TORONTO, July 31, 2015 /CNW/ - George Weston Limited (TSX: WN) ("GWL" or
the "Company") today announced its consolidated unaudited results for
the 12 weeks ended June 20, 2015.
GWL's 2015 Second Quarter Report to Shareholders has been filed with
SEDAR and is available at sedar.com and in the Investor Centre section
of the Company's website at weston.ca.
"We are pleased with George Weston Limited's performance in the second
quarter of 2015. We remain focused on delivering stable long term
growth and profitability and creating long term value for
shareholders", said W. Galen Weston, Executive Chairman, George Weston
Limited.
2015 SECOND QUARTER HIGHLIGHTS |
|
|
|
|
|
|
|
|
(unaudited)
($ millions except where otherwise indicated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12 Weeks Ended
|
|
|
|
|
|
24 Weeks Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the periods ended as indicated
|
|
| Jun. 20, 2015 |
|
|
|
Jun. 14, 2014
|
|
|
Change
|
|
|
| Jun. 20, 2015
|
Jun. 14, 2014
|
|
|
Change
|
Sales
|
| $ | 10,851 |
|
|
$
|
10,598
|
|
|
2.4%
|
|
| $ | 21,260 |
|
|
$
|
18,210
|
|
|
16.7%
|
EBITDA(1) |
| $ | 811 |
|
|
$
|
(42)
|
|
|
2,031.0%
|
|
| $ | 1,718 |
|
|
$
|
547
|
|
|
214.1%
|
Adjusted EBITDA(1) |
| $ | 913 |
|
|
$
|
859
|
|
|
6.3%
|
|
| $ | 1,763 |
|
|
$
|
1,407
|
|
|
25.3%
|
Adjusted EBITDA margin(1) |
|
| 8.4% |
|
|
|
8.1%
|
|
|
|
|
| 8.3% |
|
|
|
7.7%
|
|
|
|
Operating income (loss)
|
| $ | 423 |
|
|
$
|
(442)
|
|
|
195.7%
|
|
| $ | 942 |
|
|
$
|
(64)
|
|
|
1,571.9%
|
Adjusted operating income(1) |
| $ | 649 |
|
|
$
|
584
|
|
|
11.1%
|
|
| $ | 1,235 |
|
|
$
|
921
|
|
|
34.1%
|
Adjusted operating margin(1) |
|
| 6.0% |
|
|
|
5.5%
|
|
|
|
|
| 5.8% |
|
|
|
5.1%
|
|
|
|
Net earnings (loss) attributable to shareholders of the Company
|
| $ | 51 |
|
|
$
|
(208)
|
|
|
124.5%
|
|
| $ | 218 |
|
|
$
|
(88)
|
|
|
347.7%
|
Adjusted net earnings attributable to shareholders of the Company(1) |
| $ | 180 |
|
|
$
|
169
|
|
|
6.5%
|
|
| $ | 342 |
|
|
$
|
293
|
|
|
16.7%
|
Basic net earnings (loss) per common share ($)
|
| $ | 0.32 |
|
|
$
|
(1.71)
|
|
|
118.7%
|
|
| $ | 1.55 |
|
|
$
|
(0.85)
|
|
|
282.4%
|
Adjusted basic net earnings per common share(1) ($)
|
| $ | 1.33 |
|
|
$
|
1.25
|
|
|
6.4%
|
|
| $ | 2.52 |
|
|
$
|
2.14
|
|
|
17.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pavi Binning, President, George Weston Limited, commented that "In the
second quarter, Loblaw continued to execute against its strategic
framework, delivering solid results in both food and drug retail.
Weston Foods delivered sales growth and results in line with
expectations which reflected the impact of increased capital and
incremental investments in targeted areas".
CONSOLIDATED RESULTS OF OPERATIONS
GWL's second quarter 2015 adjusted basic net earnings per common share(1) increased to $1.33 from $1.25 in the same period in 2014. The increase
of $0.08 was primarily due to an improvement in operating performance
at Loblaw Companies Limited ("Loblaw"), partially offset by a decline
in operating performance at Weston Foods.
Basic net earnings per common share increased by $2.03 to $0.32 compared
to the same period in 2014, and included the favourable year-over-year
impact of the following significant prior year inventory items:
-
a charge incurred in the second quarter of 2014 of $622 million ($1.63
per common share) related to the fair value increment on the acquired
inventory sold associated with the acquisition of Shoppers Drug Mart
Corporation ("Shoppers Drug Mart"); and
-
a charge incurred in the second quarter of 2014 of $190 million ($0.49
per common share) related to inventory measurement and other conversion
differences associated with the implementation of a perpetual inventory
system at Loblaw.
For a complete list of items that impacted basic net earnings per common
share but that are excluded from adjusted basic net earnings per common
share(1), see the "Non-GAAP Financial Measures" section of this News Release.
REPORTABLE OPERATING SEGMENTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weston Foods Segment Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
12 Weeks Ended
|
|
|
|
|
24 Weeks Ended
|
|
|
|
($ millions except where otherwise indicated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the periods ended as indicated
|
|
| Jun. 20, 2015 |
|
|
|
Jun. 14, 2014
|
|
Change
|
|
|
| Jun. 20, 2015 |
|
|
Jun. 14, 2014
|
|
Change
|
|
Sales
|
| $ | 464 |
|
|
$
|
431
|
|
7.7%
|
|
|
$ | 968 |
|
|
$
|
880
|
|
10.0%
|
|
EBITDA(1) |
| $ | 57 |
|
|
$
|
61
|
|
(6.6)%
|
|
| $ | 116 |
|
|
$
|
138
|
|
(15.9)%
|
|
Adjusted EBITDA(1) |
| $ | 58 |
|
|
$
|
67
|
|
(13.4)%
|
|
| $ | 121 |
|
|
$
|
135
|
|
(10.4)%
|
|
Adjusted EBITDA margin(1) |
|
| 12.5%
|
|
|
|
15.5%
|
|
|
|
|
| 12.5%
|
|
|
|
15.3%
|
|
|
|
Operating income
|
| $ | 38 |
|
|
$
|
45
|
|
(15.6)%
|
|
| $ | 79 |
|
|
$
|
106
|
|
(25.5)%
|
|
Adjusted operating income(1) |
| $ | 39 |
|
|
$
|
51
|
|
(23.5)%
|
|
|
$ | 84 |
|
|
$
|
103
|
|
(18.4)%
|
|
Adjusted operating margin(1) |
|
| 8.4%
|
|
|
|
11.8%
|
|
|
|
|
| 8.7%
|
|
|
|
11.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Weston Foods sales in the second quarter of 2015 were $464 million, an
increase of $33 million, or 7.7% compared to the same period in 2014.
