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

The Jean Coutu Group: Third Quarter of Fiscal Year 2014 Results 
LONGUEUIL, QUEBEC -- (Marketwired) -- 01/09/14 -- The Jean Coutu
Group (PJC) Inc. (TSX:PJC.A) (the "Corporation" or the "Jean Coutu
Group") reported its financial results today for the quarter ended
November 30, 2013. 
Summary of results 
(Unaudited, in millions of Canadian dollars, except per share
amounts) 


 
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                                       Third quarter          39-week period
                                    2014        2013        2014        2013
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                                       $           $           $           $
Revenues                           712.5       716.6     2,047.9     2,056.8
Operating income before                                                     
 amortization ("OIBA")              88.0        85.1       247.0       241.4
Gains related to the                                                        
 investment in Rite Aid                -           -       212.7       348.0
Net profit                          62.5        56.2       379.3       504.7
  Per share                         0.30        0.26        1.79        2.32
Net profit before gains                                                     
 related to the investment                                                  
 in Rite Aid and change in                                                  
 fair value of other                                                        
 financial assets (1)               62.5        56.2       166.6       157.8
  Per share                         0.30        0.26        0.79        0.72
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(1)  See the "Non-IFRS financial measure" section. 
Highlights 


 
--  Operating income before amortization ("OIBA") increased by 3.4% for the
    third quarter of fiscal year 2014, despite the deflationary impact on
    pharmacy sales of a strong generic drugs penetration. 
--  22,000,000 Class "A" Subordinate Voting Shares were repurchased at a
    price of $18.50 per share following a substantial issuer bid and a
    special dividend of $0.50 per share was declared to all Class "A" and
    "B" shareholders. 
--  The Corporation will benefit from a tax deduction for donation to a
    charitable organization representing a current income tax saving of
    $53.6 million which will be recognized in the contributed surplus during
    the fourth quarter of fiscal year 2014. 

 
Financial results 
"The results of the third quarter of fiscal 2014 highlight the
performance of our organization since the operating income and the
profit per share recorded a significant increase in spite of a
growingly competitive environment and a restrictive regulatory
context" stated Mr. Francois J. Coutu, President and Chief Executive
Officer. "Our priority over the coming months will consist to
continue the implementation of dynamic strategic initiatives that
will contribute to increase sales, pursue our growth and maintain our
leadership." 
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 $712.5 million during the quarter ended November
30, 2013, compared with $716.6 million in the quarter ended December
1, 2012. During the 39-week period of fiscal year 2014, revenues
amounted to $2,047.9 million compared with $2,056.8 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. 
OIBA 
OIBA increased by $2.9 million to $88.0 million during the quarter
ended November 30, 2013 compared with $85.1 million for the quarter
ended December 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 third quarter of fiscal year 2014
at 12.4% compared with 11.9% for the same quarter of the previous
fiscal year. 
For the 39-week period of fiscal year 2014, the Corporation's OIBA
increased by $5.6 million amounting to $247.0 million compared with
$241.4 million for the same period of fiscal year 2013. As a
percentage of revenues, OIBA ended the 39-week period of 2014 at
12.1% 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 $47.9 million during the quarter ended November 30, 2013,
compared with $41.4 million for the quarter ended December 1, 2012.
Pro Doc's contribution to the consolidated OIBA amounted to $21.6
million during the quarter ended November 30, 2013, compared with
$16.1 million for the quarter ended December 1, 2012. Pro Doc's
contribution to the consolidated OIBA as a percentage of gross sales,
net of intersegment eliminations, ended the third quarter of fiscal
year 2014 at 45.1% compared with 38.9% for the same period of the
previous fiscal year. 
Gross sales of Pro Doc drugs, net of intersegments eliminations,
amounted to $138.2 million during the 39-week period of fiscal year
2014, compared with $117.5 million for the same period of fiscal year
2013. Pro Doc's contribution to the consolidated OIBA amounted to
$58.0 million during the 39-week period of fiscal year 2014, compared
with $46.7 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 39-week period of
fiscal year 2014 at 42.0% compared with 39.7% for the same period of
the previous fiscal year. 
Gains related to the investment in Rite Aid 
During the 39-week period 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 $62.5 million ($0.30 per share) during the
quarter ended November 30, 2013 compared with $56.2 million ($0.26
per share) for the quarter ended December 1, 2012. Basic profit per
share would have been $0.33 for the third quarter of fiscal year 2014
excluding for the whole period the shares repurchased in the course
of the substantial issuer bid completed in the month of November
2013. 
Net profit during the 39-week period of fiscal year 2014 amounted to
$379.3 million ($1.79 per share) compared with $504.7 million ($2.32
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 39-week period ended
November 30, 2013 compared with $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 $166.6 million ($0.79 per share) for the 39-week period
of fiscal year 2014 compared with $157.8 million ($0.72 per share)
for the same period of the previous fiscal year. Basic profit per
share before gains related to the investment in Rite Aid and change
in fair value of other financial assets would have been $0.88 for the
39-week period ended November 30, 2013 excluding for the whole period
the shares repurchased in the course of the substantial issuer bid
and the normal course issuer bid. 
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 November 30, 2013, on a same-store basis,
the PJC network's retail sales decreased by 1.3%, pharmacy sales
decreased by 1.6% and front-end sales decreased by 1.3%, compared
with the corresponding period last year. Sales of non-prescription
drugs, which represented 9.0% of total retail sales, were stable
whereas these sales had increased by 2.2% for the corresponding
period of fiscal year 2013. 
During the 39-week period of fiscal year 2014, on a same-store basis,
the PJC network's retail sales decreased by 0.3%, pharmacy sales
decreased by 0.7% and front-end sales increased by 0.2% compared with
the same period last year. Sales of non-prescription drugs, which
represented 8.8% of total retail sales, increased by 1.6% whereas
these sales had increased by 2.2% for the same period of fiscal year
2013. 
Generic drugs reached 66.7% of prescriptions during the third quarter
of fiscal year 2014 compared with 61.8% of prescriptions 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 third quarter of fiscal year 2014 the introduction of
new generic drugs reduced pharmacy's retail sales growth by 1.0% and
price reductions of generic drugs also reduced the growth of those
sales by 1.0%. 


