BRAMPTON, ON, November 18, 2015 - Loblaw Companies Limited (TSX:L.TO ) ("Loblaw" or the "Company") today announced its unaudited financial results for the third quarter ended October 10, 2015. The Company's third quarter report will be available in the Investor Centre section of the Company's website at loblaw.ca and will be filed with SEDAR and available at sedar.com.
"In the third quarter, our business remained focused on delivering the best in food experience, best in health and beauty, operational excellence, and growth," reported Galen G. Weston, President and Executive Chairman of Loblaw Companies Limited.
"While the grocery industry remained intensely competitive, and the regulatory environment in healthcare challenging, we maintained a stable trading platform, achieved incremental efficiencies and delivered planned synergies. Having reached our deleveraging target during the quarter, we are now in a position to accelerate our focus on returning capital to shareholders."
2015 THIRD QUARTER HIGHLIGHTS
See "News Release Endnotes" at the back of this News Release
CONSOLIDATED RESULTS OF OPERATIONS
For the periods ended October 10, 2015 | |||||||||||||||||||||||||||||||
and October 4, 2014 | 2015 | 2014(3) | 2015 | 2014(3) | |||||||||||||||||||||||||||
(millions of Canadian dollars except | |||||||||||||||||||||||||||||||
where otherwise indicated) | (16 weeks) | (16 weeks) | $ Change | % Change | (40 weeks) | (40 weeks) | $ Change | % Change | |||||||||||||||||||||||
Revenue | $ | 13,946 | $ | 13,599 | $ | 347 | 2.6% | $ | 34,529 | $ | 31,198 | $ | 3,331 | 10.7% | |||||||||||||||||
Adjusted EBITDA(2) | $ | 1,022 | $ | 1,001 | $ | 21 | 2.1% | $ | 2,668 | $ | 2,277 | $ | 391 | 17.2% | |||||||||||||||||
Adjusted EBITDA margin(2) | 7.3% | 7.4% | 7.7% | 7.3% | |||||||||||||||||||||||||||
Net earnings (loss) | |||||||||||||||||||||||||||||||
attributable to shareholders | |||||||||||||||||||||||||||||||
of the Company | $ | 170 | $ | 142 | $ | 28 | 19.7% | $ | 501 | $ | (194) | $ | 695 | 358.2% | |||||||||||||||||
Net earnings (loss) available | |||||||||||||||||||||||||||||||
to common shareholders | |||||||||||||||||||||||||||||||
of the Company(i) | 166 | 142 | 24 | 16.9% | 497 | (194) | 691 | 356.2% | |||||||||||||||||||||||
Adjusted net earnings available | |||||||||||||||||||||||||||||||
to common shareholders | |||||||||||||||||||||||||||||||
of the Company(2) | 408 | 371 | 37 | 10.0% | 1,059 | 821 | 238 | 29.0% | |||||||||||||||||||||||
Basic net earnings (loss) | |||||||||||||||||||||||||||||||
per common share ($) | $ | 0.40 | $ | 0.34 | $ | 0.06 | 17.6% | $ | 1.21 | $ | (0.52) | $ | 1.73 | 332.7% | |||||||||||||||||
Adjusted basic net earnings per | |||||||||||||||||||||||||||||||
common share(2) ($) | $ | 0.99 | $ | 0.90 | $ | 0.09 | 10.0% | $ | 2.57 | $ | 2.22 | $ | 0.35 | 15.8% | |||||||||||||||||
(i) | Net earnings (loss) available to common shareholders of the Company is net earnings (loss) attributable to shareholders of the Company net of dividends paid on the Company's Second Preferred Shares, Series B. |
Adjusted net earnings available to common shareholders of the Company(2) were $408 million ($0.99 per common share) in the third quarter of 2015 compared to $371 million ($0.90 per common share) in the third quarter of 2014. The increase of $37 million ($0.09 per common share) was primarily due to:
Net earnings available to common shareholders of the Company were $166 million ($0.40 per common share) in the third quarter of 2015 compared to $142 million ($0.34 per common share) in the third quarter of 2014 and included the year-over-year impact of the following items:
REPORTABLE OPERATING SEGMENTS
Retail Segment
For the periods ended October 10, 2015 | ||||||||||||||||||||||||||||||
and October 4, 2014 | 2015 | 2014(3) | 2015 | 2014(3) | ||||||||||||||||||||||||||
(millions of Canadian dollars except | ||||||||||||||||||||||||||||||
where otherwise indicated) | (16 weeks) | (16 weeks) | $ Change | % Change | (40 weeks) | (40 weeks) | $ Change | % Change | ||||||||||||||||||||||
Sales | $ | 13,715 | $ | 13,375 | $ | 340 | 2.5% | $ | 33,863 | $ | 30,567 | $ | 3,296 | 10.8% | ||||||||||||||||
Gross profit | 3,560 | 3,366 | 194 | 5.8% | 8,895 | 6,809 | 2,086 | 30.6% | ||||||||||||||||||||||
Adjusted gross profit(2) | 3,560 | 3,473 | 87 | 2.5% | 8,903 | 7,728 | 1,175 | 15.2% | ||||||||||||||||||||||
Adjusted gross profit %(2) | 26.0% | 26.0% | 26.3% | 25.3% | ||||||||||||||||||||||||||
Adjusted EBITDA(2) | $ | 976 | $ | 954 | 22 | 2.3% | $ | 2,529 | $ | 2,143 | 386 | 18.0% | ||||||||||||||||||
Adjusted EBITDA margin(2) | 7.1 % | 7.1% | 7.5% | 7.0 % | ||||||||||||||||||||||||||
Depreciation and amortization | $ | 470 | $ | 496 | (26) | (5.2)% | $ | 1,198 | $ | 1,065 | 133 | 12.5% | ||||||||||||||||||
2015 | 2014(3) | 2015 | 2014(3) | ||||||||||||
For the periods ended October 10, 2015 and October 4, 2014 | (16 weeks) | (16 weeks) | (40 weeks) | (40 weeks) | |||||||||||
Food retail same-store sales growth | 1.3% | 2.6% | 1.7% | 1.9% | |||||||||||
Drug retail same-store sales growth | 4.9% | 2.5% | 4.0% | 2.1% | |||||||||||
Same-store pharmacy sales growth | 3.5% | 3.5% | 3.6% | 2.3% | |||||||||||
Same-store front store sales growth | 6.2% | 1.6% | 4.4% | 2.0% | |||||||||||
Sales Retail segment sales were $13,715 millionin the third quarter of 2015, an increase of $340 million compared to the third quarter of 2014. Food retail (Loblaw) sales of $10,178 million were higher by $190 million, or 1.9%, compared to the third quarter of 2014. Drug retail (Shoppers Drug Mart) sales of $3,537 million were higher by $150 million, or 4.4%. The increase in Retail segment sales was primarily due to the following factors:
