The Jean Coutu Group: Second Quarter of Fiscal Year 2014 Results

The Jean Coutu Group: Second Quarter of Fiscal Year 2014 Results 
LONGUEUIL, QUEBEC -- (Marketwired) -- 10/09/13 -- The Jean Coutu
Group (PJC) Inc. (the "Corporation" or the "Jean Coutu Group")
(TSX:PJC.A) reported its financial results today for the quarter
ended August 31, 2013. 
SUMMARY OF RESULTS
(Unaudited, in millions of Canadian dollars, except per share
amounts) 


 
                                            Second quarter        First half
                                             2014     2013     2014     2013
----------------------------------------------------------------------------
                                                $        $        $        $
Revenues                                    653.8    658.7  1,335.4  1,340.2
Operating income before amortization                                        
 ("OIBA")                                    77.2     76.9    159.0    156.3
Gains related to the investment in Rite                                     
 Aid                                        158.3        -    212.7    348.0
Net profit                                  208.2     51.2    316.8    448.5
  Per share                                  0.99     0.23     1.49     2.05
Net profit before gains related to the                                      
 investment in Rite Aid and change in                                       
 fair value of other financialassets (1)     49.9     50.0    104.1    101.6
  Per share                                  0.24     0.23     0.49     0.47
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(1)    See the "Non-IFRS financial measure" section.                        

 
HIGHLIGHTS 


 
--  Operating income before amortization ("OIBA") increased by 0.4% for the
    second quarter of fiscal year 2014, despite the deflationary impact on
    pharmacy sales of a strong generic drugs penetration. 
--  Gain on disposal of investment in Rite Aid totalling $158.3 million
    following the sale of the 105,901,162 common shares during the second
    quarter of fiscal year 2014, for a net proceed of $315.8 million (US$
    302.9 million).                          
--  The Corporation extended its $500.0 million credit facility maturity
    date by 1 year to November 2018. 
--  Distribution of up to $502 million to shareholders via the repurchase of
    up to 22 million class "A" subordinate voting shares and a special
    dividend of $0.50 per Class "A" and "B" share. 