 
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                                         Third quarter      39-week period  
Network performance (1)(unaudited)      2014      2013      2014      2013  
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Retail sales (in millions of                                                
 dollars)                           $1,012.7  $1,018.7  $3,002.7  $2,992.5  
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Retail sales growth (in percentage)                                         
Total stores                                                                
  Total                                 (0.6)%     3.5 %     0.3 %     3.7 %
  Pharmacy                              (0.8)%     3.7 %    (0.1)%     4.2 %
  Front-end                             (0.6)%     2.8 %     0.8 %     2.8 %
Same store                                                                  
  Total                                 (1.3)%     2.6 %    (0.3)%     2.8 %
  Pharmacy                              (1.6)%     2.7 %    (0.7)%     3.2 %
  Front-end                             (1.3)%     2.0 %     0.2 %     2.1 %
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Prescriptions growth (in percentage)                                        
  Total stores                           4.5 %     5.9 %     4.8 %     6.2 %
  Same store                             4.0 %     4.8 %     4.2 %     5.1 %
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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 third quarter of fiscal year 2014, there were 4 store
openings in the PJC network of franchised stores, including 2
relocations. Also, 6 stores were significantly renovated or expanded. 
As of November 30, 2013, total selling square footage of the PJC
network amounted to 3,083,000 square feet compared with 3,032,000
square feet as of December 1, 2012. 
Issuer bids 
On May 1, 2013, the Corporation announced its intention to repurchase
for cancelation under a normal course issuer bid, when it is
considered advisable, up to 8,917,000 of its outstanding Class "A"
Subordinate Voting Shares. For the quarter ended November 30, 2013,
the Corporation did not repurchase any Class "A" Subordinate Voting
Shares under this share repurchase program. 
For the 39-week period ended November 30, 2013, the Corporation
repurchased under its normal course issuer bid 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. The shares repurchased during this period were
cancelled during this period. 
During the third quarter of fiscal year 2014, the Corporation also
repurchased for cancellation 22 million of its Class "A" Subordinate
Voting Shares at a price of $18.50 per share for a total
consideration, including related costs, of $407.5 million under a
substantial issuer bid. An amount of $299.8 million representing the
excess of the purchase price over the carrying value of the
repurchased shares was included in retained earnings for the 13-week
period ended November 30, 2013.  
As at November 30, 2013 the total number of Class "A" Subordinate
Voting Shares issued was 85.5 million (100.0 million as at March 2,
2013) and the number of class "B" shares was 104.0 million (114.4
million as at March 2, 2013), for a total of 189.5 million shares
issued (214.4 million as at March 2, 2013). 
Dividends 
The Board of the Jean Coutu Group declared a quarterly dividend of
$0.085 per share. This dividend will be paid on February 7, 2014, to
all holders of Class "A" Subordinate Voting Shares and holders of
Class "B" shares listed in the Corporation's shareholder ledger as of
January 24, 2014.  
Furthermore, a special cash dividend of $0.50 per share was paid on
December 2, 2013 to all Class "A" Subordinate Voting Shares and Class
"B" shareholders listed in the Corporation's shareholder ledger on
November 25, 2013. 
Income tax deduction for donation to a charitable organization 
On January 8, 2014, the Corporation acquired without consideration a
tax deduction for donation to a charitable organization of $199.2
million from a company controlled by Mr. Jean Coutu. The current
income tax saving of $53.6 million resulting from this tax deduction
will be recognized in contributed surplus during the 13-week period
ending March 1, 2014. 
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 volume increase in the generic
drugs operating segme
nt will have a positive impact on the
consolidated margins. 
Conference call 
Financial analysts and investors are invited to attend the conference
call on the third quarter of fiscal year 2014 financial results to be
held on January 9, 2014, 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 February 9, 2014. The access code is 1189523
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 413
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" or "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, th
e
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 out
look" 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                 39 weeks
For the periods ended                                                       
 November 30, 2013 and                                                      
 December 1, 2012                 2013         2012        2013         2012
----------------------------------------------------------------------------
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(unaudited, in millions of                                                  
 Canadian dollars, unless                                                   
 otherwise noted)                    $            $           $            $
                                                                            