Adjusted Gross Profit(2)Adjusted gross profit(2) of $3,560 million was $87 million higher compared to the third quarter of 2014.Adjusted gross profit percentage(2) was flat compared to the third quarter of 2014 but included a 30 basis point negative impact from the above noted modifications to certain franchise fee arrangements. After excluding this negative impact, adjusted gross profit percentage(2) was 26.3% compared to 26.0% in the third quarter of 2014. The increase of 30 basis points was driven by an increase in Food retail adjusted gross profit percentage(2) compared to the third quarter of 2014, partially offset by a decrease in the Drug retail adjusted gross profit percentage(2) compared to the third quarter of 2014. The key drivers of the increase were:
Adjusted EBITDA(2) Adjusted EBITDA(2) of $976 million was $22 million higher compared to the third quarter of 2014, driven by the increase in adjusted gross profit(2) described above, partially offset by an increase in SG&A of $65 million. As a percentage of sales, the increase in SG&A was positively impacted by the modification to certain franchise fee arrangements, which was fully offset in gross profit above. Excluding this impact, SG&A increased by $108 million, an increase of 30 basis points over 2014. The increase in SG&A included the impact of the following:
Depreciation and Amortization Depreciation and amortization was $470 million in the third quarter of 2015, a decrease of $26 million compared to the third quarter of 2014, and included $164 million (2014 - $168 million) in amortization of intangible assets related to the acquisition of Shoppers Drug Mart. Excluding this amount, depreciation and amortization decreased by $22 million driven by:
Other Retail Business Matters
Consolidation of Franchises In 2015, the Company implemented a new, simplified franchise agreement ("Franchise Agreement") for its franchised Food retail stores. For financial reporting purposes, the franchise stores subject to the Franchise Agreement were consolidated. All new franchises will be subject to the Franchise Agreement. Existing franchises will be converted to the Franchise Agreement as the existing agreements expire. As at October 10, 2015, 43 franchises were consolidated and the year-to-date impact was incremental revenue of $28 million, a decrease to EBITDA(2) of $8 million and an increase in depreciation and amortization of $2 million.
Closure of Certain Unprofitable Retail Locations As announced in the 2015 Second Quarter Report to Shareholders, the Company finalized a plan that will result in the closure of approximately 52 unprofitable retail locations across a range of banners and formats. The Company expects that the closures will be completed by the end of the second quarter of 2016. On an annualized basis, the closures will decrease sales by approximately $300 million but will result in a favourable impact of approximately $30 million to EBITDA(2) and $5 million to depreciation and amortization.
The restructuring and other related costs associated with the plan are expected to total approximately $140 million. Of this amount, a charge of $86 million was recorded in the third quarter of 2015 and $131 million year-to-date. The year-to-date amount included $92 million for severance and lease termination costs and $39 million for asset impairments associated with these retail locations. The Company expects approximately $9 million to be recognized as stores close.
As at the end of the third quarter of 2015, 13 retail locations had been closed.
Labour Agreements Over the past five years, the Company has been transitioning stores to more cost effective and efficient operating terms under collective agreements ("Labour Agreements"). The Company is committed to completing these Labour Agreements and expects to finalize the majority of the remaining stores in the fourth quarter of 2015. The Company anticipates it will incur a charge of approximately $60 million in SG&A related to the completion of these Labour Agreements in the fourth quarter of 2015, which will be excluded in calculating adjusted net earnings available to common shareholders of the Company(2).
Financial Services Segment(4)
For the periods ended October 10, 2015 | |||||||||||||||||||||||||||||||
and October 4, 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||||
(millions of Canadian dollars except | |||||||||||||||||||||||||||||||
where otherwise indicated) | (16 weeks) | (16 weeks) | $ Change | % Change | (40 weeks) | (40 weeks) | $ Change | % Change | |||||||||||||||||||||||
Revenue | $ | 211 | $ | 207 | $ | 4 | 1.9 % | $ | 609 | $ | 579 | $ | 30 | 5.2% | |||||||||||||||||
Adjusted EBITDA(2) | 39 | 42 | (3) | (7.1)% | 122 | 120 | 2 | 1.7% | |||||||||||||||||||||||
Earnings before income taxes | 23 | 27 | (4) | (14.8)% | 73 | 76 | (3) | (3.9)% | |||||||||||||||||||||||
As at | As at | ||||||||||||
(millions of Canadian dollars except where otherwise indicated) | October 10, 2015 | October 4, 2014 | $ Change | % Change | |||||||||
Average quarterly net credit card receivables | $ | 2,604 | $ | 2,512 | $ | 92 | 3.7% | ||||||
Credit card receivables | 2,663 | 2,549 | 114 | 4.5% | |||||||||
Allowance for credit card receivables | 51 | 51 | — | —% | |||||||||
Annualized yield on average quarterly gross credit card receivables | 13.6% | 13.8% | |||||||||||
Annualized credit loss rate on average quarterly gross credit card receivables | 4.4% | 4.4% | |||||||||||
Earnings before income taxes Earnings before income taxes were $23 million in the third quarter of 2015, a decrease of $4 million compared to the third quarter of 2014. The decrease was primarily driven by higher interest income attributable to growth in credit card receivables, offset by higher operating costs resulting from an increase in the active customer base and higher interest expenses to fund the growth in credit card receivables.
Credit Card Receivables As at October 10, 2015, credit card receivables were $2,663 million, an increase of $114 million compared to October 4, 2014. This increase was primarily driven by a growth in the active customer base as a result of continued investments in customer acquisitions and marketing initiatives, partially offset by higher customer payment rates. As at October 10, 2015, the allowance for credit card receivables was $51 million, flat compared to October 4, 2014.