 
Financial results 
"During the second quarter, we continued to implement efficiently our
business plan, which allowed us to account for an increase of the
operating income before amortization in spite of a difficult
regulatory environment impacting pharmacy sales," explained Francois
J. Coutu, President and Chief Executive Officer. "Development of
dynamic marketing programs and execution of our business strategies
will remain our priorities to pursue our growth over the next
quarters." 
Revenues 
Revenues consist mainly of sales and other revenues derived from
franchising activities. Merchandise sales to PJC franchisees made
mostly through our distribution centres account for the greater part
of our revenues. 
Revenues amounted to $653.8 million during the quarter ended August
31, 2013, compared with $658.7 million in the quarter ended September
1, 2012. During the first half of fiscal year 2014, revenues amounted
to $1,335.4 million compared with $1,340.2 million in the same period
of the previous fiscal year, a decrease of 0.4%. This decrease is
attributable to the deflationary impact on revenues of the
significant volume increase in prescriptions of generic drugs as well
as the price reductions of generic drugs, despite the overall market
growth and the expansion of the PJC network of franchised stores. 
OIBA  
OIBA increased by $0.3 million to $77.2 million for the quarter ended
August 31, 2013 compared with $76.9 million for the quarter ended
September 1, 2012. This increase is mainly attributable to a strong
operational performance of the generic drugs segment. OIBA as a
percentage of revenues ended the second quarter of fiscal year 2014
at 11.8% compared with 11.7% for the same quarter of the previous
fiscal year. 
For the first half of fiscal year 2014, the Corporation's OIBA
increased by $2.7 million amounting to $159.0 million compared with
$156.3 million for the same period of fiscal year 2013. As a
percentage of revenues, OIBA ended the first semester of 2014 at
11.9% compared with 11.7% for the same period of the previous fiscal
year. 
Pro Doc 
Gross sales of Pro Doc drugs, net of intersegment eliminations,
amounted to $44.6 million during the quarter ended August 31, 2013,
compared with $38.3 million for the quarter ended September 1, 2012.
Pro Doc's contribution to the consolidated OIBA amounted to $19.0
million during the quarter ended August 31, 2013, compared with $15.4
million for the quarter ended September 1, 2012. Pro Doc's
contribution to the consolidated OIBA as a percentage of gross sales,
net of intersegment eliminations, ended the second quarter of fiscal
year
 2014 at 42.6% compared with 40.2% for the same period of the
previous fiscal year. 
Gross sales of Pro Doc drugs, net of intersegments eliminations,
amounted to $90.3 million during the first half of fiscal year 2014,
compared with $76.1 million for the same period of fiscal year 2013.
Pro Doc's contribution to the consolidated OIBA amounted to $36.4
million during the first half of fiscal year 2014, compared with
$30.6 million for the same period of fiscal year 2013. Pro Doc's
contribution to the consolidated OIBA as a percentage of its gross
sales, net of intersegment eliminations, ended the first semester of
fiscal year 2014 at 40.3% compared with 40.2% for the same period of
the previous fiscal year. 
Gains related to the investment in Rite Aid 
During the second quarter of fiscal year 2014, in accordance with the
provisions of Rule 144 under the U.S. Securities Act of 1933, the
Corporation disposed of all of its remaining shares of Rite Aid.
These 105,901,162 common shares were sold at an average price of
US$2.88 per share for a net proceed of $315.8 million (US$302.9
million). As a result, a $158.3 million gain (including a favorable
cumulative currency translation adjustment of $12.6 million) was
reclassified from the condensed consolidated statement of
comprehensive income to the condensed consolidated statement of
income of the Corporation during the second quarter of fiscal year
2014. As 
at August 31, 2013, the Corporation no longer owned any
share in Rite Aid. 
During the first half of fiscal year 2014, the Corporation disposed
of a total of 178,401,162 common shares of Rite Aid. These shares
were sold for a net consideration of $477.9 million. A gain of $212.7
million was reclassified from the condensed consolidated statement of
comprehensive income to the condensed consolidated statement of
income of the Corporation. 
Net profit 
Net profit amounted to $208.2 million ($0.99 per share) during the
quarter ended August 31, 2013 compared with $51.2 million ($0.23 per
share) for the quarter ended September 1, 2012. The increase in net
profit is mainly attributable to the gains of $158.3 million related
to the investment in Rite Aid recognized during the second quarter of
fiscal year 2014. Net profit before gains related to the investment
in Rite Aid and change in fair value of other financial assets
amounted to $49.9 million ($0.24 per share) for the second quarter of
fiscal year 2014 compared with $50.0 million ($0.23 per share) for
the second quarter of the previous fiscal year. 
Net profit during the first half of fiscal year 2014 amounted to
$316.8 million ($1.49 per share) compared with $448.5 million ($2.05
per share) for the same period of fiscal year 2013. The decrease in
net profit is attributable to gains of $212.7 million related to the
investment in Rite Aid recognized during the semester ended August
31, 2013 compared with gains of $348.0 million for the same period of
fiscal year 2013. Net profit before gains related to the investment
in Rite Aid and change in fair value of other financial assets
amounted to $104.1 million ($0.49 per share) for the first half of
fiscal year 2014 compared with $101.6 million ($0.47 per share) for
the same period of the previous fiscal year. 
Information on the PJC network of franchised stores 
The Corporation carries on the franchising activity under the banners
of PJC Jean Coutu, PJC Clinique, PJC Jean Coutu Sante and PJC Jean
Coutu Sante Beaute, operates two distribution centres and coordinates
several other services for the benefit of its franchisees. 
During the quarter ended August 31, 2013, on a same-store basis, the
PJC network's retail sales decreased by 0.1%, pharmacy sales
decreased by 0.5% and front-end sales increased by 0.5%, compared
with the corresponding period last year. Sales of non-prescription
drugs, which represented 8.5% of total retail sales, increased by
1.4% whereas these sales had increased by 3.9% for the corresponding
period of fiscal year 2013. 
During the first half of fiscal year 2014, on a same-store basis, the
PJC network's retail sales grew by 0.3%, pharmacy sales decreased by
0.3% and front-end sales increased by 1.0% compared with the same
period last year. Sales of non-prescription drugs, which represented
8.7% of total retail sales, increased by 2.5% whereas these sales had
increased by 2.2% for the same period of fiscal year 2013. 
Generic drugs reached 67.2% of drugs prescriptions during the second
quarter of fiscal year 2014 compared with 61.0% for the comparable
period of the previous fiscal year. The increase in the number of
generic drugs prescriptions with lower selling prices than brand name
drugs had a deflationary impact on the pharmacy's retail sales. For
the second quarter of fiscal year 2014 the introduction of new
generic drugs reduced pharmacy's retail sales growth by 2.2% and
price reductions of generic drugs reduced the growth of those sales
by 1.1%. 