Foreign currency translation positively impacted sales by approximately
5.7%. Excluding the impact of foreign currency translation, sales
increased by 2.0% primarily due to the combined positive impact of
pricing and changes in sales mix, as volumes remained relatively flat.
Volumes in the second quarter of 2015 were negatively impacted by the
timing of Easter.
EBITDA(1) Weston Foods EBITDA(1) in the second quarter of 2015 was $57 million, a decrease of $4 million
compared to the same period in 2014, primarily due to a decline in
underlying operating performance, partially offset by the favourable
year-over-year impacts of restructuring and other charges and the fair
value adjustment of commodity derivatives.
Adjusted EBITDA(1) in the second quarter of 2015 was $58 million, a decrease of $9 million
compared to the same period in 2014. The decline in adjusted EBITDA(1) was primarily due to new plant costs, investments in capabilities and
innovation and higher input costs, partially offset by higher pricing.
Operating Income Weston Foods operating income in the second quarter of 2015 was
$38 million, a decrease of $7 million compared to the same period in
2014. Adjusted operating income(1) in the second quarter of 2015 was $39 million, a decrease of
$12 million compared to the same period in 2014.
In addition to the factors described above impacting EBITDA(1) and adjusted EBITDA(1), the decline in both operating income and adjusted operating income(1) was also driven by an increase in depreciation and amortization of
$3 million in the second quarter of 2015 due to investments in capital.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loblaw Segment Results |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
|
|
12 Weeks Ended
|
|
|
|
24 Weeks Ended
|
|
|
|
($ millions except where otherwise indicated)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the periods ended as indicated
|
|
| Jun. 20, 2015 |
|
|
|
Jun. 14, 2014
|
|
Change
|
|
| | Jun. 20, 2015 |
|
|
|
Jun. 14, 2014
|
|
|
Change
|
|
Sales
|
| $ | 10,535 |
|
|
$
|
10,307
|
|
2.2%
|
|
| $
| 20,583 |
|
|
$
|
17,599
|
|
|
17.0 %
|
|
Retail gross profit
|
| $ | 2,711 |
|
|
$
|
1,840
|
|
47.3%
|
|
| $
| 5,335 |
|
|
$
|
3,443
|
|
|
55.0 %
|
|
EBITDA(1) |
| $ | 780 |
|
|
$
|
(74)
|
|
1,154.1%
|
|
| $
| 1,562 |
|
|
$
|
395
|
|
|
295.4 %
|
|
Adjusted EBITDA(1) |
| $ | 855 |
|
|
$
|
792
|
|
8.0%
|
|
| $
| 1,642 |
|
|
$
|
1,272
|
|
|
29.1 %
|
|
Adjusted EBITDA margin(1) |
|
| 8.1% |
|
|
|
7.7%
|
|
|
|
|
| 8.0%
|
|
|
|
7.2%
|
|
|
|
|
Operating income (loss)
|
| $ | 411 |
|
|
$
|
(458)
|
|
189.7%
|
|
| $
| 823 |
|
|
$
|
(184)
|
|
|
547.3 %
|
|
Adjusted operating income(1) |
| $ | 610 |
|
|
$
|
533
|
|
14.4%
|
|
| $
| 1,151 |
|
|
$
|
818
|
|
|
40.7 %
|
|
Adjusted operating margin(1) |
|
| 5.8% |
|
|
|
5.2%
|
|
|
|
|
| 5.6%
|
|
|
|
4.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales Loblaw sales in the second quarter of 2015 were $10,535 million, an
increase of $228 million compared to the same period in 2014, primarily
driven by Retail sales. Retail sales increased by $221 million or 2.2%
compared to the same period in 2014 and included food retail (Loblaw)
sales of $7,629 million and drug retail (Shoppers Drug Mart) sales of
$2,689 million, representing increases of $141 million, or 1.9% and
$80 million, or 3.1%, respectively. Food retail same-store sales growth
was 2.1% (2014 - 1.8%) and the food retail average quarterly internal
food price index was higher than (2014 - in line with) the average
quarterly national food price inflation of 3.9% (2014 - 2.5%) as
measured by the Consumer Price Index for Food Purchased from Stores(5). Drug retail same-store sales growth was 3.8% (2014 - 2.5%).
In the last twelve months, there was no change to Retail net square
footage. Excluding the divestitures required pursuant to a Consent
Agreement with the Competition Bureau, net square footage increased by
0.3 million square feet, or 0.4%.
In 2014, Loblaw restructured its fee arrangements with the franchisees
of certain franchise banners. The revised arrangements are expected to
result in an annual reduction of Retail sales and gross profit of
approximately $150 million, with a corresponding decrease in selling,
general and administrative expenses ("SG&A"). In the second quarter of
2015, this restructuring had a negative impact of $33 million to Retail
sales and gross profit with an offsetting positive impact to SG&A.
Retail Gross Profit Loblaw Retail gross profit in the second quarter of 2015 was
$2,711 million, an increase of $871 million compared to the same period
in 2014. The increase in Retail gross profit was driven by higher
sales, as described above, an increase in Retail gross profit
percentage and included the favourable year-over-year net impact of the
following:
-
the prior year charge of $622 million related to the recognition of the
fair value increment on the acquired Shoppers Drug Mart inventory sold;
-
the prior year charge of $190 million related to inventory measurement
and other conversion differences associated with the implementation of
a perpetual inventory system at Loblaw; partially offset by
-
a charge of $8 million related to apparel inventory in the second
quarter of 2015.