Choice Properties Segment(4)
For the periods ended October 10, 2015 | |||||||||||||||||||||||||||||
and October 4, 2014 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
(millions of Canadian dollars except | |||||||||||||||||||||||||||||
where otherwise indicated) | (16 weeks) | (16 weeks) | $ Change | % Change | (40 weeks) | (40 weeks) | $ Change | % Change | |||||||||||||||||||||
Revenue | $ | 187 | $ | 171 | $ | 16 | 9.4% | $ | 552 | $ | 508 | $ | 44 | 8.7% | |||||||||||||||
Adjusted EBITDA(2) | 136 | 107 | 29 | 27.1% | 378 | 348 | 30 | 8.6% | |||||||||||||||||||||
Net interest expense and other financing charges | 308 | (18) | 326 | 1,811.1% | 572 | 232 | 340 | 146.6% | |||||||||||||||||||||
Adjusted funds from operations(2) | 79 | 73 | 6 | 8.2% | 231 | 211 | 20 | 9.5% | |||||||||||||||||||||
Adjusted EBITDA(2) Adjusted EBITDA(2) was $136 million in the third quarter of 2015, an increase of $29 million compared to the third quarter of 2014, primarily driven by contributions from properties acquired subsequent to the third quarter of 2014, an increase in base rent from existing properties and a favourable fair value adjustment on investment properties.
Net Interest Expense and Other Financing Charges Net interest expense and other financing charges were $308 million in the third quarter of 2015, an increase of $326 million compared to the third quarter of 2014. The increase was primarily driven by the fair value adjustment on Class B Limited Partnership units.
Adjusted Funds from Operations(2) Adjusted funds from operations(2) were $79 millionin the third quarter of 2015, an increase of $6 million compared to the third quarter of 2014, primarily driven by:
Other Matters In the third quarter of 2015, Choice Properties acquired two properties from the Company for a purchase price of approximately $18 million, excluding acquisition costs, for consideration of $15 million in cash and issuance of 280,155 Class B Limited Partnership units.
Subsequent to the end of the third quarter of 2015, Choice Properties announced an increase in its annual distribution per unit of 3.1% to $0.67 per unit, effective for unitholders of record on January 29, 2016 and filed a Short Form Base Shelf Prospectus allowing for the issuance of up to $2,000 million of Units and debt securities, or any combination thereof over a 25-month period.
DECLARATION OF DIVIDENDS
Subsequent to the end of the third quarter of 2015, the Board of Directors declared a quarterly dividend on Common Shares and Second Preferred Shares, Series B.
Common Shares |
$0.250 per common share, payable on December 30, 2015 to shareholders of record on December 15, 2015 |
||||
Second Preferred Shares, Series B |
$0.33125 per share, payable on December 31, 2015 to shareholders of record on December 15, 2015 |
OUTLOOK(1)
Loblaw's strategic framework is focused on delivering the best in food, best in health and beauty, operational excellence and growth. This strategic framework is supported by a financial strategy of maintaining a stable trading environment that targets positive same-store sales and stable gross margin; surfacing efficiencies; delivering synergies as a result of its acquisition of Shoppers Drug Mart; and deleveraging the balance sheet. Consistent with its previous outlook, on a full year comparative basis reflecting 2014 financial results for Loblaw and Shoppers Drug Mart(i), in 2015 the Company expects to:
The Company's expectations continue to include the following:
(i) | Includes Shoppers Drug Mart's financial results for the first quarter of 2014 and excludes the impact of the 53rd week of $71 million in adjusted EBITDA(2) and adjusted operating income(2). |
NON-GAAP FINANCIAL MEASURES
The Company uses the following non-GAAP financial measures: Retail segment adjusted gross profit, Retail segment adjusted gross profit percentage, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net interest expense and other financing charges, adjusted income taxes, adjusted income tax rate, adjusted net earnings, adjusted basic net earnings per common share, adjusted debt and with respect to Choice Properties: adjusted funds from operations. The Company believes these non-GAAP financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Company for the reasons outlined below.
Management uses these and other non-GAAP financial measures to exclude the impact of certain expenses and income that must be recognized under GAAP when analyzing consolidated and segment underlying operating performance, as the excluded items are not necessarily reflective of the Company's underlying operating performance and make comparisons of underlying financial performance between periods difficult. The Company excludes additional items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring.
These measures do not have a standardized meaning prescribed by GAAP and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to other financial measures determined in accordance with GAAP.
For details on the nature of items excluded in the calculation of any of the non-GAAP financial measures detailed below see the "Non-GAAP Financial Measures" section of the Company's Third Quarter 2015 Report to Shareholders.
Retail Segment Adjusted Gross Profit and Retail Segment Adjusted Gross Profit Percentage Retail segment adjusted gross profit percentage is calculated as adjusted Retail segment gross profit divided by Retail segment sales. The Company believes that Retail segment adjusted gross profit is useful in assessing the Retail segment's underlying operating performance and in making decisions regarding the ongoing operations of the business.
For the periods ended October 10, 2015 and October 4, 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||
(millions of Canadian dollars) | (16 weeks) | (16 weeks) | (40 weeks) | (40 weeks) | ||||||||||||
Retail segment gross profit | $ | 3,560 | $ | 3,366 | $ | 8,895 | $ | 6,809 | ||||||||
Add impact of the following: | ||||||||||||||||
Charge related to apparel inventory | — | — | 8 | — | ||||||||||||
Recognition of fair value increment on inventory sold | — | 107 | — | 729 | ||||||||||||
Charge related to inventory measurement and other conversion differences | — | — | — | 190 | ||||||||||||
Retail segment adjusted gross profit | $ | 3,560 | $ | 3,473 | $ | 8,903 | $ | 7,728 | ||||||||
EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin The following tables reconcile earnings (loss) before income taxes, net interest expense and other financing charges and depreciation and amortization ("EBITDA"), adjusted EBITDA and adjusted operating income to operating income, which is reconciled to GAAP net earnings measures reported in the condensed consolidated statements of earnings for the periods ended October 10, 2015 and October 4, 2014. The Company believes that adjusted EBITDA is useful in assessing the performance of its ongoing operations and its ability to generate cash flows to fund its cash requirements, including the Company's capital investments program.
Adjusted EBITDA margin is calculated as adjusted EBITDA divided by revenue.
