.5% Growth in 2013 Second Quarter Adjusted Earnings per Share(1) 
MONTREAL, April 24, 2013 /CNW Telbec/ - METRO INC. (TSX: MRU) today announced 
its results for the second quarter endedMarch 16, 2013. These results 
include the non-recurring net gain of $266.4million after taxes on the sale 
of 10million shares of Alimentation Couche-Tard Inc. 
HIGHLIGHTS 


    --  Net earnings of $366.8 million or fully diluted net earnings
        per share of $3.77
    --  Adjusted net earnings from continuing operations((1)) of $100.5
        million, up 4.4%
    --  Adjusted fully diluted net earnings per share from continuing
        operations((1)) of $1.02, up 8.5%
    --  Sales of $2,513.2 million, down 2.6%
    --  Same-store sales flat
    --  Declared dividend of $0.25 per share, up 16.3%
                                           12 weeks / Fiscal Year

(Millions of dollars,
except for net earnings per
share/EPS)                     2013       %    2012       % Change (%)

Sales                       2,513.2   100.0 2,580.2   100.0      (2.6)

EBITDA((1))                   180.0     7.2   174.6     6.8        3.1

Net earnings                  366.8    14.6    96.1     3.7      281.7

Fully diluted EPS              3.77 —    0.94 —      301.1

Adjusted net earnings from
continuing operations((1))    100.5     4.0    96.3     3.7        4.4

Adjusted fully diluted EPS
from continuing operations(
(1))                           1.02 —    0.94 —        8.5
                                                                      
                                           24 weeks / Fiscal Year

(Millions of dollars,
except for net earnings per
share/EPS)                     2013       %    2012       % Change (%)

Sales                       5,217.9   100.0 5,212.8   100.0        0.1

EBITDA((1))                   368.2     7.1   354.1     6.8        4.0

Net earnings                  488.2     9.4   199.8     3.8      144.3

Fully diluted EPS              4.99 —    1.95 —      155.9

Adjusted net earnings from
continuing operations((1))    215.5     4.1   199.9     3.8        7.8

Adjusted fully diluted EPS
from continuing operations(
(1))                           2.18 —    1.95 —       11.8

PRESIDENT'S MESSAGE

"We are pleased with our 2013 second quarter net earnings growth which was 
achieved despite the Christmas week sales shift versus last year. The 
competitive environment will remain((2)) challenging in the coming quarters 
and we will continue((2)) to execute our customer-focused strategies and 
exercise good cost control to continue((2)) on our growth path," stated 
EricR.LaFlèche, President and Chief Executive Officer.

2013 SECOND QUARTER RESULTS

SALES

Sales in the second quarter of 2013 reached $2,513.2million versus 
$2,580.2million last year. This decrease resulted primarily from the shift 
in the important week preceding Christmas (which in this fiscal year was 
included in the first quarter compared to the second quarter last year), the 
closure of a few unprofitable stores in Ontario, as well as the loss of sales 
in our pharmaceutical division due to temporary efficiency difficulties 
following the implementation of a new warehouse management system. Adjusting 
for the Christmas week shift, same-store sales were flat versus last year. We 
experienced no inflation in our food basket for the second quarter of 2013.

Sales in the first 24 weeks of 2013 reached $5,217.9million versus 
$5,212.8million for the corresponding period of fiscal 2012. This marginal 
increase was the result of very low food inflation, increased competition, the 
closure of underperforming stores, and the temporary problems at our 
pharmaceutical product warehouse.

EARNINGS BEFORE FINANCIAL COSTS, TAXES, DEPRECIATION AND AMORTIZATION 
(EBITDA)((1))

EBITDA((1)) for the second quarter of 2013 was $180.0million, up 3.1% from 
$174.6million for the same quarter last year. Second-quarter EBITDA((1)) 
represented 7.2% of sales versus 6.8% last year.

EBITDA((1)) for the first 24 weeks of 2013 was $368.2million which 
represented 7.1% of sales versus $354.1million and 6.8% of sales for the 
corresponding period last year.

Second quarter and 24-week gross margins for 2013 were 19.5% and 19.1%, 
increases over the 19.1% and 18.8% for the corresponding periods of 2012. 
Effective margin management in a highly promotional environment, reduced 
shrink at store level, and the closure of unprofitable stores contributed to 
the improvement of our gross margin rates versus last year.

DEPRECIATION AND AMORTIZATION AND NET FINANCIAL COSTS

Total depreciation and amortization expenses for the second quarter and the 
first 24 weeks of 2013 amounted to $41.4million and $83.3million 
respectively versus $42.2million and $84.4million in 2012. Net financial 
costs for the second quarter and the first 24 weeks of 2013 totalled 
$10.0million and $21.1million compared to $10.6million and 
$20.7million for the corresponding periods of 2012. The average financing 
rate was 4.6% for the first 24 weeks of 2013 versus 4.1% for the corresponding 
period last fiscal year.

SHARE OF AN ASSOCIATE'S EARNINGS

Our share of earnings in Alimentation Couche-Tard was $8.0million for the 
second quarter and $27.0million for the first 24 weeks of 2013 versus 
$8.9million and $21.9million for the corresponding periods of 2012.

GAIN ON DISPOSAL OF PART OF THE INVESTMENT IN AN ASSOCIATE

In the second quarter of 2013, we sold nearly half of our investment in 
Alimentation Couche-Tard to three financial institutions for cash 
consideration of $479.0million and a net gain of $266.4million after taxes.

INCOME TAXES

Second quarter and 24-week period income tax expenses of $77.5million and 
$116.7 million in 2013 represented effective tax rates of 17.4% and 19.5% 
compared with second quarter and 24-week period income tax expenses of 
$34.4million and $71.0million respectively in 2012 for effective tax rates 
of 26.3% and 26.2%.