Excluding the favourable year-over-year net impact of the items noted
above, Retail gross profit increased by $67 million to $2,719 million
compared to the same period in 2014, driven by higher sales and an
increase in Retail gross profit percentage of 10 basis points to 26.4%.
The increase in Retail gross profit percentage included a 30 basis
point negative impact from the restructuring of certain franchise fee
arrangements, as described above. After excluding this negative impact,
Retail gross profit percentage was 26.7% compared to 26.3% in 2014. The
increase was primarily driven by the achievement of operational
synergies.
EBITDA(1) Loblaw EBITDA(1) in the second quarter of 2015 was $780 million, an increase of
$854 million compared to the same period in 2014, primarily driven by
an improvement in underlying operating performance and the favourable
year-over-year impact of the prior year inventory items previously
described.
Loblaw adjusted EBITDA(1) in the second quarter of 2015 was $855 million, an increase of
$63 million compared to the same period in 2014, driven by an increase
in Retail gross profit (excluding the prior year inventory items
previously described), partially offset by an increase in Retail SG&A
which included the positive impact of the restructuring of certain
franchise fee arrangements. Excluding this positive impact, Retail SG&A
increased by $35 million compared to the same period in 2014 and SG&A
percentage was flat. The increase in SG&A was due to higher store and
store support costs, primarily driven by higher sales volumes and the
impact of franchise consolidation. These costs were partially offset by
lower charges related to the transition of certain food retail stores
to more cost effective and efficient operating terms under collective
agreements, efficiencies achieved in food retail supply chain,
administration and information technology ("IT"), and positive changes
in the value of Loblaw's investments in its franchise business.
Operating Income Loblaw operating income in the second quarter of 2015 was
$411 million, an increase of $869 million compared to the same period
in 2014. Loblaw adjusted operating income(1) in the second quarter of 2015 was $610 million, an increase of
$77 million compared to the same period in 2014.
In addition to the factors described above impacting EBITDA(1) and adjusted EBITDA(1), the increase in both operating income and adjusted operating income(1) in the second quarter of 2015 included a decrease in Retail
depreciation and amortization of $14 million. The decrease in Retail
depreciation and amortization was driven by the change in the estimated
useful life of certain IT systems, as disclosed in the first quarter of
2015, as well as lower IT and supply chain depreciation.
NET INTEREST EXPENSE AND OTHER FINANCING CHARGES
In the second quarter of 2015, net interest expense and other financing
charges decreased by $19 million to $140 million compared to the same
period in 2014. The decrease was primarily due to the favourable
year-over-year impacts of the fair value adjustment of the Trust Unit
Liability and the accelerated amortization of deferred financing
charges, partially offset by the unfavourable year-over-year impact of
the fair value adjustment of the forward sale agreement for 9.6 million
Loblaw common shares.
Adjusted net interest expense and other financing charges(1) were $140 million, an increase of $4 million compared to the same period
in 2014. The increase was primarily driven by higher interest on long
term debt, as a result of debt issuances by Choice Properties to third
parties and GWL's issuance of a $200 million medium term note, and the
timing of the distributions declared by Choice Properties Real Estate
Investment Trust ("Choice Properties") on its Trust Units relative to
the Company's reporting period. This increase was partially offset by a
reduction in interest on long term debt as a result of repayments on
Loblaw's unsecured term loan facility, which was obtained in connection
with the acquisition of Shoppers Drug Mart ("Acquisition Term Loan").
INCOME TAXES
In the second quarter of 2015, the government of Alberta announced an
increase to the provincial corporate income tax rate from 10% to 12%.
The increase was effective July 1, 2015, but was enacted on
June 19, 2015. As a result, the Company recorded a charge of
$45 million related to the re-measurement of deferred tax liabilities.
Income tax expense for the second quarter of 2015 was $129 million and
the effective tax rate was 45.6%. Income tax recovered for the second
quarter of 2014 was $145 million and the effective tax rate was 24.1%.
The increase in the effective tax rate was primarily attributable to
the increase in deferred tax expense as a result of the increase in the
Alberta statutory corporate income tax rate, as described above.
Adjusted income tax expense(1) for the second quarter of 2015 was $138 million and the adjusted income
tax rate(1) was 27.1%. Adjusted income tax expense(1) for the second quarter of 2014 was $117 million and the adjusted income
tax rate(1) was 26.1%. The current tax impact of the increase in the Alberta
statutory corporate income tax rate on the adjusted income tax expense(1) was partially offset by a decrease in certain non-deductible items.
ADJUSTED DEBT(1)
During the second quarter of 2015, adjusted debt(1) decreased by $309 million from the first quarter of 2015, primarily
driven by net repayments on Loblaw's unsecured term loan facilities,
partially offset by net borrowings on Choice Properties' senior
unsecured committed credit facility. The Company's adjusted debt(1) to rolling year adjusted EBITDA(1) was 2.9x in the second quarter of 2015 compared to 4.4x in the same
period in 2014.
Loblaw has decreased its adjusted debt(1) balance by $1,345 million since its acquisition of Shoppers Drug Mart,
leaving only $355 million of further reduction to achieve its debt
target.
SYNERGIES
In the second quarter of 2015, Loblaw realized net synergies of
approximately $53 million (2014 - $8 million), generated primarily from
improved cost of inventories sold and purchasing efficiencies in goods
not for resale.
Total net synergies achieved since the closing of the acquisition were
$198 million. Loblaw expects to achieve annualized synergies of
$300 million (net of related costs) in the third year following the
close of the acquisition of Shoppers Drug Mart.
OUTLOOK(2)
The outlook reflects the underlying operating performance of the
Company's operating segments as discussed below.