2015 | 2014 | |||||||||||||||||||||||||||||||||||||||||||
(16 weeks) | (16 weeks) | |||||||||||||||||||||||||||||||||||||||||||
(millions of Canadian dollars) | Retail |
Financial Services(4) |
Choice Properties(4) |
Consolidation and Eliminations |
Consolidated | Retail |
Financial Services(4) |
Choice Properties(4) |
Consolidation and Eliminations |
Consolidated | ||||||||||||||||||||||||||||||||||
Net earnings attributable to | ||||||||||||||||||||||||||||||||||||||||||||
shareholders of the Company | $ | 170 | $ | 142 | ||||||||||||||||||||||||||||||||||||||||
Add (deduct) impact of the following: | ||||||||||||||||||||||||||||||||||||||||||||
Non-Controlling Interests | (6) | — | ||||||||||||||||||||||||||||||||||||||||||
Net interest expense and other | ||||||||||||||||||||||||||||||||||||||||||||
financing charges | 205 | 150 | ||||||||||||||||||||||||||||||||||||||||||
Income taxes | 89 | 43 | ||||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 419 | $ | 37 | $ | 135 | $ | (133) | $ | 458 | $ | 294 | $ | 41 | $ | 105 | $ | (105) | $ | 335 | ||||||||||||||||||||||||
Depreciation and amortization | 470 | 2 | 1 | 4 | 477 | 496 | 1 | — | 3 | 500 | ||||||||||||||||||||||||||||||||||
EBITDA | $ | 889 | $ | 39 | $ | 136 | $ | (129) | $ | 935 | $ | 790 | $ | 42 | $ | 105 | $ | (102) | $ | 835 | ||||||||||||||||||||||||
Operating income | $ | 419 | $ | 37 | $ | 135 | $ | (133) | $ | 458 | $ | 294 | $ | 41 | $ | 105 | $ | (105) | $ | 335 | ||||||||||||||||||||||||
Add (deduct) impact of the following: | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets | ||||||||||||||||||||||||||||||||||||||||||||
acquired with Shoppers | ||||||||||||||||||||||||||||||||||||||||||||
Drug Mart | 164 | — | — | — | 164 | 168 | — | — | — | 168 | ||||||||||||||||||||||||||||||||||
Restructuring and other related costs | 95 | — | — | — | 95 | 44 | — | 2 | — | 46 | ||||||||||||||||||||||||||||||||||
Fair value adjustment on fuel and | ||||||||||||||||||||||||||||||||||||||||||||
foreign currency contracts | (12) | — | — | — | (12) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fixed asset and other related | ||||||||||||||||||||||||||||||||||||||||||||
impairments, net of recoveries | 2 | — | — | — | 2 | 10 | — | — | — | 10 | ||||||||||||||||||||||||||||||||||
Pension annuities and buy-outs | 2 | — | — | — | 2 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Recognition of fair value increment | ||||||||||||||||||||||||||||||||||||||||||||
on inventory sold | — | — | — | — | — | 107 | — | — | — | 107 | ||||||||||||||||||||||||||||||||||
Fair value adjustment on Shoppers | ||||||||||||||||||||||||||||||||||||||||||||
Drug Mart's equity-based | ||||||||||||||||||||||||||||||||||||||||||||
compensation liability | — | — | — | — | — | 5 | — | — | — | 5 | ||||||||||||||||||||||||||||||||||
Shoppers Drug Mart acquisition- | ||||||||||||||||||||||||||||||||||||||||||||
related costs, net of impact from | ||||||||||||||||||||||||||||||||||||||||||||
divestitures | — | — | — | — | — | (2) | — | — | — | (2) | ||||||||||||||||||||||||||||||||||
Adjusted operating income | $ | 670 | $ | 37 | $ | 135 | $ | (133) | $ | 709 | $ | 626 | $ | 41 | $ | 107 | $ | (105) | $ | 669 | ||||||||||||||||||||||||
Depreciation and amortization | 470 | 2 | 1 | 4 | 477 | 496 | 1 | — | 3 | 500 | ||||||||||||||||||||||||||||||||||
Less: Amortization of intangible assets | ||||||||||||||||||||||||||||||||||||||||||||
acquired with Shoppers Drug | ||||||||||||||||||||||||||||||||||||||||||||
Mart | (164) | — | — | — | (164) | (168) | — | — | — | (168) | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 976 | $ | 39 | $ | 136 | $ | (129) | $ | 1,022 | $ | 954 | $ | 42 | $ | 107 | $ | (102) | $ | 1,001 | ||||||||||||||||||||||||
2015 | 2014(3) | |||||||||||||||||||||||||||||||||||||||||||
(40 weeks) | (40 weeks) | |||||||||||||||||||||||||||||||||||||||||||
(millions of Canadian dollars) | Retail |
Financial Services(4) |
Choice Properties(4) |
Consolidation and Eliminations |
Consolidated | Retail |
Financial Services(4) |
Choice Properties(4) |
Consolidation and Eliminations |
Consolidated | ||||||||||||||||||||||||||||||||||
Net earnings (loss) attributable to | ||||||||||||||||||||||||||||||||||||||||||||
shareholders of the Company | $ | 501 | $ | (194) | ||||||||||||||||||||||||||||||||||||||||
Add (deduct) impact of the following: | ||||||||||||||||||||||||||||||||||||||||||||
Non-Controlling Interests | (5) | — | ||||||||||||||||||||||||||||||||||||||||||
Net interest expense and other | ||||||||||||||||||||||||||||||||||||||||||||
financing charges | 503 | 415 | ||||||||||||||||||||||||||||||||||||||||||
Income taxes | 286 | (66) | ||||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 1,164 | $ | 115 | $ | 377 | $ | (371) | $ | 1,285 | $ | 38 | $ | 115 | $ | 345 | $ | (343) | $ | 155 | ||||||||||||||||||||||||
Depreciation and amortization | 1,198 | 7 | 1 | 10 | 1,216 | 1,065 | 5 | — | 9 | 1,079 | ||||||||||||||||||||||||||||||||||
EBITDA | $ | 2,362 | $ | 122 | $ | 378 | $ | (361) | $ | 2,501 | $ | 1,103 | $ | 120 | $ | 345 | $ | (334) | $ | 1,234 | ||||||||||||||||||||||||
Operating income | $ | 1,164 | $ | 115 | $ | 377 | $ | (371) | $ | 1,285 | $ | 38 | $ | 115 | $ | 345 | $ | (343) | $ | 155 | ||||||||||||||||||||||||
Add (deduct) impact of the following: | ||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets | ||||||||||||||||||||||||||||||||||||||||||||
acquired with Shoppers Drug | ||||||||||||||||||||||||||||||||||||||||||||