 
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                                     Second quarter              First half 
Network performance                                                         
 (1)(unaudited)                   2014         2013       2014         2013 
----------------------------------------------------------------------------
Retail sales (in millions of                                                
 dollars)                       $979.8       $975.5   $1,990.0     $1,973.8 
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Retail sales growth (in                                                     
 percentage)                                                                
Total stores                                                                
  Total                            0.4%         3.4%       0.8%         3.9%
  Pharmacy                         0.1%         3.9%       0.3%         4.5%
  Front-end                        1.1%         2.4%       1.6%         2.9%
Same store                                                                  
  Total                           (0.1)%        2.6%       0.3%         3.0%
  Pharmacy                        (0.5)%        3.0%      (0.3)%        3.5%
  Front-end                        0.5%         1.6%       1.0%         2.1%
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Prescriptions growth (in                                                    
 percentage)                                                                
  Total stores                     4.9%         6.1%       4.9%         6.3%
  Same store                       4.4%         5.2%       4.4%         5.2%
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(1)   Franchised outlets' retail sales are not included in the Corporation's
      consolidated financial statements.                                    

 
PJC network of franchised stores expansion 
During the second quarter of fiscal year 2014, there were 7 store
openings in the PJC network of franchised stores, including 2
relocations and 1 store was closed. Also, 2 stores were significantly
renovated or expanded. 
As of August 31, 2013, total selling square footage of the PJC
network amounted to 3,066,000 square feet compared with 3,002,000
square feet as of September 1, 2012. 
Financing activities 
On May 1, 2013, the Corporation announced its intention to repurchase
for cancellation, when it is considered advisable, up to 8,917,000 of
its outstanding Class "A" subordinate voting shares. 
During the quarter ended August 31, 2013, the Corporation did not
repurchase any Class "A" subordinate voting shares. For the first
half of fiscal year 2013, the Corporation repurchased 3,344,100 Class
"A" subordinate voting shares at an average price of $16.71 per share
for a total consideration of $55.9 million including related costs.
An amount of $37.9 million representing the excess of the purchase
price over the carrying value of the repurchased shares was included
in retained earnings for the 26-week period ended August 31, 2013.
The shares repurchased during the first half of fiscal year 2013 were
canceled during this period. 
Furthermore, the Corporation extended its $500.0 million credit
facility maturity date by 1 year to November 2018. All other terms
and conditions of the credit agreement remained unchanged.            
Dividend 
The Board of the Jean Coutu Group declared a quarterly dividend of
$0.085 per share. This dividend will be paid on November 8, 2013, to
all holders of Class "A" subordinate voting shares and holders of
Class "B" shares listed in the Corporation's shareholder ledger as of
October 25, 2013. 
Issuer bid and special dividend 
In a press release issued yesterday, the Corporation announced an
offer to purchase for cancellation up to 22 million of its
outstanding Class "A" subordinate voting shares at a price of $18.50
per share and a special one- time dividend of $0.50 per Class "A"
subordinate voting share and Class "B" share. 
Strategies and outlook 
With its operations and financial flexibility, the Corporation is
very well positioned to capitalize on the growth in the drugstore
retail industry. Demographic trends are expected to contribute to the
growth in prescription drugs' consumption and to the increased use of
pharmaceuticals as the primary intervention in individual healthcare.
Management believes that these trends will continue and that the
Corporation will maintain its growth in revenues through
differentiation and quality of offering and service levels to its
network of franchised stores, with a focus on sales growth, its real
estate program and operating efficiency. The growth in the number of
generic drugs' prescriptions, with lower selling prices than the
branded drugs, will however have a deflationary impact on retail
sales in the pharmacy section but the increase in volume of Pro Doc's
generic drugs will have a positive impact on the consolidated
margins. 
Conference call 
Financial analysts and investors are invited to attend the conference
call to be held on October 9, 2013, at 9:00 AM (ET). The call-in
number is 514-861-2255 or toll free at 1-877-405-9213, access code
7153365 followed by pound sign (#). Media and other interested
individuals are invited to listen to the live or deferred broadcast
