Dollarama announces solid first quarter results and renews normal course issuer bid

   Dollarama announces solid first quarter results and renews normal course
                                  issuer bid

PR Newswire

MONTREAL, June 12, 2013

MONTREAL, June 12, 2013 /PRNewswire/ - Dollarama Inc. (TSX: DOL)  ("Dollarama" 
or the "Corporation") today reported an  increase in sales and an  improvement 
in net earnings  for the  first quarter  ended May  5, 2013.  The quarter  was 
characterized by strong sales growth  and solid comparable store sales  growth 
despite difficult weather conditions.

Financial and Operating Highlights

(All comparative figures  below and  in the "Financial  Results" section  that 
follows, are for the  first quarter ended  May 5, 2013  compared to the  first 
quarter ended April  29, 2012.  All financial information  presented in  this 
news  release  has  been  prepared  in  accordance  with  generally   accepted 
accounting principles in  Canada ("GAAP") as  set out in  the Handbook of  the 
Canadian Institute  of  Chartered  Accountants -  Part  1  which  incorporates 
International  Financial  Reporting  Standards  ("IFRS")  as  issued  by   the 
International  Accounting  Standards  Board.  Throughout  this  news  release, 
EBITDA, which is referred to as the  "Non-GAAP Measure", is used to provide  a 
better understanding  of  the  Corporation'sfinancial  results.  For  a  full 
explanation of the Corporation's use of the Non-GAAP Measure, please refer  to 
footnote 1 of  the "Selected  Consolidated Financial  Information" section  of 
this news release.)

Throughout this  news release,  all references  to "Fiscal  2013" are  to  the 
Corporation's fiscal year ended February 3,  2013 and to "Fiscal 2014" are  to 
the Corporation's fiscal year ending February 2, 2014.

Compared to the first quarter of Fiscal 2013

  *Sales increased by 12.6%;
  *Comparable store sales grew 3.7%;
  *EBITDA^(1) grew 7.5% to $76.3 million, or 17.0% of sales;
  *Operating income grew 5.0% to $65.0 million, or 14.5% of sales;
  *Diluted net earnings per share increased by 10.7%, from $0.56 to $0.62;

In addition, 85 net new stores were opened over the past 12 months,  including 
21 net new stores opened during the first quarter of Fiscal2014.

The acceleration of  net new  store openings  over the  past 12  months to  85 
compared to  54  net new  stores  during the  prior  comparable period  had  a 
temporary cost impact  in the first  quarter of approximately  0.40% on  gross 
margin and of 0.20%  on general, administrative  and store operating  expenses 
("SG&A") due to costs associated with new store openings. This cost impact  is 
expected to continue over the next three quarters after which the  Corporation 
expects to realize the positive  effects of an increase  in the number of  net 
new stores.

"We are pleased with  our first quarter financial  and operating results.  Our 
business continues to deliver improved sales and earnings as we remain focused
on providing  great  value  to  our  customers  from  our  growing  number  of 
conveniently located stores. For  Fiscal 2014, we are  committed to opening  a 
minimum of 80  net new stores  thereby maintaining the  increased pace of  new 
store openings established in Fiscal  2013," stated Larry Rossy, Chairman  and 
Chief Executive Officer of Dollarama.

Financial Results

Sales  for  the  first   quarter  of  Fiscal  2014   increased  by  12.6%   to 
$448.1million from $398.0million  in the corresponding  period of the  prior 
fiscal year. The increase  was driven by  the growth in  the number of  stores 
over the past twelve months from 721 stores on April 29, 2012 to 806 stores on
May 5, 2013,  and continued organic  sales growth driven  by comparable  store 
sales growth of  3.7% in  the first  quarter of  Fiscal 2014,  over and  above 
comparable store sales  growth of 8.1%  in the first  quarter of Fiscal  2013. 
Comparable store sales growth for the  first quarter of Fiscal 2014  consisted 
of a 4.6%  increase in  average transaction size  partially offset  by a  0.9% 
decrease in the number of transactions. The increase in comparable store sales
is particularly satisfying given the difficult weather conditions in  February 
and March of  2013 compared  to the very  favourable conditions  in the  prior 
year. Weather conditions had an adverse  impact on the number of  transactions 
compared to the prior year while transaction sizes improved as a result of the
increased sales on higher price point items. In this quarter, 58% of our sales
originated from  products priced  higher than  $1.00 compared  to 51%  in  the 
corresponding quarter last year. Debit card penetration also increased, as 40%
of sales  were paid  with debit  cards compared  to 39%  in the  corresponding 
period of the previous fiscal year.