Mart | 412 | — | — | — | 412 | 293 | — | — | — | 293 | ||||||||||||||||||||||||||||||||||
Restructuring and other related | ||||||||||||||||||||||||||||||||||||||||||||
costs | 161 | — | — | — | 161 | 44 | — | 2 | — | 46 | ||||||||||||||||||||||||||||||||||
Fair value adjustment on fuel and | ||||||||||||||||||||||||||||||||||||||||||||
foreign currency contracts | (15) | — | — | — | (15) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Fixed asset and other related | ||||||||||||||||||||||||||||||||||||||||||||
impairments, net of recoveries | 9 | — | — | — | 9 | 14 | — | 1 | — | 15 | ||||||||||||||||||||||||||||||||||
Charge related to apparel inventory | 8 | — | — | — | 8 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Shoppers Drug Mart acquisition- | ||||||||||||||||||||||||||||||||||||||||||||
related costs, net of impact from | ||||||||||||||||||||||||||||||||||||||||||||
divestitures | 2 | — | — | — | 2 | 58 | — | — | — | 58 | ||||||||||||||||||||||||||||||||||
Pension annuities and buy-outs | 2 | — | — | — | 2 | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Recognition of fair value increment | ||||||||||||||||||||||||||||||||||||||||||||
on inventory sold | — | — | — | — | — | 729 | — | — | — | 729 | ||||||||||||||||||||||||||||||||||
Charge related to inventory | ||||||||||||||||||||||||||||||||||||||||||||
measurement and other | ||||||||||||||||||||||||||||||||||||||||||||
conversion differences | — | — | — | — | — | 190 | — | — | — | 190 | ||||||||||||||||||||||||||||||||||
Fair value adjustment on Shoppers | ||||||||||||||||||||||||||||||||||||||||||||
Drug Mart's equity-based | ||||||||||||||||||||||||||||||||||||||||||||
compensation liability | — | — | — | — | — | 5 | — | — | — | 5 | ||||||||||||||||||||||||||||||||||
Adjusted operating income | $ | 1,743 | $ | 115 | $ | 377 | $ | (371) | $ | 1,864 | $ | 1,371 | $ | 115 | $ | 348 | $ | (343) | $ | 1,491 | ||||||||||||||||||||||||
Depreciation and amortization | 1,198 | 7 | 1 | 10 | 1,216 | 1,065 | 5 | — | 9 | 1,079 | ||||||||||||||||||||||||||||||||||
Less: Amortization of intangible assets | ||||||||||||||||||||||||||||||||||||||||||||
acquired with Shoppers Drug | ||||||||||||||||||||||||||||||||||||||||||||
Mart | (412) | — | — | — | (412) | (293) | — | — | — | (293) | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $ | 2,529 | $ | 122 | $ | 378 | $ | (361) | $ | 2,668 | $ | 2,143 | $ | 120 | $ | 348 | $ | (334) | $ | 2,277 | ||||||||||||||||||||||||
Adjusted Net Interest Expense and Other Financing Charges The following table reconciles adjusted net interest expense and other financing charges to net interest expense and other financing charges in the condensed consolidated statements of earnings for the periods ended October 10, 2015 and October 4, 2014. The Company believes that adjusted net interest expense and other financing charges is useful in assessing the Company's underlying financial performance and in making decisions regarding the financial operations of the business.
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(millions of Canadian dollars) | (16 weeks) | (16 weeks) | (40 weeks) | (40 weeks) | |||||||||||||
Net interest expense and other financing charges | $ | 205 | $ | 150 | $ | 503 | $ | 415 | |||||||||
Add (deduct) impact of the following: | |||||||||||||||||
Fair value adjustment to the Trust Unit Liability | (49) | 23 | (74) | 3 | |||||||||||||
Accelerated amortization of deferred financing costs | (4) | (4) | (15) | (18) | |||||||||||||
Shoppers Drug Mart acquisition-related costs, net of | |||||||||||||||||
impact from divestitures | — | — | — | (15) | |||||||||||||
Adjusted net interest expense and other financing charges | $ | 152 | $ | 169 | $ | 414 | $ | 385 | |||||||||
Adjusted Income Taxes and Adjusted Income Tax Rate The Company believes adjusted income taxes is useful in assessing the underlying operating performance and in making decisions regarding the ongoing operations of its business.
2015 | 2014 | 2015 | 2014 | ||||||||||||||||
(millions of Canadian dollars) | (16 weeks) | (16 weeks) | (40 weeks) | (40 weeks) | |||||||||||||||
Adjusted operating income(i) | $ | 709 | $ | 669 | $ | 1,864 | $ | 1,491 | |||||||||||
Adjusted net interest expense and other financing charges(i) | 152 | 169 | 414 | 385 | |||||||||||||||
Adjusted earnings before taxes | $ | 557 | $ | 500 | $ | 1,450 | $ | 1,106 | |||||||||||
Income taxes | $ | 89 | $ | 43 | $ | 286 | $ | (66) | |||||||||||
Add (deduct) impact of the following: | |||||||||||||||||||
Tax impact of items included in adjusted earnings before taxes(ii) | 62 | 86 | 144 | 351 | |||||||||||||||
Provincial statutory corporate income tax rate change | — | — | (38) | — | |||||||||||||||
Adjusted income taxes | $ | 151 | $ | 129 | $ | 392 | $ | 285 | |||||||||||
Effective tax rate | 35.2% | 23.2% | 36.6% | 25.4% | |||||||||||||||
Adjusted income tax rate | 27.1% | 25.8% | 27.0% | 25.8% | |||||||||||||||
(i) | See reconciliations of adjusted operating income and adjusted net interest expense and other financing charges above. |
(ii) | See the EBITDA, adjusted EBITDA and adjusted EBITDA margin table and the adjusted net interest expense and other financing charges table above for a complete list of items included in adjusted earnings before taxes. |
Adjusted income tax rate is calculated as adjusted income taxes divided by the sum of adjusted operating income less adjusted net interest expense and other financing charges.