on The Jean Coutu Group corporate website at www.jeancoutu.com. A
full replay will also be available by dialling 514-861-2272 or toll
free at 1-800-408-3053 until November 9, 2013. The access code is
7900146, followed by pound sign (#). 
Supporting documentation (Management's discussion and analysis and
investor presentation) is available at www.jeancoutu.com using the
investors' link. Readers may also access additional information and
filings related to the Corporation using the following link to the
www.sedar.com website. 
About The Jean Coutu Group 
The Jean Coutu Group is one of the most trusted names in Canadian
pharmacy retailing. The Corporation operates a network of 411
franchised stores located in the provinces of Quebec, New Brunswick
and Ontario under the banners of PJC Jean Coutu, PJC Clinique, PJC
Sante and PJC Sante Beaute, which employs more than 19,000 people.
Furthermore, the Jean Coutu Group owns Pro Doc Ltd ("Pro Doc"), a
Quebec-based subsidiary and manufacturer of generic drugs. 
This press release contains forward-looking statements that involve
risks and uncertainties, and which are based on the Corporation's
current expectations, estimates, projections and assumptions that
were made by the Corporation in light of its experience and its
perception of historical trends. All statements that address
expectations or projections about the future, including statements
about the Corporation's strategy for growth, costs, operating or
financial results, are forward-looking statements. All statements
other than statements of historical facts included in this press
release, including statements regarding the prospects of the
Corporation's industry and the Corporation's prospects, plans,
financial position and business strategy may constitute forward -
looking statements within the meaning of the Canadian securities
legislation and regulations. Some of the forward-looking statements
may be identified by the use of forward-looking terminology such as
"may", "will", "expect", "intend", "estimate", "project", "could",
"should", "would", "anticipate", "plan", "foresee", "believe" o r
"continue" or the negatives of these terms or variations of them or
similar terminology. Although the Corporation believes that the
expectations reflected in these forward-looking statements are
reasonable, it can give no assurance that these expectations will
prove to have been correct. These statements are not guarantees of
future performance and involve a number of risks, uncertainties and
assumptions.  
These statements do not reflect the potential impact of any
nonrecurring items or of any mergers, acquisitions, dispositions,
asset write- downs or other transactions or charges that may be
announced or that may occur after the date hereof. While the list
below of cautionary statements is not exhaustive, some important
factors that could affect the Corporation's future operating results,
financial position and cash flows and could cause its actual results
to differ materially from those expressed in these forward-looking
statements are changes in the legislation or the regulatory
environment as it relates to the sale of prescription drugs and the
pharmacy exercise, the success of the Corporation's business model,
changes in laws and regulations, or in their interpretations, changes
to tax regulations and accounting pronouncements, the cyclical and
seasonal variations in the industry in which the Corporation
operates, the intensity of competitive activity in the industry in
which the Corporation operates, the supplier and brand reputations,
the Corporation's ability to attract and retain pharmacists, labour
disruptions, including possibly strikes and labour protests, the
accuracy of management's assumptions and other factors that are
beyond the Corporation's control. These and other factors could cause
the Corporation's actual performance and financial results in future
periods to differ materially from any estimates or projections of
future performance or results expressed or implied in those
forward-looking statements. 
Forward-looking statements are provided for the purpose of assisting
in understanding the Corporation's financial position and results of
operation and to present information about management's current
expectations and plans relating to the future. Investors and others
are thus cautioned that such statements may not be appropriate for
other purposes and that they should not place undue reliance on them.
For more information on the risks, uncertainties and assumptions that
would cause the Corporation's actual results to differ from current
expectations, please also refer to the Corporation's public filings
available at www.sedar.com and www.jeancoutu.com.Further details and
descriptions of these and other factors are disclosed in the
Corporation's Annual Information Form under "Risk Factors" and also
in the "Critical accounting estimates", "Risks and uncertainties" and
"Strategies and outlook" sections of the Corporation's annual
management's discussion and analysis. The forward-looking statements
in this press release reflect the Corporation's expectations as of
the date hereof and are subject to change after such date. The
Corporation expressly disclaims any obligation or intention to update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise, unless required by the
applicable securities laws. 


