04:50:34 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Reitmans (Canada) Ltd
Symbol RET
Shares Issued 13,440,000
Close 2010-08-30 C$ 18.25
Market Cap C$ 245,280,000
Recent Sedar Documents

Reitmans (Canada) earns $39.87-million in Q2 2010

2010-08-31 09:43 ET - News Release

Mr. Jeremy Reitman reports

REITMANS (CANADA) LIMITED ANNOUNCES ITS RESULTS FOR THE SIX MONTHS ENDED JULY 31, 2010

Reitmans (Canada) Ltd.'s sales for the six months ended July 31, 2010, increased 3.3 per cent to $534,631,000, compared with $517,723,000 for the six months ended Aug. 1, 2009. Same-store sales increased by 1.6 per cent. Operating earnings before depreciation and amortization (EBITDA) for the period increased 37.9 per cent to $109,056,000, compared with $79,073,000 last year. The company's gross margin increased from 63.0 per cent to 68.8 per cent in the first six months of fiscal 2011, primarily due to the strengthening of the Canadian dollar vis-a-vis the U.S. dollar. The average rate for a U.S. dollar in the first six months of fiscal 2011 was $1.03 (Canadian), compared with $1.19 (Canadian) in the first six months of fiscal 2010. Net earnings increased 64.6 per cent to $56,346,000, or 83 cents diluted earnings per share, compared with $34,227,000, or 49 cents diluted earnings per share, last year.

Sales for the second quarter ended July 31, 2010, increased 3.3 per cent to $295,653,000, compared with $286,071,000 for the second quarter ended Aug. 1, 2009. Same-store sales for the comparable 13 weeks increased 1.5 per cent. EBITDA for the period increased 33.4 per cent to $71,496,000, compared with $53,613,000 last year. The company's gross margin increased from 63.0 per cent to 69.0 per cent in the second quarter ended July 31, 2010, primarily due to the strengthening of the Canadian dollar vis-a-vis the U.S. dollar. The average rate for a U.S. dollar in the second quarter ended July 31, 2010, was $1.04 (Canadian), compared with $1.13 (Canadian) in the second quarter ended Aug. 1, 2009. Net earnings increased 50.9 per cent to $39,875,000, or 59 cents diluted earnings per share, compared with $26,426,000, or 38 cents diluted earnings per share, for the same period last year.

Sales for the month of August (four weeks ended Aug. 28, 2010) decreased 2.1 per cent compared with August, 2009, with same-store sales decreasing 3.2 per cent.

During the second quarter, the company opened seven new stores comprising two Reitmans stores, one Smart Set store, one RW & Co. store, one Thyme Maternity store and two Cassis stores; 12 stores were closed. Accordingly, at July 31, 2010, there were 977 stores in operation, consisting of 366 Reitmans stores, 161 Smart Set stores, 67 RW & Co. stores, 76 Thyme Maternity stores, 21 Cassis stores, 165 Penningtons stores and 121 Addition Elle stores, compared with a total of 971 stores last year. During the last half of the year, the company plans to open 13 new stores, close six stores and remodel 12 stores.

At the board of directors meeting held on Aug. 31, 2010, a quarterly cash dividend (constituting eligible dividends) of 20 cents per share on all outstanding Class A non-voting and common shares of the company was declared. The dividend is payable on Oct. 28, 2010, to shareholders of record on Oct. 14, 2010.

                       STATEMENTS OF EARNINGS
              (in thousands, except per-share amounts)
                              
                           Six months ended      Three months ended
                        July 31,     Aug. 1,    July 31,     Aug. 1,
                           2010        2009        2010        2009

Sales                  $534,631    $517,723    $295,653    $286,071
Cost of goods sold
and selling,
general and
administrative
expenses                425,575     438,650     224,157     232,458
                      ---------   ---------   ---------   ---------
                        109,056      79,073      71,496      53,613
                      ---------   ---------   ---------   ---------
Depreciation and
amortization             29,912      30,159      15,132      15,513
                      ---------   ---------   ---------   ---------
Operating earnings
before the
undernoted               79,144      48,914      56,364      38,100
Investment income         1,644       1,407         834         680
Interest on
long-term debt              394         433         195         214
                      ---------   ---------   ---------   ---------
Earnings before
income taxes             80,394      49,888      57,003      38,566
Income taxes
Current                  25,798      16,714      18,103      11,868
Future                   (1,750)     (1,053)       (975)        272
                      ---------   ---------   ---------   ---------
                         24,048      15,661      17,128      12,140
                      ---------   ---------   ---------   ---------
Net earnings            $56,346     $34,227     $39,875     $26,426
                      ---------   ---------   ---------   ---------
Earnings per share
Basic                     $0.84       $0.49       $0.59       $0.38
Diluted                    0.83        0.49        0.59        0.38

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