Adjusted Net Earnings and Adjusted Basic Net Earnings Per Common Share The Company believes adjusted net earnings and adjusted basic net earnings per common share are useful in assessing the Company's underlying operating performance and in making decisions regarding the ongoing operations of its business.
2015 | 2014(3) | 2015 | 2014(3) | ||||||||||||
(millions of Canadian dollars) | (16 weeks) | (16 weeks) | (40 weeks) | (40 weeks) | |||||||||||
Adjusted net earnings attributable to shareholders of the Company | $ | 412 | $ | 371 | $ | 1,063 | $ | 821 | |||||||
Less: Prescribed dividends on preferred shares in share capital | (4) | — | (4) | — | |||||||||||
Adjusted net earnings available to common shareholders of the Company | $ | 408 | $ | 371 | $ | 1,059 | $ | 821 | |||||||
The following table reconciles adjusted net earnings available to common shareholders of the Company and adjusted basic net earnings per common share to GAAP net earnings available to common shareholders of the Company and basic net earnings per common share reported for the periods ended October 10, 2015 and October 4, 2014:
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||||||||||
(16 weeks) | (16 weeks) | (40 weeks) | (40 weeks) | ||||||||||||||||||||||||||||||
(millions of Canadian dollars/Canadian dollars) |
Net Earnings Available to Common Shareholders of the Company |
Basic Net Earnings Per Common Share |
Net Earnings Available to Common Shareholders of the Company |
Basic Net Earnings Per Common Share |
Net Earnings Available to Common Shareholders of the Company |
Basic Net Earnings Per Common Share |
Net Earnings (Loss) Available to Common Shareholders of the Company |
Basic Net Earnings (Loss) Per Common Share |
|||||||||||||||||||||||||
$ | 166 | $ | 0.40 | $ | 142 | $ | 0.34 | $ | 497 | $ | 1.21 | $ | (194) | $ | (0.52) | ||||||||||||||||||
Add (deduct) impact of the following: | |||||||||||||||||||||||||||||||||
Amortization of intangible assets acquired with | |||||||||||||||||||||||||||||||||
Shoppers Drug Mart | 120 | 0.30 | 124 | 0.31 | 302 | 0.73 | 216 | 0.58 | |||||||||||||||||||||||||
Restructuring and other related costs | 76 | 0.18 | 34 | 0.08 | 132 | 0.32 | 34 | 0.09 | |||||||||||||||||||||||||
Fair value adjustment to the Trust Unit | |||||||||||||||||||||||||||||||||
Liability(i) | 49 | 0.12 | (23) | (0.06) | 74 | 0.18 | (3) | (0.01) | |||||||||||||||||||||||||
Provincial statutory corporate income tax rate | |||||||||||||||||||||||||||||||||
change | — | — | — | — | 38 | 0.09 | — | — | |||||||||||||||||||||||||
Accelerated amortization of deferred financing | |||||||||||||||||||||||||||||||||
costs | 3 | 0.01 | 3 | 0.01 | 11 | 0.03 | 13 | 0.04 | |||||||||||||||||||||||||
Fair value adjustment on fuel and foreign | |||||||||||||||||||||||||||||||||
currency contracts | (9) | (0.02) | — | — | (11) | (0.03) | — | — | |||||||||||||||||||||||||
Fixed asset and other related impairments, net | |||||||||||||||||||||||||||||||||
of recoveries | 2 | — | 8 | 0.02 | 7 | 0.02 | 12 | 0.03 | |||||||||||||||||||||||||
Charge related to apparel inventory | — | — | — | — | 6 | 0.02 | — | — | |||||||||||||||||||||||||
Shoppers Drug Mart acquisition-related costs, | |||||||||||||||||||||||||||||||||
net of impact from divestitures | — | — | — | — | 2 | — | 64 | 0.17 | |||||||||||||||||||||||||
Pension annuities and buy-outs | 1 | — | — | — | 1 | — | — | — | |||||||||||||||||||||||||
Recognition of fair value increment on | |||||||||||||||||||||||||||||||||
inventory sold | — | — | 79 | 0.19 | — | — | 536 | 1.45 | |||||||||||||||||||||||||
Charge related to inventory measurement and | |||||||||||||||||||||||||||||||||
other conversion differences | — | — | — | — | — | — | 139 | 0.38 | |||||||||||||||||||||||||
Fair value adjustment on Shoppers Drug | |||||||||||||||||||||||||||||||||
Mart's equity-based compensation liability | — | — | 4 | 0.01 | — | — | 4 | 0.01 | |||||||||||||||||||||||||
Adjusted | $ | 408 | $ | 0.99 | $ | 371 | $ | 0.90 | $ | 1,059 | $ | 2.57 | $ | 821 | $ | 2.22 | |||||||||||||||||
(i) | Gains or losses related to the fair value adjustment to the Trust Unit Liability are not subject to tax. |
Adjusted Debt The following table reconciles adjusted debt, used in the adjusted debt to rolling year adjusted EBITDA ratio, to GAAP measures reported as at the periods indicated. The Company believes that adjusted debt is relevant in assessing the amount of financial leverage employed. In the table below, the Company has also presented adjusted debt as at March 28, 2014, the date of the acquisition of Shoppers Drug Mart, as this is the baseline for the Company's debt reduction targets.
As at | As at | As at | As at | |||||||||||||
(millions of Canadian dollars) | October 10, 2015 | October 4, 2014 | January 3, 2015 | March 28, 2014 | ||||||||||||
Bank indebtedness | $ | 243 | $ | 323 | $ | 162 | $ | 295 | ||||||||
Short term debt | 580 | 605 | 605 | 605 | ||||||||||||
Long term debt due within one year | 1,344 | 71 | 420 | 902 | ||||||||||||
Long term debt | 9,760 | 11,549 | 11,042 | 11,262 | ||||||||||||
Trust Unit Liability | 810 | 697 | 722 | 703 | ||||||||||||
Capital securities | — | 224 | 225 | 224 | ||||||||||||
Certain other liabilities | 31 | 49 | 28 | 39 | ||||||||||||
Total debt | $ | 12,768 | $ | 13,518 | $ | 13,204 | $ | 14,030 | ||||||||
Less: | ||||||||||||||||
Independent Securitization Trusts | $ | 1,580 | $ | 1,355 | $ | 1,355 | $ | 1,355 | ||||||||
Independent Funding Trusts | 506 | 487 | 498 | 469 | ||||||||||||
Trust Unit Liability | 810 | 697 | 722 | 703 | ||||||||||||
Guaranteed Investment Certificates | 684 | 563 | 634 | 443 | ||||||||||||
Adjusted debt | $ | 9,188 | $ | 10,416 | $ | 9,995 | $ | 11,060 | ||||||||
Adjusted debt to rolling year adjusted EBITDA is calculated as adjusted debt divided by cumulative adjusted EBITDA for the latest four quarters.