For full year 2015, Weston Foods expects a decline in adjusted operating
income(1) due to the costs associated with capital investments, incremental
investments in innovation and capabilities and higher input costs. This
decline will be partially offset by the positive impact of pricing,
volume growth and productivity improvements. On an equivalent 52-week
basis, management continues to expect the decline in adjusted operating
income(1) to be greater in the first half of the year than in the second half,
primarily driven by performance in the fourth quarter.
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, in 2015 Loblaw expects to:
-
maintain positive same-store sales and stable gross margin (excluding
synergies) in Retail;
-
achieve net synergies as a result of the acquisition of Shoppers Drug
Mart slightly exceeding $200 million;
-
continue to drive net efficiencies across the food retail business by
achieving reductions in supply chain, administrative functions and IT,
while still investing in key areas, like eCommerce;
-
grow adjusted operating income(1) in its food retail business, excluding synergies, and experience a
decline in adjusted operating income(1) in its drug retail business, excluding synergies, as a result of
investments in key projects and other factors;
-
grow consolidated adjusted net earnings available to common shareholders(1) (including synergies) relative to 2014, however not at the same level
achieved in the first half of 2015;
-
invest approximately $1,200 million in capital expenditures; and
-
achieve its deleveraging target in 2015.
Loblaw's expectations for 2015 also include the following:
-
competitive intensity expected to remain high, but relatively stable as
industry square footage growth in supermarket-type merchandise
moderates; and
-
continued pressure in our drug retail business from the ongoing impact
of healthcare reform.
DECLARATION OF QUARTERLY DIVIDENDS
Subsequent to the end of the second quarter of 2015, the Company's Board
of Directors declared a quarterly dividend on GWL Common Shares,
Preferred Shares, Series I, Preferred Shares, Series III, Preferred
Shares, Series IV and Preferred Shares, Series V payable as follows:
|
|
|
|
Common Shares
|
|
|
|
|
|
$0.425 per share payable October 1, 2015, to
shareholders of record September 15, 2015;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Shares, Series I
|
|
|
|
|
|
$0.3625 per share payable September 15, 2015, to
shareholders of record August 31, 2015;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Shares, Series III
|
|
|
|
|
|
$0.3250 per share payable October 1, 2015, to
shareholders of record September 15, 2015;
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Shares, Series IV
|
|
|
|
|
|
$0.3250 per share payable October 1, 2015, to
shareholders of record September 15, 2015; and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred Shares, Series V
|
|
|
|
|
|
$0.296875 per share payable October 1, 2015, to
shareholders of record September 15, 2015.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FORWARD-LOOKING STATEMENTS
This News Release contains forward-looking statements about the
Company's objectives, plans, goals, aspirations, strategies, financial
condition, results of operations, cash flows, performance, prospects
and opportunities. 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,
debt reduction targets, and planned capital investments. 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", "maintain", "achieve", "grow", 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 sales and volume growth, 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 the
"Enterprise Risks and Risk Management" section of the Management's
Discussion and Analysis ("MD&A") in the Company's 2014 Annual Report,
the "Enterprise Risks and Risk Management" section of the MD&A included
in the Company's 2015 Second Quarter Report to Shareholders and the
Company's Annual Information Form ("AIF") for the year ended
December 31, 2014. Such risks and uncertainties include:
-
failure by Loblaw to realize the anticipated strategic benefits or
operational, competitive and cost synergies following the acquisition
of Shoppers Drug Mart;
-
failure by Loblaw to reduce indebtedness associated with the acquisition
of Shoppers Drug Mart to bring leverage ratios to a level consistent
with investment grade ratings;
-
failure to realize benefits from investments in the Company's IT
systems, including the Company's IT systems implementation, or
unanticipated results from these initiatives;
-
failure to realize anticipated results, including revenue growth,
anticipated cost savings or operating efficiencies from the Company's
major initiatives, including those from restructuring;
-
the inability of the Company's IT infrastructure to support the
requirements of the Company's business;
-
changes in Loblaw's estimate of inventory cost as a result of its IT
system upgrade;
-
changes to the regulation of generic prescription drug prices and the
reduction of reimbursements under public drug benefit plans and the
elimination or reduction of professional allowances paid by drug
manufacturers;
-
failure to achieve desired results in labour negotiations, including the
terms of future collective bargaining agreements which could lead to
work stoppages;
-
heightened competition, whether from current competitors or new entrants
to the marketplace;
-
changes in economic conditions, including the rate of inflation or
deflation, changes in interest and currency exchange rates and
derivative and commodity prices;
-
changes in the Company's income, capital, commodity, property and other
tax and regulatory liabilities including changes in tax laws,
regulations or future assessments;
-
the risk that the Company will be unsuccessful in any material
litigation, class action, or regulatory proceeding;
-
the inability of the Company to manage inventory to minimize the impact
of obsolete or excess inventory and to control shrink;
-
the risk that the Company would experience a financial loss if its
counterparties fail to meet their obligations in accordance with the
terms and conditions of their contracts with the Company; and
-
the inability of Loblaw to collect on and fund its credit card
receivables.
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
"Operating and Financial Risks and Risk Management" in the Company's
AIF for the year ended December 31, 2014. 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.
NON-GAAP FINANCIAL MEASURES
The Company uses the following non-GAAP financial measures: EBITDA,
adjusted EBITDA and adjusted EBITDA margin, adjusted operating income
and adjusted operating margin, adjusted net earnings attributable to
shareholders of the Company, adjusted basic net earnings per common
share, adjusted debt and adjusted debt to rolling year adjusted EBITDA.
In addition to these items, the following measures are used by
management in calculating adjusted basic net earnings per common share:
adjusted net interest expense and other financing charges, adjusted
income taxes, adjusted income tax rate and adjusted net earnings
available to common shareholders of the Company. The Company believes
these non-GAAP financial measures provide useful information to both
management and investors in measuring the financial performance 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. The excluded items are not necessarily reflective of the
Company's underlying operating performance and make comparisons of
underlying financial performance between periods difficult. From time
to time, the Company may exclude 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 they should not be
construed as an alternative to other financial measures determined in
accordance with GAAP.