Excluding the $307.8million gain on disposal of part of our investment in 
Alimentation Couche-Tard and related income tax of $41.4million, effective 
tax rates for the second quarter and 24-week period of 2013 were 26.4% and 
25.9% respectively compared with 26.3% and 26.2% for the corresponding periods 
of 2012. The decrease in the adjusted effective tax rate for the 24-week 
period is attributable notably to the 1.5% federal corporate tax rate 
reduction effective January1,2012.

NET EARNINGS

Net earnings for the second quarter of 2013 were $366.8million, an increase 
of 281.7% over net earnings of $96.1million for the same quarter of 2012. 
Fully diluted net earnings per share rose 301.1% to $3.77 from $0.94 last year.

Net earnings for the first 24 weeks of 2013 reached $488.2million, up 144.3% 
from $199.8million for the corresponding period of 2012. Fully diluted net 
earnings per share were $4.99 compared to $1.95 last year, an increase of 
155.9%.

NET EARNINGS (LOSS) FROM DISCONTINUED OPERATION

In the first quarter of 2013, we discontinued our foodservice operation and 
disposed of the Distagro division which supplied restaurant chains and 
convenience stores belonging to and operated by gas station chains. The 
division's sales and expenses are presented under the item "Discontinued 
operation" for 2012 and 2013.

The net loss from the discontinued operation was $0.1million for the second 
quarter of 2013 versus $0.2millionfor the same quarter of 2012. In the 
first 24 weeks of 2013, we recorded net earnings of $6.3million due chiefly 
to the gain on disposal versus a net loss of $0.1million for the same period 
of 2012.

NET EARNINGS FROM CONTINUING OPERATIONS

Net earnings from continuing operations were $366.9million for the second 
quarter of 2013, an increase of 281.0% over $96.3million for the same 
quarter last year. Fully diluted net earnings per share from continuing 
operations were $3.77for the second quarter of 2013 compared to $0.94 last 
year, an increase of 301.1%. Excluding the after-tax gain on disposal of part 
of our investment in Alimentation Couche-Tard, 2013 second quarter adjusted 
net earnings from continuing operations((1)) were $100.5million, up 4.4% 
from $96.3million last year, and adjusted fully diluted net earnings per 
share from continuing operations((1)) were $1.02, up 8.5% from $0.94 last year.

Net earnings from continuing operations were $481.9million for the 24-week 
period of 2013 versus $199.9million last year, an increase of 141.1%. Fully 
diluted net earnings per share from continuing operations were $4.93 for the 
24-week period of 2013 versus $1.95 last year, an increase of 152.8%. 
Excluding the after-tax gain on disposal of part of the investment in 
Alimentation Couche-Tard, adjusted net earnings from continuing 
operations((1)) for the 24-week period of 2013 were $215.5million, up 7.8% 
from $199.9million last year, and adjusted fully diluted net earnings per 
share from continuing operations((1)) were $2.18, up 11.8% from $1.95 last 
year.
                           12 weeks / Fiscal Year                        
                        2013                  2012           Change (%)
                           Fully                 Fully
             (Millions   diluted   (Millions   diluted              Fully
                    of      EPS           of       EPS        Net diluted
              dollars) (Dollars)    dollars) (Dollars)   earnings     EPS

Net earnings     366.8      3.77        96.1      0.94      281.7   301.1

Net loss
from
discontinued
operation          0.1   —         0.2   —                   

Net earnings
from
continuing
operations       366.9      3.77        96.3      0.94      281.0   301.1

Gain on
disposal of
a portion of
the
investment
in
Couche-Tard
after taxes    (266.4)    (2.75)     —   —                   

Adjusted net
earnings
from
continuing
operations(
(1))             100.5      1.02        96.3      0.94        4.4     8.5
                                                                         
                           24 weeks / Fiscal Year                        
                        2013                  2012           Change (%)
                           Fully                 Fully
             (Millions   diluted   (Millions   diluted              Fully
                    of      EPS           of       EPS        Net diluted
              dollars) (Dollars)    dollars) (Dollars)   earnings     EPS

Net earnings     488.2      4.99       199.8      1.95      144.3   155.9

Net loss
(earnings)
from
discontinued
operation        (6.3)    (0.06)         0.1   —                   

Net earnings
from
continuing
operations       481.9      4.93       199.9      1.95      141.1   152.8

Gain on
disposal of
a portion of
the
investment
in
Couche-Tard
after taxes    (266.4)    (2.75)     —   —                   

Adjusted net
earnings
from
continuing
operations(
(1))             215.5      2.18       199.9      1.95        7.8    11.8

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 April12, 2013, the 
Corporation has repurchased 2,323,700Common Shares at an average price of 
$60.29 for a total of $140.1million.

DIVIDENDS

On April23, 2013, the Corporation's Board of Directors declared a quarterly 
dividend of $0.25 per Common Share payable June14, 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 
earnings excluding non-recurring items.

FORWARD-LOOKING INFORMATION

We have used, throughout this press release, 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 "remain", 
"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.

CONFERENCE CALL

Financial analysts and institutional investors are invited to participate in a 
conference call on the 2013second quarter results at 10:00 a.m. (EDT) on 
Wednesday, April24,2013. 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. second 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 - 2013Second 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 Relations Department: Tel.: (514) 
643-1055 E-mail:finance@metro.ca

SOURCE: METRO INC.

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CO: METRO INC.
ST: Quebec
NI: RET FDR ERN CONF FIN 

-0- Apr/24/2013 11:00 GMT


 
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