Sales                            642.3        647.6     1,843.5      1,854.7
Other revenues                    70.2         69.0       204.4        202.1
----------------------------------------------------------------------------
                                 712.5        716.6     2,047.9      2,056.8
Operating expenses                                                          
  Cost of sales                  556.3        569.1     1,602.1      1,632.5
  General and operating                                                     
   expenses                       68.2         62.4       198.8        182.9
----------------------------------------------------------------------------
Operating income before                                                     
 depreciation and                                                           
 amortization                     88.0         85.1       247.0        241.4
  Depreciation and                                                          
   amortization                    8.1          7.9        24.1         23.5
----------------------------------------------------------------------------
Operating income                  79.9         77.2       222.9        217.9
Financing expenses                                                          
 (revenus)                        (1.5)         0.1        (1.8)         2.1
----------------------------------------------------------------------------
Profit before the                                                           
 following items                  81.4         77.1       224.7        215.8
Gains on sales of                                                           
 investment in Rite Aid              -            -       212.7         82.8
Unrealized gain related to                                                  
 the investment in Rite                                                     
 Aid                                 -            -           -        265.2
----------------------------------------------------------------------------
Profit before income taxes        81.4         77.1       437.4        563.8
Income taxes                      18.9         20.9        58.1         59.1
----------------------------------------------------------------------------
Net profit                        62.5         56.2       379.3        504.7
----------------------------------------------------------------------------
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Basic profit per share, in                                                  
 dollars                          0.30         0.26        1.79         2.32
Diluted profit per share,                                                   
 in dollars                       0.30         0.26        1.79         2.31
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Condensed consolidated                                                      
 statements of                                                              
 comprehensive income                    13 weeks                  39 weeks 
For the periods ended                                                       
 November 30, 2013 and                                                      
 December 1, 2012                2013        2012         2013         2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(unaudited, in millions                                                     
 of Canadian dollars)               $           $            $            $ 
                                                                            
                                                                            
Net profit                       62.5        56.2        379.3        504.7 
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            -       (32.0)       171.9        (87.9)
    Reclassification of                                                     
     gains on sales to                                                      
     net profit                     -           -       (212.7)           - 
----------------------------------------------------------------------------
                                    -       (32.0)       (40.8)       (87.8)
----------------------------------------------------------------------------
Total comprehensive                                                         
 income                          62.5        24.2        338.5        416.9 
----------------------------------------------------------------------------
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THE JEAN COUTU GROUP (PJC) INC. 
Condensed consolidated statements of changes in equity       


 
For the periods ended November 30, 2013 and December 1, 2012                
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(unaudited, in millions of Canadian dollars)                                
                                                     Treasury   Contributed 
                                  Capital stock         stock       surplus 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                        
      $             $             $ 
                                                                            
Balance at March 2, 2013                  537.1          (2.2)          1.7 
                                                                            
  Net profit                                  -             -             - 
  Other comprehensive income                  -             -             - 
----------------------------------------------------------------------------
Total comprehensive income                    -             -             - 
----------------------------------------------------------------------------
Redemption of capital stock              (125.7)            -             - 
Dividends                                     -             -             - 
Share-based compensation cost                 -             -           0.7 
Options exercised                           8.0             -          (0.5)
----------------------------------------------------------------------------
Balance at November 30, 2013              419.4          (2.2)          1.9 
----------------------------------------------------------------------------
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Balance at March 3, 2012                  559.7          (1.0)          1.9 
                                                                            