EBITDA, Adjusted EBITDA and Adjusted Operating Income The Company believes adjusted EBITDA is useful in assessing the
underlying operating performance of the Company's ongoing operations
and in assessing the Company's ability to generate cash flows to fund
its cash requirements, including its capital investment program and
debt reduction objectives. The Company believes adjusted operating
income is also useful in assessing the Company's underlying operating
performance and in making decisions regarding the ongoing operations of
its business.
The following table reconciles EBITDA, adjusted EBITDA and adjusted
operating income to operating income (loss), which is reconciled to
GAAP net earnings (loss) attributable to shareholders of the Company
reported for the periods ended as indicated.
|
|
12 Weeks Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Jun. 20, 2015
|
|
|
|
|
Jun. 14, 2014
|
|
(unaudited)
($ millions)
|
| Weston Foods
| Loblaw
| Other(i)
| Consolidated
|
|
|
Weston
Foods
|
Loblaw
|
Other(i)
|
Consolidated
|
|
Net earnings (loss) attributable to shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of the Company
|
|
|
|
| $ | 51 |
|
|
|
|
|
|
$
|
(208)
|
|
|
Add impact of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests
|
|
|
|
| 103
|
|
|
|
|
|
|
(248)
|
|
|
|
Income taxes
|
|
|
|
| 129
|
|
|
|
|
|
|
(145)
|
|
|
|
Net interest expense and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
financing charges
|
|
|
|
| 140
|
|
|
|
|
|
|
159
|
|
|
Operating income (loss)
|
| $ | 38 |
| $ | 411 |
| $ | (26) | $ | 423 |
|
|
|
$
|
45
|
|
$
|
(458)
|
|
$
|
(29)
|
|
$
|
(442)
|
|
|
Depreciation and amortization
|
| 19
|
| 369
|
|
| 388
|
|
|
|
16
|
|
384
|
|
|
400
|
|
|
EBITDA
|
| $ | 57 |
| $ | 780 |
| $ | (26) | $ | 811 |
|
|
|
$
|
61
|
|
$
|
(74)
|
|
$
|
(29)
|
|
$
|
(42)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
| $ | 38 |
| $ | 411 |
| $ | (26) | $ | 423 |
|
|
|
$
|
45
|
|
$
|
(458)
|
|
$
|
(29)
|
|
$
|
(442)
|
|
|
Add impact of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
with Shoppers Drug Mart
|
|
| 124
|
|
| 124
|
|
|
|
|
125
|
|
|
125
|
|
|
|
Restructuring and other charges
|
|
| 54
|
|
| 54
|
|
|
|
3
|
|
|
|
3
|
|
|
|
Fixed asset and other related impairments,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of recoveries
|
|
| 4
|
|
| 4
|
|
|
|
|
2
|
|
|
2
|
|
|
|
Charge related to apparel inventory
|
|
| 8
|
|
| 8
|
|
|
|
|
|
|
|
|
|
Fair value adjustment of derivatives
|
| 1
|
| 9
|
|
| 10
|
|
|
|
3
|
|
|
|
3
|
|
|
|
Shoppers Drug Mart acquisition costs
|
|
|
|
|
|
|
|
|
52
|
|
|
52
|
|
|
|
Recognition of fair value increment on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
inventory sold
|
|
|
|
|
|
|
|
|
622
|
|
|
622
|
|
|
|
Charge related to inventory measurement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other conversion differences
|
|
|
|
|
|
|
|
|
190
|
|
|
190
|
|
|
|
Foreign currency translation
|
|
|
| 26
| 26
|
|
|
|
|
|
29
|
|
29
|
|
|
Adjusted operating income
|
| $ | 39 |
| $ | 610 |
|
| $ | 649 |
|
|
|
$
|
51
|
|
$
|
533
|
|
|
$
|
584
|
|
|
Depreciation and amortization excluding the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
impact of the above adjustments(ii) |
| 19
|
| 245
|
|
| 264
|
|
|
|
16
|
|
259
|
|
|
275
|
|
|
Adjusted EBITDA
|
| $ | 58 |
| $ | 855 |
|
| $ | 913 |
|
|
|
$
|
67
|
|
$
|
792
|
|
|
$
|
859
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Represents the effect of foreign currency translation on a portion of
the United States ("U.S.") dollar denominated cash and cash
equivalents and short term investments held by foreign operations.
|
(ii)
|
Depreciation and amortization for the calculation of adjusted EBITDA at
Loblaw excludes $124 million (2014 - $125 million) of
amortization of intangible assets acquired with Shoppers Drug Mart.