The gross margin  was 35.9%  of sales  in the  first quarter  of Fiscal  2014, 
compared to 36.3% of sales in the first quarter of Fiscal 2013, mainly due  to 
stable product  margins offset  by additional  occupancy and  logistics  costs 
associated with the increased pace of new store openings in the first  quarter 
of Fiscal 2014.  The cost effects  associated to the  acceleration of net  new 
store openings is expected to have a  greater impact during the first half  of 
Fiscal 2014. This impact will be offset by the positive contributions of these
stores as they mature.

SG&A expenses  for the  first quarter  of Fiscal2014  increased to  18.8%  of 
sales, compared to 18.5% of sales in the corresponding period of  Fiscal2013. 
During the quarter we realized the benefit of several productivity initiatives
implemented to date,  however, these were  offset by (i)  training and  labour 
costs associated with the incremental impact of a greater number of new  store 
openings that are not  contributing sales and earnings  to the extent of  more 
mature stores,  and  (ii) the  timing  of other  operating  expenses  incurred 
including the costs of  rolling out various  productivity initiatives. SG&A  ^ 
expenses in the first quarter of  Fiscal2014 stood at $84.4million, a  14.9% 
increase over $73.5million in  the corresponding period  of Fiscal 2013.  The 
increase is due primarily to  the opening of 85 net  new stores over the  past 
twelve months. The Corporation's ongoing productivity initiatives are expected
to result in a slight improvement in our  SG&A as a percentage of sales ^  for 
Fiscal 2014 when compared to Fiscal 2013.

Net financing costs decreased by $0.4million, from $2.7million for the first
quarter of Fiscal2013 to $2.3 million  for the first quarter of  Fiscal2014. 
This decrease is attributable to a  lower interest rate on the long-term  debt 
compared to the corresponding period of Fiscal2013.

For the first quarter of Fiscal2014, net earnings increased to $45.6million,
or $0.62 per diluted  share, compared to $42.6million,  or $0.56 per  diluted 
share, for the corresponding period of Fiscal2013.


On June 12, 2013, the Corporation's  Board of Directors announced that it  had 
approved a quarterly dividend  for holders of its  common shares of $0.14  per 
common share. The Corporation's quarterly dividend  will be paid on August  7, 
2013 to shareholders of record at the close of business on July 5, 2013 and is
designated as an "eligible dividend" for Canadian tax purposes.

Renewal of Normal Course Issuer Bid

On June 12, 2013, the Corporation  also announced that its Board of  Directors 
had approved the renewal  of the normal course  issuer bid and that  Dollarama 
had received  approval  from  the  Toronto Stock  Exchange  to  purchase,  for 
cancellation, up to  3,364,523 common  shares, or 5%  of the  public float  of 
67,290,467 common  shares  as  of  May 31,2013.  Purchases  may  commence  on 
June17, 2013 and will terminate  no later than June16,2014. Dollarama  also 
announced that it had entered into an automatic purchase plan agreement with a
broker to allow for the purchase of its common shares under the NCIB at  times 
when  Dollarama  ordinarily  would  not  be  active  in  the  market  due   to 
self-imposed  trading  blackout  periods.  Outside  of  these   pre-determined 
blackout  periods,  common  shares  will  be  purchased  in  accordance   with 
management's discretion. The Board of Directors believes that the purchase  by 
Dollarama of its common shares represents an appropriate and desirable use  of 
its available cash to increase shareholder value.