 
THE JEAN COUTU GROUP (PJC) INC.                                             
                                                                            
Condensed consolidated                                                      
 statements of income                      13 weeks                26 weeks 
For the periods ended August                                                
 31, 2013 and September 1,                                                  
 2012                              2013        2012        2013        2012 
----------------------------------------------------------------------------
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(unaudited, in millions of                                                  
 Canadian dollars, unless                                                   
 otherwise noted)                     $           $           $           $ 
                                                                            
Sales                             587.2       593.4     1,201.2     1,207.1 
Other revenues                     66.6        65.3       134.2       133.1 
----------------------------------------------------------------------------
                                  653.8       658.7     1,335.4     1,340.2 
Operating expenses                                                          
  Cost of sales                   511.8       523.5     1,045.8     1,063.4 
  General and operating                                                     
   expenses                        64.8        58.3       130.6       120.5 
----------------------------------------------------------------------------
Operating income before                                                     
 depreciation and                                                           
 amortization                      77.2        76.9       159.0       156.3 
  Depreciation and                                                          
   amortization                     8.0         7.8        16.0        15.6 
----------------------------------------------------------------------------
Operating income                   69.2        69.1       143.0       140.7 
Financing expenses (revenus)        0.3        (1.0)       (0.3)        2.0 
----------------------------------------------------------------------------
Profit before the following                                                 
 items                             68.9        70.1       143.3       138.7 
Gains on sales of investment                                                
 in Rite Aid                      158.3           -       212.7        82.8 
Unrealized gain related to                                                  
 the investment in Rite Aid           -           -           -       265.2 
----------------------------------------------------------------------------
Profit before income taxes        227.2        70.1       356.0       486.7 
Income taxes                       19.0        18.9        39.2        38.2 
----------------------------------------------------------------------------
Net profit                        208.2        51.2       316.8       448.5 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic profit per share, in                                                  
 dollars                           0.99        0.23        1.49        2.05 
Diluted profit per share, in                                                
 dollars                           0.98        0.23        1.49        2.05 
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Condensed consolidated                                                      
 statements of comprehensive                                                
 income                        13 weeks                            26 weeks 
For the periods ended August                                                
 31, 2013 and September 1,                                                  
 2012                              2013        2012        2013        2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(unaudited, in millions of                                                  
 Canadian dollars)                    $           $           $           $ 
                                                                            
Net profit                        208.2        51.2       316.8       448.5 
Other comprehensive income,                                                 
 net of taxes of nil                                                        
Items that will not be                                                      
 reclassified subsequently                                                  
 to net profit:                                                             
  Defined benefit plans                                                     
   remeasurements                     -           -           -         0.1 
Items that will be                                                          
 reclassified subsequently                                                  
 to net profit:                                                             
  Available-for-sale                                                        
   financial asset:                                                         
    Change in fair value           (5.9)      (16.9)      171.9       (55.9)
    Reclassification of                                                     
     gains on sales to net                                                  
     profit                      (158.3)          -      (212.7)          - 
----------------------------------------------------------------------------
                                 (164.2)      (16.9)      (40.8)      (55.8)
----------------------------------------------------------------------------
Total comprehensive income         44.0        34.3       276.0       392.7 
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THE JEAN COUTU GROUP (PJC) INC.                                             
Condensed consolidated statements of changes in equity                      
                                                                            
For the periods ended August 31, 2013 and September 1, 2012                 
----------------------------------------------------------------------------
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(unaudited, in millions of Canadian dollars)                                
                                              Investment                    
                 Capital Treasury Contributed         in  Retained    Total 
                   stock    stock     surplus   Rite Aid  earnings   equity 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                       $        $           $          $         $        $ 
Balance at March                                                            
 2, 2013           537.1     (2.2)        1.7       40.8     533.4  1,110.8 
  Net profit           -        -           -          -     316.8    316.8 
  Other                                                                     
   comprehensive                                                            
   income              -        -           -      (40.8)        -    (40.8)
----------------------------------------------------------------------------
Total                                                                       
 comprehensive                                                              
 income                -        -           -      (40.8)    316.8    276.0 
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Redemption of                                                               
 capital stock     (18.0)       -           -          -     (37.9)   (55.9)
Dividends              -        -           -          -     (36.2)   (36.2)
Share-based                                                                 
 compensation                                                               
 cost                  -        -         0.5          -         -      0.5 
Options exercised    7.3        -        (0.5)         -         -      6.8 
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Balance at August                                                           
 31, 2013          526.4     (2.2)        1.7          -     776.1  1,302.0 
----------------------------------------------------------------------------
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Balance at March                                                            
 3, 2012           559.7     (1.0)        1.9          -      88.6    649.2 
  Net profit           -        -           -          -     448.5    448.5 
  Other                                                                     
   comprehensive                                                            
   income              -        -           -      (55.9)      0.1    (55.8)
----------------------------------------------------------------------------
Total                                                                       
 comprehensive                                                              
 income                -        -           -      (55.9)    448.6    392.7 
----------------------------------------------------------------------------
Redemption of                                                               
 capital stock     (13.8)       -           -          -     (24.9)   (38.7)
Dividends              -        -           -          -     (30.6)   (30.6)
Share-based                                                                 
 compensation                                                               
 cost                  -        -         0.4          -         -      0.4 
Options exercised    1.5        -        (0.2)         -         -      1.3 
----------------------------------------------------------------------------
Balance at                                                                  
 September 1,                                                               
 2012              547.4     (1.0)        2.1      (55.9)    481.7    974.3 
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THE JEAN COUTU GROUP (PJC) INC.                                             
Condensed consolidated statements of financial               As at     As at
position                                                August 31,  March 2,
                                                              2013      2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(unaudited, in millions of Canadian dollars)                     $         $
                                                                            
