BOUCHERVILLE, QUEBEC -- (Marketwired) -- 05/12/15

RONA inc. (TSX: RON)(TSX: RON.PR.A) ("RONA" or the "Corporation") announces the results for its operations for the 13-week period ended March 29, 2015. All figures in the press release are in Canadian dollars.

FIRST QUARTER HIGHLIGHTS

--  Increase of 5.0% in same-store sales in the Retail segment.
--  Increase of 22% in adjusted EBITDA compared to last year to $12.2
    million, and adjusted EBITDA margin up by 30 basis points.
--  Adjusted net loss down by $3.2 million to -$11.2 million, compared to
    -$14.4 million last year.
--  Improvement of 16.7% in adjusted net loss per share, or -$0.10, compared
    to -$0.12 in the first quarter of 2014.
--  Repurchase of more than 5.6 million common shares in the normal course
    of business during the first quarter, for a cash consideration of $77.4
    million.

"For the third consecutive quarter, RONA recorded solid growth in same-store sales throughout its retail network. The 5.0% increase reflects the success of our merchandising and banner repositioning strategies, as well as successful initiatives to meet the needs of our different customers and improve our competitive positioning. These elements, combined with strict management of operations and an early spring in Western Canada, resulted in a significant increase in sales in that region. Furthermore, Quebec's Reno-Depot stores continue to generate solid growth in same-store sales despite market conditions, which are still difficult in this market. Results in recent quarters confirm our strategy decisions and the RONA team is always looking for ways to profitably stimulate sales; we are leveraging our banners in order to optimize network efficiency so that we can meet the needs of our customers even better," said Robert Sawyer, President and Chief Executive Officer of RONA.

----------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS                                   First quarters ended
(in millions of dollars, except per-share
 data)                                        March 29, 2015 March 30, 2014
----------------------------------------------------------------------------
Revenues                                               778.8          764.3
EBITDA                                                  12.1            7.9
Adjusted EBITDA (1)                                     12.2           10.0
Net loss attributable to participating shares          (11.7)         (16.5)
  Per share - basic and diluted ($)                    (0.11)         (0.14)
Adjusted net loss attributable to
 participating shares (1)                              (11.2)         (14.4)
  Per share - basic and diluted ($)                    (0.10)         (0.12)
Weighted average number of shares outstanding
 (in thousands)                                      110,160        120,449
----------------------------------------------------------------------------
(1) See Non-IFRS performance measures below.

"The improved profitability reflects the stringent application of our business strategies. RONA improved its consolidated gross margin by 100 basis points over the same period last year. Furthermore, our solid financial position has allowed us to take opportunistic action with respect to our normal course issuer bid. The combined impact of these two factors contributes to value creation for our shareholders, as shown by the increase of more than 42.5% in return on capital from 4.0% to 5.7% over the last year," said Dominique Boies, Executive Vice President and Chief Financial Officer of RONA.

FIRST QUARTER 2015 RESULTS

Consolidated revenues rose to $778.8 million, up 1.9% over $764.3 million for the first quarter of 2014. This mainly reflects an increase of $29.3 million, or 5.9%, in the Retail segment, stemming from a solid performance in Western Canada and repositioning of the Reno-Depot banner in Quebec. These factors led to a 5.0% increase in same-store sales in RONA's Retail segment in the first quarter of 2015. In the Distribution segment, revenues were down 5.6%, primarily due to the net change in the number of dealer-owners and poor weather conditions in Quebec.

Adjusted EBITDA rose to $12.2 million, or 1.6% of revenues, compared to $10.0 million, or 1.3% of revenues in the first quarter of 2014. The increase reflects the positive impact of comparable sales growth in the Retail segment on the consolidated gross margin, which rose 100 basis points over the same period a year earlier. This element was partially offset by an increase in adjusted selling, general and administrative expense due to the rise in the cost of share units related to the long-term incentive plan, stemming from the increase in the RONA share price, as well as more aggressive marketing strategies. Adjusted EBITDA margin rose 110 basis points in the Retail segment and fell 120 basis points in the Distribution segment.

Adjusted net loss attributable to participating shares for the first quarter of 2015 amounted to ($11.2) million, or ($0.10) per share basic and diluted, compared to ($14.4) million, or ($0.12) per share basic and diluted, in the first quarter of 2014.

SOLID FINANCIAL SITUATION

As at March 29, 2015, RONA's financial situation remained healthy, with net debt of $402.3 million and $423.2 million available on its authorized credit facility of $700.0 million. The ratio of net debt to adjusted EBITDA for the past 12 months was 1.7x at March 29, 2015, compared to 1.6x at March 30, 2014. The ratio of net debt to total capital was 0.21x as at March 29, 2015, up from 0.16x as at March 30, 2014.