About Dollarama

Dollarama is Canada's leading dollar store operator with 806 locations  across 
the country. Our stores provide customers with compelling value in  convenient 
locations, including  metropolitan areas,  mid-sized cities  and small  towns. 
Dollarama aims to  provide customers  with a  consistent shopping  experience, 
offering a broad assortment of everyday consumer products, general merchandise
and seasonal  items. Products  are currently  sold in  individual or  multiple 
units at select fixed price points up to $3.00.

Forward-Looking Statements

Certain statements in this  news release about our  current and future  plans, 
expectations and intentions, results,  levels of activity, performance,  goals 
or  achievements  or  any  other  future  events  or  developments  constitute 
forward-looking  statements.  The  words  "may",  "will",  "would",  "should", 
"could",   "expects",    "plans",    "intends",    "trends",    "indications", 
"anticipates", "believes", "estimates", "predicts", "likely" or "potential" or
the negative or other variations of  these words or other comparable words  or 
phrases, are intended to identify forward-looking statements.  Forward-looking 
statements are based on information currently available to us and on estimates
and assumptions  made by  us in  light  of our  experience and  perception  of 
historical trends,  current conditions  and expected  future developments,  as 
well as other factors  that we believe are  appropriate and reasonable in  the 
circumstances,  but  there  can  be  no  assurance  that  such  estimates  and 
assumptions will prove  to be  correct. Many  factors could  cause our  actual 
results, level of activity,  performance or achievements  or future events  or 
developments to  differ materially  from  those expressed  or implied  by  the 
forward-looking  statements,  including,  without  limitation,  the  following 
factors,  which  are   discussed  in   greater  detail  in   the  "Risks   and 
Uncertainties"  section  of  the  Corporation's  management's  discussion  and 
analysis (MD&A)  for Fiscal  2013  and in  its continuous  disclosure  filings 
(available on  SEDAR  at  future  increases in  operating  and 
merchandise costs, inability  to sustain assortment  and replenishment of  our 
merchandise, increase in  the cost  or a disruption  in the  flow of  imported 
goods,  disruption  of   distribution  infrastructure,  inventory   shrinkage, 
inability to  renew  store, warehouse,  distribution  center and  head  office 
leases  on  favourable  terms,  inability   to  increase  our  warehouse   and 
distribution  center  capacity  in   a  timely  manner,  seasonality,   market 
acceptance of  our private  brands, failure  to protect  trademarks and  other 
proprietary rights,  foreign  exchange  rate  fluctuations,  potential  losses 
associated with using derivative financial instruments, level of  indebtedness 
and inability to generate sufficient cash  to service our debt, interest  rate 
risk associated with  variable rate  indebtedness, competition  in the  retail 
industry, current economic conditions, failure to attract and retain qualified
employees,  departure  of   senior  executives,   disruption  in   information 
technology systems,  unsuccessful execution  of our  growth strategy,  holding 
company  structure,  adverse  weather,  natural  disasters  and  geo-political 
events, unexpected  costs  associated  with  our  current  insurance  program, 
litigation, product liability  claims and product  recalls, and  environmental 
and regulatory compliance.

These factors are  not intended to  represent a complete  list of the  factors 
that could  affect  us; however,  they  should be  considered  carefully.  The 
purpose of the  forward-looking statements  is to  provide the  reader with  a 
description of management's expectations regarding the Corporation's financial
performance and may not be appropriate for other purposes; readers should  not 
place undue reliance on  forward-looking statements made herein.  Furthermore, 
unless otherwise stated, the forward-looking statements contained in this news
release are made as of June12, 2013,  and we have no intention and  undertake 
no obligation to update or revise any forward-looking statements, whether as a
result of new information, future events  or otherwise, except as required  by 
law. The  forward-looking  statements  contained  in  this  news  release  are 
expressly qualified by this cautionary statement.