Choice Properties' Adjusted Funds from Operations(4)The following table reconciles Choice Properties' adjusted funds from operations to GAAP measures for the periods ended October 10, 2015 and October 4, 2014. The Company believes adjusted funds from operations is useful in measuring economic performance and is indicative of Choice Properties' ability to pay distributions.
2015 | 2014 | 2015 | 2014 | |||||||||||||
(millions of Canadian dollars) | (16 weeks) | (16 weeks) | (40 weeks) | (40 weeks) | ||||||||||||
Net (loss) income | $ | (174) | $ | 123 | $ | (196) | $ | 113 | ||||||||
Fair value adjustment on Class B Limited Partnership units | 221 | (100) | 315 | (63) | ||||||||||||
Fair value adjustment on investment properties | (1) | 16 | 16 | 16 | ||||||||||||
Fair value adjustments on unit-based compensation | 1 | (1) | 1 | (1) | ||||||||||||
Distributions on Class B Limited Partnership units | 51 | 48 | 151 | 141 | ||||||||||||
Amortization of tenant improvement allowances | — | — | — | 1 | ||||||||||||
Internal expenses for leasing | — | — | 1 | — | ||||||||||||
Funds from Operations | $ | 98 | $ | 86 | $ | 288 | $ | 207 | ||||||||
Restructuring | $ | — | $ | 2 | $ | — | $ | 2 | ||||||||
Straight-line rental revenue | (9) | (9) | (27) | (26) | ||||||||||||
Amortization of finance charges | — | (1) | (1) | 50 | ||||||||||||
Unit-based compensation expense | 1 | 1 | 2 | 2 | ||||||||||||
Sustaining property and leasing capital expenditures, normalized(i) | (11) | (6) | (31) | (24) | ||||||||||||
Adjusted Funds from Operations | $ | 79 | $ | 73 | $ | 231 | $ | 211 | ||||||||
(i) | Seasonality impacts the timing of capital expenditures. The adjusted funds from operations calculation has been adjusted for this factor to make the quarters more comparable. |
SEGMENT INFORMATION
The Company has three reportable operating segments with all material operations carried out in Canada:
The Company's chief operating decision maker evaluates segment performance on the basis of adjusted EBITDA(2) and adjusted operating income(2), as reported to internal management, on a periodic basis.
Information for each reportable operating segment is included below:
October 10, 2015 | October 4, 2014 | |||||||||||||||||||||||||||||||||||||
(16 weeks) | (16 weeks) | |||||||||||||||||||||||||||||||||||||
(millions of Canadian dollars) | Retail |
Financial Services(4) |
Choice Properties(4) |
Consolidation and Eliminations(i) |
Total | Retail |
Financial Services(4) |
Choice Properties(4) |
Consolidation and Eliminations(i) |
Total | ||||||||||||||||||||||||||||
Revenue(ii) | $ | 13,715 | $ | 211 | $ | 187 | $ | (167) | $ | 13,946 | $ | 13,375 | $ | 207 | $ | 171 | $ | (154) | $ | 13,599 | ||||||||||||||||||
EBITDA(iii) | $ | 889 | $ | 39 | $ | 136 | $ | (129) | $ | 935 | $ | 790 | $ | 42 | $ | 105 | $ | (102) | $ | 835 | ||||||||||||||||||
Adjusting Items(iii) | 87 | — | — | — | 87 | 164 | — | 2 | — | 166 | ||||||||||||||||||||||||||||
Adjusted EBITDA(iii) | $ | 976 | $ | 39 | $ | 136 | $ | (129) | $ | 1,022 | $ | 954 | $ | 42 | $ | 107 | $ | (102) | $ | 1,001 | ||||||||||||||||||
Depreciation and Amortization(iv) | 306 | 2 | 1 | 4 | 313 | 328 | 1 | — | 3 | 332 | ||||||||||||||||||||||||||||
Adjusted Operating Income(iii) | $ | 670 | $ | 37 | $ | 135 | $ | (133) | $ | 709 | $ | 626 | $ | 41 | $ | 107 | $ | (105) | $ | 669 | ||||||||||||||||||
Net interest expense and other financing charges | $ | 108 | $ | 14 | $ | 308 | $ | (225) | $ | 205 | $ | 119 | $ | 14 | $ | (18) | $ | 35 | $ | 150 | ||||||||||||||||||
(i) | Consolidation and Eliminations includes the following items: |
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(ii) | Included in Financial Services revenue is $93 million (2014 - $91 million) of interest income. |
(iii) | Certain items are excluded from EBITDA(2) to derive adjusted EBITDA(2). Adjusted EBITDA(2) is used internally by management when analyzing segment underlying performance. |
(iv) | Depreciation and amortization for the calculation of adjusted EBITDA(2) excludes $164 million (2014 - $168 million) of amortization of intangible assets acquired with Shoppers Drug Mart. |
October 10, 2015 | October 4, 2014(3) | |||||||||||||||||||||||||||||||||||||
(40 weeks) | (40 weeks) | |||||||||||||||||||||||||||||||||||||
(millions of Canadian dollars) | Retail |
Financial Services(4) |
Choice Properties(4) |
Consolidation and Eliminations(i) |
Total | Retail |
Financial Services(4) |
Choice Properties(4) |
Consolidation and Eliminations(i) |
Total | ||||||||||||||||||||||||||||
Revenue(ii) | $ | 33,863 | $ | 609 | $ | 552 | $ | (495) | $ | 34,529 | $ | 30,567 | $ | 579 | $ | 508 | $ | (456) | $ | 31,198 | ||||||||||||||||||
EBITDA(iii) | $ | 2,362 | $ | 122 | $ | 378 | $ | (361) | $ | 2,501 | $ | 1,103 | $ | 120 | $ | 345 | $ | (334) | $ | 1,234 | ||||||||||||||||||
Adjusting Items(iii) | 167 | — | — | — | 167 | 1,040 | — | 3 | — | 1,043 | ||||||||||||||||||||||||||||
Adjusted EBITDA(iii) | $ | 2,529 | $ | 122 | $ | 378 | $ | (361) | $ | 2,668 | $ | 2,143 | $ | 120 | $ | 348 | $ | (334) | $ | 2,277 | ||||||||||||||||||
Depreciation and Amortization(iv) | 786 | 7 | 1 | 10 | 804 | 772 | 5 | — | 9 | 786 | ||||||||||||||||||||||||||||
Adjusted Operating Income(iii) | $ | 1,743 | $ | 115 | $ | 377 | $ | (371) | $ | 1,864 | $ | 1,371 | $ | 115 | $ | 348 | $ | (343) | $ | 1,491 | ||||||||||||||||||
Net interest expense and other financing charges | $ | 285 | $ | 42 | $ | 572 | $ | (396) | $ | 503 | $ | 286 | $ | 39 | $ | 232 | $ | (142) | $ | 415 | ||||||||||||||||||
(i) | Consolidation and Eliminations includes the following items: |
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(ii) | Included in Financial Services revenue is $274 million (2014 - $266 million) of interest income. |
(iii) | Certain items are excluded from EBITDA(2) to deriveadjusted EBITDA(2). Adjusted EBITDA(2) is used internally by management when analyzing segment underlying performance. |
(iv) | Depreciation and amortization for the calculation of adjusted EBITDA(2) excludes $412 million (2014 - $293 million) of amortization of intangible assets acquired with Shoppers Drug Mart. |