|
|
|
24 Weeks Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Jun. 20, 2015
|
|
|
|
|
Jun. 14, 2014
|
|
(unaudited)
($ millions)
|
| Weston Foods
| Loblaw
| Other(i)
| Consolidated
|
|
|
Weston
Foods
|
Loblaw
|
Other(i)
|
Consolidated
|
|
Net earnings (loss) attributable to shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of the Company
|
|
|
|
| $ | 218 |
|
|
|
|
|
|
$
|
(88)
|
|
|
Add impact of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests
|
|
|
|
| 182
|
|
|
|
|
|
|
(204)
|
|
|
|
Income taxes
|
|
|
|
| 225
|
|
|
|
|
|
|
(99)
|
|
|
|
Net interest expense and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
financing charges
|
|
|
|
|
| 317
|
|
|
|
|
|
|
327
|
|
|
Operating income (loss)
|
| $ | 79 |
| $ | 823 |
| $ | 40 | $ | 942 |
|
|
|
$
|
106
|
|
$
|
(184)
|
|
$
|
14
|
|
$
|
(64)
|
|
|
Depreciation and amortization
|
| 37
|
| 739
|
|
| 776
|
|
|
|
32
|
|
579
|
|
|
611
|
|
|
EBITDA
|
| $ | 116 |
| $ | 1,562 |
| $ | 40 | $ | 1,718 |
|
|
|
$
|
138
|
|
$
|
395
|
|
$
|
14
|
|
$
|
547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
| $ | 79 |
| $ | 823 |
| $ | 40 | $ | 942 |
|
|
|
$
|
106
|
|
$
|
(184)
|
|
$
|
14
|
|
$
|
(64)
|
|
|
Add impact of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
with Shoppers Drug Mart
|
|
| 248
|
|
| 248
|
|
|
|
|
125
|
|
|
125
|
|
|
|
Restructuring and other charges
|
|
| 4 |
| 66
|
|
| 70
|
|
|
|
3
|
|
|
|
3
|
|
|
|
Fixed asset and other related impairments,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of recoveries
|
|
| 7
|
|
| 7
|
|
|
|
|
5
|
|
|
5
|
|
|
|
Charge related to apparel inventory
|
|
| 8
|
|
| 8
|
|
|
|
|
|
|
|
|
|
Fair value adjustment of derivatives
|
|
|
| (3)
|
|
| (3)
|
|
|
|
(6)
|
|
|
|
(6)
|
|
|
|
Shoppers Drug Mart divestitures loss and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition costs
|
|
|
|
|
| 2 |
|
|
|
|
| 2 |
|
|
|
|
60
|
|
|
60
|
|
|
|
Inventory loss
|
|
| 1 |
|
|
|
|
|
|
|
| 1 |
|
|
|
|
|
Recognition of fair value increment on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
inventory sold
|
|
|
|
|
|
|
|
|
622
|
|
|
622
|
|
|
|
Charge related to inventory measurement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other conversion differences
|
|
|
|
|
|
|
|
|
190
|
|
|
190
|
|
|
|
Foreign currency translation
|
|
|
| (40)
| (40)
|
|
|
|
|
|
(14)
|
|
(14)
|
|
|
Adjusted operating income
|
| $ | 84 |
| $ | 1,151 |
|
| $ | 1,235 |
|
|
|
$
|
103
|
|
$
|
818
|
|
|
$
|
921
|
|
|
Depreciation and amortization excluding the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
impact of the above adjustments(ii) |
| 37
|
| 491
|
|
| 528
|
|
|
|
32
|
|
454
|
|
|
486
|
|
|
Adjusted EBITDA
|
| $ | 121 |
| $ | 1,642 |
|
| $ | 1,763 |
|
|
|
$
|
135
|
|
$
|
1,272
|
|
|
$
|
1,407
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Represents the effect of foreign currency translation on a portion of
the U.S. dollar denominated cash and cash equivalents and short
term investments held by foreign operations.
|
(ii)
|
Depreciation and amortization for the calculation of adjusted EBITDA at
Loblaw excludes $248 million (2014 - $125 million) of
amortization of intangible assets acquired with Shoppers Drug Mart.
|
The following items impacted operating income in the second quarters
of 2015 and 2014:
Amortization of intangible assets acquired with Shoppers Drug Mart The acquisition of Shoppers Drug Mart in the second quarter of 2014
included approximately $6 billion of definite life intangible assets,
which are being amortized over their estimated useful lives. In the
second quarter of 2015, $124 million (2014 - $125 million) of
amortization was recognized in operating income. Loblaw expects to
recognize annual amortization of approximately $550 million associated
with the acquired intangible assets over the next nine years and
decreasing thereafter.
Restructuring and other charges The Company continuously evaluates strategic and cost reduction
initiatives related to its store infrastructure, manufacturing assets,
distribution networks and administrative infrastructure with the
objective of ensuring a low cost operating structure. Restructuring
activities related to these initiatives are ongoing. In the second
quarter of 2015, Loblaw recorded $54 million (2014 - nil) of
restructuring and other charges. Of this amount, $45 million related to
a restructuring plan to close 52 unprofitable retail locations across a
range of banners and formats, which included $30 million for severance
and lease termination costs and $15 million for asset impairments
associated with these retail locations. The additional $9 million of
restructuring charges was related to store support restructuring
activities.
Fixed asset and other related impairments, net of recoveries At each balance sheet date, the Company assesses and, when required,
records impairments and recoveries of previous impairments related to
the carrying value of its fixed assets, investment properties and
intangible assets. In the second quarter of 2015, Loblaw recorded a net
charge of $4 million (2014 - $2 million) related to fixed assets and
other related impairments.
Charge related to apparel inventory In the second quarter of 2015, Loblaw entered into an agreement to
liquidate certain older Canadian apparel inventory in the U.S., and
recorded a charge of $8 million (2014 - nil).
Fair value adjustment of derivatives The Company is exposed to commodity price and U.S. dollar exchange
rate fluctuations primarily as a result of purchases of certain raw
materials, fuels and utilities. In accordance with the Company's
commodity risk management policy, the Company enters into commodity and
foreign currency derivatives to reduce the impact of price fluctuations
in forecasted raw material and fuel purchases over a specified period
of time. These derivatives are not acquired for trading or speculative
purposes. Pursuant to the Company's derivative instruments accounting
policy, certain changes in fair value, which include realized and
unrealized gains and losses related to future purchases of raw
materials and fuel, are recorded in operating income. In the second
quarter of 2015, Weston Foods recorded a charge of $1 million (2014 -
$3 million), and Loblaw recorded a charge of $9 million (2014 - nil)
related to the fair value adjustment of commodity and foreign currency
derivatives. Despite the impact of accounting for these commodity and
foreign currency derivatives on the Company's reported results, the
derivatives have the economic impact of largely mitigating the
associated risks arising from price and exchange rate fluctuations in
the underlying commodities.
Shoppers Drug Mart acquisition costs In the second quarter of 2014, Loblaw incurred $52 million of
acquisition-related costs.
Recognition of the fair value increment on inventory sold In connection with the acquisition of Shoppers Drug Mart, acquired
assets and liabilities were recorded on the Company's consolidated
balance sheet at their fair value. This resulted in a fair value
adjustment to Shoppers Drug Mart inventory on the date of acquisition
of $798 million representing the difference between inventory cost and
its fair value. In the second quarter of 2014, $622 million was
recognized in gross profit and operating income.