Current assets                                                              
  Cash and temporary investment                              463.4      20.0
  Trade and other receivables                                199.4     199.6
  Inventories                                                200.4     190.1
  Prepaid expenses                                             6.8      12.2
----------------------------------------------------------------------------
                                                             870.0     421.9
Non-current assets                                                          
  Long-term receivables from franchisees                      25.1      24.9
  Investment in Rite Aid                                         -     306.0
  Investment in associates and joint venture                   9.7       8.3
  Property and equipment                                     349.7     359.5
  Investment property                                         24.6      17.4
  Intangible assets                                          200.2     195.0
  Goodwill                                                    36.0      36.0
  Deferred tax                                                11.0      11.2
  Other long-term assets                                      13.3      12.5
----------------------------------------------------------------------------
Total assets                                               1,539.6   1,392.7
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Current liabilities                                                         
  Bank overdraft                                                 -      21.6
  Trade and other payables                                   201.4     225.2
  Income taxes payable                                        19.0      18.5
----------------------------------------------------------------------------
                                                             220.4     265.3
Non-current liabilities                                                     
  Deferred tax                                                 0.8       0.8
  Other long-term liabilities                                 16.4      15.8
----------------------------------------------------------------------------
Total liabilities                                            237.6     281.9
----------------------------------------------------------------------------
                                                                            
Equity                                                     1,302.0   1,110.8
----------------------------------------------------------------------------
Total liabilities and equity                               1,539.6   1,392.7
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THE JEAN COUTU GROUP (PJC) INC.                                             
                                                                            
Condensed consolidated statements of cash                                   
 flows                                             13 weeks        26 weeks 
For the periods ended August 31, 2013 and                                   
September 1, 2012                               2013   2012    2013    2012 
----------------------------------------------------------------------------
(unaudited, in millions of Canadian dollars)       $      $       $       $ 
                                                                            