  Net profit                                  -             -             - 
  Other comprehensive income                  -             -             - 
----------------------------------------------------------------------------
Total comprehensive income                    -             -             - 
----------------------------------------------------------------------------
Redemption of capital stock               (20.7)            -             - 
Dividends                                     -             -             - 
Share-based compensation cost                 -             -           0.5 
Options exercised                           2.2             -          (0.3)
----------------------------------------------------------------------------
Balance at December 1, 2012               541.2          (1.0)          2.1 
----------------------------------------------------------------------------
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                                  Investment in      Retained               
                                       Rite Aid      earnings  Total equity 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                              $             $             $ 
                                                                            
Balance at March 2, 2013                   40.8         533.4       1,110.8 
                                                                            
  Net profit                                  -         379.3         379.3 
  Other comprehensive income              (40.8)            -         (40.8)
----------------------------------------------------------------------------
Total comprehensive income                (40.8)        379.3         338.5 
----------------------------------------------------------------------------
Redemption of capital stock                   -        (337.7)       (463.4)
Dividends                                     -        (148.8)       (148.8)
Share-based compensation cost                 -             -           0.7 
Options exercised                             -             -           7.5 
----------------------------------------------------------------------------
Balance at November 30, 2013                  -         426.2         845.3 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Balance at March 3, 2012                      -          88.6         649.2 
                                                                            
  Net profit                                  -         504.7         504.7 
  Other comprehensive income              (87.9)          0.1         (87.8)
----------------------------------------------------------------------------
Total comprehensive income                (87.9)        504.8         416.9 
----------------------------------------------------------------------------
Redemption of capital stock                   -         (37.0)        (57.7)
Dividends                                     -         (45.8)        (45.8)
Share-based compensation cost                 -             -           0.5 
Options exercised                             -             -           1.9 
----------------------------------------------------------------------------
Balance at December 1, 2012               (87.9)        510.6         965.0 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
THE JEAN COUTU GROUP (PJC) INC. 


 
Condensed consolidated statements of financial            As at       As at 
 position                                           November 30,    March 2,
                                                            2013        2013
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(unaudited, in millions of Canadian dollars)                   $           $
                                                                            
Current assets                                                              
  Cash and temporary investment                            118.8        20.0
  Trade and other receivables                              229.0       199.6
  Inventories                                              198.5       190.1
  Prepaid expenses                                           5.8        12.2
----------------------------------------------------------------------------
                                                           552.1       421.9
Non-current assets                                                          
  Long-term receivables from franchisees                    23.3        24.9
  Investment in Rite Aid                                   
    -       306.0
  Investment in associates and joint venture                11.2         8.3
  Property and equipment                                   360.7       359.5
  Investment property                                       24.4        17.4
  Intangible assets                                        204.1       195.0
  Goodwill                                                  36.0        36.0
  Deferred tax                                              11.6        11.2
  Other long-term assets                                    13.8        12.5
----------------------------------------------------------------------------
Total assets                                             1,237.2     1,392.7
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Current liabilities                                                         
  Bank overdraft                                               -        21.6
  Trade and other payables                                 240.8       225.2
  Special dividend payable                                  94.7           -
  Income taxes payable                                      38.7        18.5
----------------------------------------------------------------------------
                                                           374.2       265.3
Non-current liabilities                                                     
  Deferred tax                                               0.8         0.8
  Other long-term liabilities                               16.9        15.8
----------------------------------------------------------------------------
Total liabilities                                          391.9       281.9
----------------------------------------------------------------------------
                                                                            
Equity                                                     845.3     1,110.8
----------------------------------------------------------------------------
Total liabilities and equity                             1,237.2     1,392.7
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
THE JEAN COUTU GROUP (PJC) INC. 