Charge related to inventory measurement and other conversion differences As of the end of 2014, Loblaw had completed the conversion of
substantially all of its corporate grocery locations and associated
distribution centres to the new IT systems. The implementation of a
perpetual inventory system, combined with visibility to integrated
costing information provided by the new IT systems, enabled Loblaw to
estimate the cost of inventory using a more precise system-generated
average cost. This impact was estimated to be a decrease of
$190 million in the value of the inventory, which was recognized in
gross profit and operating income in the second quarter of 2014. Loblaw
is undertaking the conversion of its remaining grocery locations during
2015 and additional impacts may result. In 2015, no additional cost has
been recognized in gross profit and operating income.
Foreign currency translation The Company's consolidated financial statements are expressed in
Canadian dollars. A portion of the Company's (excluding Loblaw's) net
assets are denominated in U.S. dollars and as a result, the Company is
exposed to foreign currency translation gains and losses. The impact of
foreign currency translation on a portion of the U.S. dollar
denominated net assets, primarily cash and cash equivalents and
short term investments held by foreign operations, is recorded in
operating income and the associated tax, if any, is recorded in income
taxes. In the second quarter of 2015, a foreign currency translation
loss of $26 million (2014 - $29 million) was recorded in operating
income as a result of the depreciation of the U.S. dollar relative to
the Canadian dollar. An income tax recovery of $3 million (2014 - nil)
was also recorded associated with this foreign currency translation
loss.
Adjusted Net Interest Expense and Other Financing Charges The Company believes adjusted net interest expense and other financing
charges is useful in assessing the ongoing net financing costs of the
Company.
The following table reconciles adjusted net interest expense and other
financing charges to GAAP net interest expense and other financing
charges reported for the periods ended as indicated.
|
|
12 Weeks Ended
|
|
|
24 Weeks Ended
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
| Jun. 20, 2015 |
|
Jun. 14, 2014
|
| Jun. 20, 2015 |
|
Jun. 14, 2014
|
|
Net interest expense and other financing charges
|
$ |
| 140 |
|
$
|
|
159
|
| $
|
| 317 |
|
$
|
|
327
|
|
Less:
|
Fair value adjustment of the Trust Unit liability
|
| (22) |
|
|
6
|
|
| 17
|
|
|
14
|
|
|
Fair value adjustment of the forward sale agreement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for 9.6 million Loblaw common shares
|
| 14
|
|
|
3
|
|
| 11
|
|
|
52
|
|
|
Accelerated amortization of deferred financing costs
|
| 8
|
|
|
14
|
|
| 11
|
|
|
14
|
|
|
Shoppers Drug Mart net financing charges
|
|
|
|
|
|
|
|
|
|
|
15
|
|
Adjusted net interest expense and other financing charges
| $ |
| 140 |
|
$
|
|
136
|
|
$ |
| 278 |
|
$
|
|
232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In addition to certain items described in the "EBITDA, Adjusted EBITDA
and Adjusted Operating Income" section above, the following items
impacted net interest expense and other financing charges in the second
quarters of 2015 and 2014:
Fair value adjustment of the Trust Unit liability The Company is exposed to market price fluctuations as a result of the
Choice Properties Trust Units held by unitholders other than the
Company. These Trust Units are presented as a liability on the
Company's consolidated balance sheets as they are redeemable for cash
at the option of the holder, subject to certain restrictions. This
liability is recorded at fair value at each reporting period based on
the market price of Trust Units at the end of each period. In the
second quarter of 2015, the Company recorded a gain of $22 million
(2014 - loss of $6 million) in net interest expense and other financing
charges related to the fair value adjustment of the Trust Unit
liability as a result of the changes in the market price of Trust
Units. An increase (decrease) in the market price of Trust Units
results in a charge (income) to net interest expense and other
financing charges.
Fair value adjustment of the forward sale agreement for 9.6 million
Loblaw common shares The fair value adjustment of the forward sale agreement for 9.6 million
Loblaw common shares is non-cash and is included in net interest
expense and other financing charges. The adjustment is determined by
changes in the value of the underlying Loblaw common shares. In the
second quarter of 2015, a charge of $14 million (2014 - $3 million) was
recorded in net interest expense and other financing charges as a
result of the changes in the market price of Loblaw common shares. An
increase (decrease) in the market price of Loblaw common shares results
in a charge (income) to net interest expense and other financing
charges.
Accelerated amortization of deferred financing costs In the second quarter of 2015, Loblaw recorded a charge of $8 million
(2014 - $14 million) related to the accelerated amortization of
deferred financing costs due to the repayment of $662 million (2014 -
$1.6 billion) of its Acquisition Term Loan.
Adjusted Income Taxes and Adjusted Income Tax Rate The Company believes the adjusted income tax rate applicable to adjusted
earnings before taxes is useful in assessing the underlying operating
performance of its business.
The following table reconciles the effective income tax rate applicable
to adjusted earnings before taxes to the GAAP effective income tax rate
applicable to earnings before taxes as reported for the periods ended
as indicated.
|
|
12 Weeks Ended
|
|
|
24 Weeks Ended
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
($ millions except where otherwise indicated)
| Jun. 20, 2015 |
Jun. 14, 2014
| Jun. 20, 2015 |
Jun. 14, 2014
|
Adjusted operating income(i) |
| $ | 649 |
|
|
$
|
584
|
|
| $ | 1,235 |
|
|
$
|
921
|
|
Adjusted net interest expense and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
financing charges(i) |
| 140
|
|
|
136
|
|
| 278
|
|
|
232
|
|
Adjusted earnings before taxes
|
| $ | 509 |
|
|
$
|
448
|
|
| $ | 957 |
|
|
$
|
689
|
|
Income taxes
|
| $ | 129 |
|
|
$
|
(145)
|
|
| $ | 225 |
|
|
$
|
(99)
|
|
Less:
|
Tax impact of items excluded from adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
earnings before taxes(ii) |
| (54) |
|
|
(262)
|
|
| (80) |
|
|
(277)
|
|
|
|
Provincial income tax rate change
|
| 45 |
|
|
|
| 45
|
|
|
|
Adjusted income taxes
|
| $ | 138 |
|
|
$
|
117
|
|
| $ | 260 |
|
|
$
|
178
|
|
Effective income tax rate applicable to earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before taxes
|
| 45.6% |
|
|
24.1%
|
|
| 36.0% |
|
|
25.3%
|
|
Adjusted income tax rate applicable to adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
earnings before taxes
|
| 27.1% |
|
|
26.1%
|
|
| 27.2% |
|
|
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 operating income table and
the adjusted net interest expense and other financing
charges table above for a complete list of items excluded from adjusted
earnings before taxes.