                                                                            
Operating activities                                                        
Net profit                                     208.2   51.2   316.8   448.5 
Adjustments:                                                                
  Depreciation and amortization                  8.0    7.8    16.0    15.6 
  Change in fair value of other financial                                   
   assets                                          -   (1.2)      -     1.1 
  Gains on sales of investment in Rite Aid    (158.3)     -  (212.7)  (82.8)
  Unrealized gain related to the investment                                 
   in Rite Aid                                     -      -       -  (265.2)
  Interest expense (income)                     (1.2)   0.2    (1.6)    0.6 
  Income taxes                                  19.0   18.9    39.2    38.2 
  Others                                         0.2    1.2     0.7     1.9 
----------------------------------------------------------------------------
                                                75.9   78.1   158.4   157.9 
Net change in non-cash asset and liability                                  
 items                                         (20.1) (18.2)  (26.9)  (17.3)
Interest received (paid)                         0.9   (0.2)    1.0    (0.7)
Income taxes paid                              (19.8) (25.2)  (38.5)  (45.7)
----------------------------------------------------------------------------
Cash flow related to operating activities       36.9   34.5    94.0    94.2 
----------------------------------------------------------------------------
Investing activities                                                        
  Receipts from other financial assets             -   17.9       -    17.9 
  Proceeds from disposal of the investment                                  
   in Rite Aid                                 315.8      -   477.9    82.8 
  Investment in an associate                    (1.3)     -    (1.3)      - 
  Purchase of property and equipment            (4.7)  (3.3)   (9.2)   (9.8)
  Proceeds from disposal of property and                                    
   equipment                                     1.6    0.7     1.6     1.1 
  Purchase of investment property                  -      -    (0.2)   (0.1)
  Proceeds from disposal of investment                                      
   property                                      0.6    0.6     0.6     0.6 
  Net change in long-term receivables from                                  
   franchisees                                  (0.3)  (1.5)   (0.6)   (1.4)
  Purchase of intangible assets                (10.6)  (5.9)  (10.6)  (12.8)
----------------------------------------------------------------------------
Cash flow related to investing activities      301.1    8.5   458.2    78.3 
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Financing activities                                                        
  Net change in revolving credit facility          -   (1.9)      -  (114.8)
  Issuance of capital stock                      5.1    0.5     6.8     1.3 
  Redemption of capital stock                  (47.0) (31.3)  (57.8)  (37.0)
  Dividends paid                               (18.0) (15.3)  (36.2)  (30.6)
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Cash flow related to financing activities      (59.9) (48.0)  (87.2) (181.1)
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Net change in cash and cash equivalents        278.1   (5.0)  465.0    (8.6)
Cash and cash equivalents, beginning of                                     
 period                                        185.3   (8.6)   (1.6)   (5.0)
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Cash and cash equivalents, end of period       463.4  (13.6)  463.4   (13.6)
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THE JEAN COUTU GROUP (PJC) INC.                                             
                                                                            
Unaudited additional informations                                           
                                                                            
For the periods ended August 31, 2013 and September 1, 2012                 
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(in millions of Canadian dollars, except per share amounts)                 

 
Non-IFRS financial measure 
Net profit (or net profit per share) before gains related to the
investment in Rite Aid and change in fair value of other financial
assets is a non-IFRS measure. The Corporation believes that it is
useful for investors to be aware of significant items of an unusual
or non-recurring nature that have adversely or positively affected
the IFRS measures applied by the Corporation, and that the
above-mentioned non-IFRS measure provides investors with a
performance measure to compare the results between periods with no
regards to these items. The Corporation's measure excluding certain
items has no standardized meaning prescribed by IFRS and is not
necessarily comparable to similar measures presented by other
corporations. Therefore, it should not be considered in isolation. 
Net profit and basic profit per share are reconciled hereunder to net
profit (or net profit per share) before gains related to the
investment in Rite Aid and change in fair value of other financial
assets. All amounts are net of income taxes when applicable. 


 
                                                   13 weeks        26 weeks 
                                                 2013  2012    2013    2012 
                                             -------------------------------
                                                    $     $       $       $ 
Net profit (1)                                  208.2  51.2   316.8   448.5 
Gains on sales of investment in Rite Aid       (158.3)    -  (212.7)  (82.8)
Unrealized gain related to the investment in                                
 Rite Aid                                           -     -       -  (265.2)
Change in fair value of third party asset-                                  
 backed commercial paper and related options                                
 of repayment                                       -  (1.2)      -     1.1 
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Net profit before gains related to the                                      
 investment in Rite Aid and change in fair                                  
 value of other financial assets                 49.9  50.0   104.1   101.6 
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Basic profit per share                           0.99  0.23    1.49    2.05 
Gains on sales of investment in Rite Aid        (0.75)    -   (1.00)  (0.37)
Unrealized gain related to the investment in                                
 Rite Aid                                           -     -       -   (1.21)
Change in fair value of third party asset-                                  
 backed commercial paper and related options                                
 of repayment                                       -     -       -       - 
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Net profit per share before gains related to                                
 the investment in Rite Aid and change in                                   
 fair value of other financial assets            0.24  0.23    0.49    0.47 
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(1)  Readers are referred to Note 3 of the Corporation's unaudited interim  
     Consolidated Financial Statements for the second quarter of fiscal year
     2014 for explanations of the changes in accounting policies affecting  
     fiscal year 2013.                                                      

Contacts:
Source:
The Jean Coutu Group (PJC) Inc.
Andre Belzile
Senior Vice-President, Finance and Corporate Affairs
(450) 646-9760 
Information:
Helene Bisson
Vice-President, Communications
(450) 646-9611, Ext. 1165