Selected Consolidated Financial Information

                                                   13-Week Period Ended
(dollars and shares in thousands, except per   May 5, 2013   April 29, 2012
share amounts)
                                                   $              $
Earnings Data                                                             
Sales                                              448,120           397,967
Cost of sales                                      287,446           253,548
Gross profit                                       160,674           144,419
SG&A                                                84,406            73,489
Depreciation and amortization                       11,229             9,005
Operating income                                    65,039            61,925
Net financing costs                                  2,313             2,730
Earnings before income taxes                        62,726            59,195
Provision for income taxes                          17,081            16,612
Net earnings                                        45,645            42,583
Basic net earnings per common share                  $0.62             $0.58
Diluted net earnings per common share                $0.62             $0.56
Weighted average number of common shares                   
outstanding during the period:                                              
                   Basic                           73,102            73,808
                   Diluted                         73,274            75,701
Other Data                                                                
Year-over-year sales growth                          12.6%             14.9%
Comparable store sales growth ^(2)                    3.7%              8.1%
Gross margin ^(3)                                    35.9%             36.3%
SG&A as a % of sales ^(3)                            18.8%             18.5%
EBITDA ^(1)                                         76,268            70,930
Operating margin ^(3)                                14.5%             15.6%
Capital expenditures                                20,050            14,124
Number of stores ^(4)                                  806               721
Average store size (gross square feet) ^(4)          9,939             9,916
Declared dividends per common share ^(5)             $0.14             $0.11
                                                          As at
                                              May 5, 2013  February 3, 2013
                                                   $              $
Statement of Financial Position Data                                      
Cash and cash equivalents                           39,975            52,566
Merchandise inventories                            332,119           338,385
Property and equipment                             216,426           207,697
Total assets                                     1,458,285         1,453,692
Total debt ^(6)                                    266,478           264,420
Net debt ^(7)                                      226,503           211,854

^(1) In this press release EBITDA is referred to as the "Non-GAAP measure".
     EBITDA represents operating income plus depreciation and amortization.
     Non-GAAP measures are not generally accepted measures under GAAP and do
     not have a standardized meaning under GAAP. The Non-GAAP measure, as
     calculated by the Corporation, may not be comparable to those of other
     issuers and should be considered as a supplement to, not a substitute
     for, or superior to, the comparable measures calculated in accordance
     with GAAP.
    We have included the Non-GAAP measure to provide investors with
     supplemental measures of our operating and financial performance. We
     believe that Non-GAAP measures are important supplemental metrics of
     operating and financial performance because they eliminate items that
     have less bearing on our operating and financial performance and thus
     highlight trends in our core business that may not otherwise be apparent
     when relying solely on GAAP measures. We also believe that securities
     analysts, investors and other interested parties frequently use non-GAAP
     measures in the evaluation of issuers, many of which present non-GAAP
     measures when reporting their results. Our management also uses the
     Non-GAAP measure in order to facilitate operating and financial
     performance comparisons from period to period, to prepare annual budgets,
     and to assess our ability to meet our future debt service, capital
     expenditure and working capital requirements.

                                                    13-Week Period Ended
(dollars in thousands)                           May 5, 2013  April 29, 2012
                                                     $             $
A reconciliation of operating income to EBITDA               
is included below:                                                          
Operating income                                      65,039          61,925
Add: Depreciation and amortization                    11,229           9,005
EBITDA                                                76,268          70,930
               EBITDA margin ^(3)                     17.0%           17.8%

^(2) Comparable store sales represents sales of stores, including relocated
     and expanded stores, open for at least 13 complete fiscal months relative
     to the same period in the prior year.
^(3) Gross margin represents gross profit divided by sales. SG&A as a % of
     sales represents SG&A divided by sales. Operating margin represents
     operating income divided by sales. EBITDA margin represents EBITDA
     divided by sales.
^(4) At the end of the period.
^(5) On April 11, 2013, the Corporation's Board of Directors approved a 27%
     increase of the quarterly dividend, from $0.11 to $0.14 per common share.
     Dividends are usually paid at the beginning of the quarter following the
     declaration date.
^(6) Total debt is comprised of long-term debt before debt issue costs and
^(7) Net debt is defined as total debt minus cash and cash equivalents.

SOURCE Dollarama Inc.


Michael Ross, FCPA, FCA
Chief Financial Officer and Secretary
(514)737-1006 x1237

Lyla Radmanovich
NATIONAL Public Relations
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