 
Condensed consolidated                                                      
 statements of cash                                                         
 flows                                   13 weeks                  39 weeks 
For the periods ended                                                       
 November 30, 2013 and                                                      
 December 1, 2012               2013         2012         2013         2012 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(unaudited, in millions                                                     
 of Canadian dollars)              $            $            $            $ 
                                                                            
Operating activities                                                        
Net profit                      62.5         56.2        379.3        504.7 
Adjustments:                                                                
  Depreciation and                                                          
   amortization                  8.1          7.9         24.1         23.5 
  Change in fair value                                                      
   of other financial                                                       
   assets                          -            -            -          1.1 
  Gains on sales of                                                         
   investment in Rite                                                       
   Aid                             -            -       (212.7)       (82.8)
  Unrealized gain                                                           
   related to the                                                           
   investment in Rite                                                       
   Aid                             -            -            -       (265.2)
  Interest expense                                                          
   (income)                     (1.8)         0.1         (3.4)         0.7 
  Income taxes                  18.9         20.9         58.1         59.1 
  Others                         0.7          1.7          1.4          3.6 
----------------------------------------------------------------------------
                                88.4         86.8        246.8        244.7 
Net change in non-cash                                                      
 asset and liability                                                        
 items                          12.7         (0.8)       (14.2)       (18.1)
Interest received (paid)         1.8         (0.1)         2.8         (0.8)
Income taxes refund                                                         
 (paid)                          0.2        (13.4)       (38.3)       (59.1)
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Cash flow related to                                                        
 operating activities          103.1         72.5        197.1        166.7 
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Investing activities                                                        
  Receipts from other                                                       
   financial assets                -            -            -         17.9 
  Proceeds from disposal                                                    
   of the investment in                                                     
   Rite Aid                        -            -        477.9         82.8 
  Investment in an                                                          
   associate                    (1.4)        (2.7)        (2.7)        (2.7)
  Purchase of property                                                      
   and equipment               (15.3)        (6.8)       (24.5)       (16.6)
  Proceeds from disposal                                                    
   of property and                                                          
   equipment                       -            -          1.6          1.1 
  Purchase of investment                                                    
   property                        -            -         (0.2)        (0.1)
  Proceeds from disposal                                                    
   of investment                                                            
   property                        -          3.0          0.6          3.6 
  Net change in long-                                                       
   term receivables from                                                    
   franchisees                   0.7          0.6          0.1         (0.8)
  Purchase of intangible                                                    
   assets                       (6.7)        (3.3)       (17.3)       (16.1)
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Cash flow related to                                                        
 investing activities          (22.7)        (9.2)       435.5         69.1 
----------------------------------------------------------------------------
                                                                            
Financing ac
tivities                                                        
  Net change in                                                             
   revolving credit                                                         
   facility                        -        (35.0)           -       (149.8)
  Financing fees                (0.3)        (0.3)        (0.3)        (0.3)
  Issuance of capital                                                       
   stock                         0.7          0.6          7.5          1.9 
  Redemption of capital                                                     
   stock                      (407.5)       (18.8)      (465.3)       (55.8)
  Dividends paid               (17.9)       (15.2)       (54.1)       (45.8)
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Cash flow related to                                                        
 financing activities         (425.0)       (68.7)      (512.2)      (249.8)
----------------------------------------------------------------------------
Net change in cash and                                                      
 cash equivalents             (344.6)        (5.4)       120.4        (14.0)
Cash and cash                                                               
 equivalents, beginning                                                     
 of period                     463.4        (13.6)        (1.6)        (5.0)
----------------------------------------------------------------------------
Cash and cash                                                               
 equivalents, end of                                                        
 period                        118.8        (19.0)       118.8        (19.0)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

 
THE JEAN COUTU GROUP (PJC) INC. 
Unaudited additional informations             


 
For the periods ended November 30, 2013 and December 1, 2012                
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(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                 39 weeks 
                                  2013        2012        2013         2012 
                          --------------------------------------------------
                                     $           $           $            $ 
                                                                            
Net profit (1)                    62.5        56.2       379.3        504.7 
Gains on sales of                                                           
 investment in Rite Aid              -           -      (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                           -           -           -          1.1 
----------------------------------------------------------------------------
Net profit before gains                                                     
 related to the investment                                                  
 in Rite Aid and change in                                                  
 fair value of other                                                        
 financial assets                 62.5        56.2       166.6        157.8 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Basic profit per share            0.30        0.26        1.79         2.32 
Gains on sales of                                                           
 investment in Rite Aid              -           -       (1.00)       (0.38)
Unrealized gain related to                                                  
 the investment in Rite                                                     
 Aid                                 -           -           -        (1.22)
Change in fair value of                                                     
 third party asset-backed                                                   
 commercial paper and                                                       
 related options of                                                         
 repayment                           -           -           -            - 
----------------------------------------------------------------------------
Net profit per share                                                        
 before gains related to                                                    
 the investment in Rite                                                     
 Aid and change in fair                                                     
 value of other financial                                                   
 assets                           0.30        0.26        0.79         0.72 
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(1) Readers are referred to Note 3 of the Corporation's unaudited interim 
    Consolidated Financial Statements for the third 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
 
 
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