FORWARD-LOOKING STATEMENTS
This News Release for the Company contains forward-looking statements about the Company's objectives, plans, goals, aspirations, strategies, financial condition, results of operations, cash flows, performance, prospects, opportunities and legal and regulatory matters. Specific forward-looking statements in this News Release include, but are not limited to, statements with respect to the Company's anticipated future results, events and plans, synergies and other benefits associated with the acquisition of Shoppers Drug Mart, future liquidity and debt reduction targets, planned capital investments, and status and impact of IT systems implementation. These specific forward-looking statements are contained throughout this News Release including, without limitation, in the "Outlook" section of this News Release. Forward-looking statements are typically identified by words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "strive", "will", "may", "on track" and "should" and similar expressions, as they relate to the Company and its management.
Forward-looking statements reflect the Company's current estimates, beliefs and assumptions, which are based on management's perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. The Company's expectation of operating and financial performance in 2015 is based on certain assumptions including assumptions about anticipated cost savings, operating efficiencies and continued growth from current initiatives. The Company's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and as such, are subject to change. The Company can give no assurance that such estimates, beliefs and assumptions will prove to be correct.
Numerous risks and uncertainties could cause the Company's actual results to differ materially from those expressed, implied or projected in the forward-looking statements, including those described in Section 15 "Enterprise Risks and Risk Management" of the Management's Discussion and Analysis in the 2014 Annual Report - Financial Review ("2014 Annual Report") and Annual Information Form (for the year ended January 3, 2015). Such risks and uncertainties include:
This is not an exhaustive list of the factors that may affect the Company's forward-looking statements. Other risks and uncertainties not presently known to the Company or that the Company presently believes are not material could also cause actual results or events to differ materially from those expressed in its forward-looking statements. Additional risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time, including, without limitation, the section entitled "Risks" in the Company's Annual Information Form (for the year ended January 3, 2015). Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's expectations only as of the date of this News Release. Except as required by law, the Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
CORPORATE PROFILE
2014 Annual Report and 2015 Third Quarter Report to Shareholders
The Company's 2014 Annual Report and 2015 Third Quarter Report to Shareholders are available in the Investor Centre section of the Company's website at loblaw.ca and sedar.com.
Additional financial information has been filed electronically with various securities regulators in Canada through the System for Electronic Document Analysis and Retrieval (SEDAR) and with the Office of the Superintendent of Financial Institutions (OSFI) as the primary regulator for the Company's subsidiary, President's Choice Bank. The Company holds an analyst call shortly following the release of its quarterly results. These calls are archived in the Investor Centre section of the Company's website at loblaw.ca.
Conference Call and Webcast
Loblaw Companies Limited will host a conference call as well as an audio webcast on November 18, 2015 at 10:00 a.m. (ET).
To access via tele-conference please dial (416) 204-9702. The playback will be made available two hours after the event at (647) 436-0148, access code: 667786. To access via audio webcast, please visit loblaw.ca, go to Investor Centre and click on webcast. Pre-registration will be available.
Full details about the conference call and webcast are available on the Loblaw Companies Limited website at loblaw.ca.
News Release Endnotes | |
(1) |
This News Release contains forward-looking information. See "Forward-Looking Statements" section of this News Release for a discussion of material factors that could cause actual results to differ materially from the forecasts and projections herein and of the material factors and assumptions that were used when making these statements. This News Release should be read in conjunction with Loblaw Companies Limited's filings with securities regulators made from time to time, all of which can be found at sedar.com and at loblaw.ca. |
(2) | See "Non-GAAP Financial Measures" section of this News Release. |
(3) |
Certain 2014 figures have been restated to conform with the current year's presentation. See "Non-GAAP Financial Measures" section of this News Release and Note 2 "Significant Accounting Policies" and Note 4 "Business Acquisitions" in the Company's 2015 Third Quarter Report to Shareholders. |
(4) |
The results for the Financial Services and Choice Properties segments are for the periods ended September 30, 2015 and September 30, 2014, consistent with the segments' fiscal calendars. Adjustments to align Financial Services' and Choice Properties' results to October 10, 2015 and October 4, 2014 are included in Consolidation and Eliminations. See the "Non-GAAP Financial Measures" and the "Segment Information" sections of this News Release. |
SOURCE Loblaw Companies Limited
Investor Relations
Investor inquiries, contact:
Sophia Bisoukis
Investor Relations
(905) 861-2436
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Media inquiries, contact:
Kevin Groh
Vice President, Corporate Affairs and Communication
(905) 861-2437
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