The increase in the ratios compared to a year earlier reflects the continued optimisation of our capital structure through the purchase of over 5.6 million common shares during the quarter for a cash consideration of $77.4 million under the normal course issuer bid established in November 2014. Since the start of the program, RONA has bought back 8.1 million common shares, or 88% of the total program, for a cash consideration of $109.7 million. RONA is authorized to purchase a maximum of 9.2 million common shares up to November 17, 2015.

DIVIDEND ON PREFERRED SHARES

At its meeting on May 11, 2015, RONA's Board of Directors declared a quarterly dividend of $0.3281 per share on cumulative 5-year rate reset Class A preferred shares, Series 6. The dividend will be paid on June 30, 2015 to shareholders of record on June 15, 2015.

ADDITIONAL INFORMATION

Management's Discussion and Analysis (MD&A), financial statements and related notes for the first quarter of 2015 can be found in the "Investor Relations" section of the Corporation's website at www.rona.ca and on the SEDAR website at www.sedar.com. The Corporation's Annual Information Form, along with other information about RONA, can also be found on the RONA and SEDAR websites.

CONFERENCE CALL WITH THE FINANCIAL COMMUNITY

On Tuesday, May 12, 2015, at 3:00 p.m. (EDT), RONA will hold a conference call for the financial community. To join the conference, please call 416-340-2217 or 1-866-696-5910. To listen to the call online, please go to: http://webcasts.pqm.net/client/rona/event/1371/en/.

A replay will be available from 7:00 p.m. on Tuesday, May 12, 2015 until May 19, 2015. It can be heard by dialing 905-694-9451 or 1-800-408-3053 and entering the password 3322001 on the telephone keypad.

NON-IFRS PERFORMANCE MEASURES

RONA presents certain performance measures which are not prescribed by International Financial Reporting Standards ("IFRS"). Management's view is that these measures are useful in the analysis of the Corporation's operational performance. These measures must not be considered separately or as a substitute for other performance measures calculated in compliance with IFRS, but rather as additional information.

EBITDA, as defined by the Corporation, represents operating profit before finance costs, income tax expense and depreciation, amortization and impairment of non-financial assets. This measure is widely used in financial circles to measure the profitability of operations.

Same-store sales is a metric used by management and is common throughout our industry. This metric identifies sales growth generated by the existing store network and is adjusted to reflect the effect of acquisitions, store closures and store openings.

The term "organic" is a metric used by management to illustrate the change in items on the consolidated statement of income that can be attributed to the existing store network, in both the distribution and retail segments. This metric excludes the impact of closed stores, acquisitions and new stores.

Management also uses the following non-IFRS performance measures: adjusted EBITDA; adjusted EBITDA margin; adjusted gross margin; adjusted selling, general and administrative expenses; adjusted depreciation, amortization and impairment of non-financial assets; adjusted finance costs; adjusted net income attributable to participating shares, adjusted basic and diluted net income per share attributable to owners of RONA Inc. and debt net of cash. These measures reflect the inclusion or exclusion of certain amounts that are viewed as not representative of the Corporation's sustainable financial performance. For more details on these measures, please see the MD&A for the first quarter of 2015.

FORWARD LOOKING STATEMENTS

This Press Release includes forward-looking statements that involve risks and uncertainties. All statements other than statements of historical facts included in this Press Release, including statements regarding the prospects of the industry and prospects, plans, financial position and business strategy of the Corporation may constitute forward-looking statements within the meaning of the Canadian securities legislation and regulations. Investors and others are cautioned that undue reliance should not be placed on any forward-looking statements.

For more information on the risks, uncertainties and assumptions that would cause the Corporation's actual results to differ from current expectations please refer to the Corporation's public filings available at sites www.rona.ca and www.sedar.ca.In particular, further details and descriptions of these and other factors are disclosed in the MD&A under the "Risks and uncertainties" section and in the "Risk factors" section of the Corporation's current Annual Information Form.

The forward-looking statements in this Press Release reflect the Corporation's expectations as at May 11, 2015, and are subject to change after this 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.

About RONA

RONA inc. is a major Canadian distributor and retailer of hardware, building materials and home renovation products. The Corporation operates a network of over 500 corporate, franchise and independent affiliate stores of complementary formats. With its 9 distribution centers, RONA serves its own network as well as many independent dealers operating under different banners, including Ace for which RONA owns the licensing rights and is the exclusive distributor in Canada. With the help of its nearly 24,000 employees, the Corporation generates annual consolidated sales of $4.1 billion. For more information, visit www.rona.ca.

Contacts:
Media
Valerie Gonzalo
Media Relations
514-626-6976
media@rona.ca

Financial Community
Andre Lavoie
Vice-President, Finance and Investor Relations
514-599-5900 x 8356
andre.lavoie@rona.ca