|
In addition to certain items described in the "EBITDA, Adjusted EBITDA
and Adjusted Operating Income" and "Adjusted Net Interest Expense and
Other Financing Charges" sections above, the following item impacted
income taxes and the effective income tax rate in the second quarter of
2015:
Provincial income tax rate change In the second quarter of 2015, the government of Alberta announced an
increase to the provincial corporate income tax rate from 10% to 12%.
The increase was effective July 1, 2015, but was enacted on
June 19, 2015. As a result, the Company recorded a charge of
$45 million related to the re-measurement of deferred tax liabilities.
Adjusted Basic Net Earnings per Common Share and Adjusted Net Earnings The Company believes adjusted basic net earnings per common share and
adjusted net earnings are useful in assessing the Company's underlying
operating performance and in making decisions regarding the ongoing
operations of its business.
The following table reconciles adjusted basic net earnings per common
share and adjusted net earnings to GAAP basic net earnings (loss) per
common share reported for the periods ended as indicated.
|
|
12 Weeks Ended
|
|
|
24 Weeks Ended
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ except where otherwise indicated)
|
| Jun. 20, 2015
|
|
|
Jun. 14, 2014
|
|
|
| Jun. 20, 2015
|
|
|
Jun. 14, 2014
|
|
|
Basic net earnings (loss) per common share
|
| $ | 0.32 |
|
|
|
$
|
(1.71)
|
|
|
| $ | 1.55 |
|
|
|
$
|
(0.85)
|
|
|
Add impact of the following(i):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
with Shoppers Drug Mart
|
| 0.33
|
|
|
|
0.33
|
|
|
| 0.65
|
|
|
|
0.33
|
|
|
|
Restructuring and other charges
|
| 0.17
|
|
|
|
0.02
|
|
|
| 0.23
|
|
|
|
0.02
|
|
|
|
Fixed asset and other related impairments,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of recoveries
|
| 0.01
|
|
|
|
0.01
|
|
|
| 0.02
|
|
|
|
0.02
|
|
|
|
Charge related to apparel inventory
|
| 0.02
|
|
|
|
|
|
| 0.02
|
|
|
|
|
|
|
Fair value adjustment of derivatives
|
| 0.03
|
|
|
|
0.02
|
|
|
| (0.01)
|
|
|
|
(0.03)
|
|
|
|
Shoppers Drug Mart divestitures loss and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acquisition costs
|
|
|
|
|
0.16
|
|
|
| 0.01
|
|
|
|
0.25
|
|
|
|
Inventory loss
|
|
|
|
|
|
|
| 0.01
|
|
|
|
|
|
|
Recognition of fair value increment on inventory sold
|
|
|
|
|
1.63
|
|
|
|
|
|
|
1.63
|
|
|
|
Charge related to inventory measurement and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
conversion differences
|
|
|
|
|
0.49
|
|
|
|
|
|
|
0.49
|
|
|
|
Fair value adjustment of the forward sale agreement
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for 9.6 million Loblaw common shares
|
| 0.08
|
|
|
|
0.02
|
|
|
| 0.06
|
|
|
|
0.31
|
|
|
|
Fair value adjustment of the Trust Unit liability
|
| (0.02)
|
|
|
|
0.01
|
|
|
| 0.03
|
|
|
|
0.04
|
|
|
|
Accelerated amortization of deferred financing costs
|
| 0.02
|
|
|
|
0.04
|
|
|
| 0.03
|
|
|
|
0.04
|
|
|
|
Provincial income tax rate change
|
| 0.19
|
|
|
|
|
|
| 0.19
|
|
|
|
|
|
|
Foreign currency translation
|
| 0.18
|
|
|
|
0.23
|
|
|
| (0.27)
|
|
|
|
(0.11)
|
|
|
Adjusted basic net earnings per common share
|
| $ | 1.33 |
|
|
|
$
|
1.25
|
|
|
| $ | 2.52 |
|
|
|
$
|
2.14
|
|
|
Weighted average common shares outstanding (millions)
|
| 127.7
|
|
|
|
127.8
|
|
|
| 127.7
|
|
|
|
127.7
|
|
|
Adjusted net earnings attributable to shareholders of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
the Company ($ millions)
|
| $ | 180 |
|
|
|
$
|
169
|
|
|
| $ | 342 |
|
|
|
$
|
293
|
|
|
Prescribed dividends on preferred shares in share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
capital ($ millions)
|
| 10
|
|
|
|
10
|
|
|
| 20
|
|
|
|
20
|
|
|
Adjusted net earnings available to common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
shareholders of the Company ($ millions)
|
| $ | 170 |
|
|
|
$
|
159
|
|
|
| $ | 322 |
|
|
|
$
|
273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) Net of income taxes and non-controlling interests, as applicable.
|
Adjusted Debt The Company believes adjusted debt is useful in assessing the amount of
financial leverage employed by the Company. In the table below, the
Company has presented adjusted debt as at March 28, 2014, the date of
acquisition of Shoppers Drug Mart, as this is the baseline for the
Company's debt reduction target.
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 ended as indicated.
|
|
As at
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions)
|
| Jun. 20, 2015
|
|
|
|
Dec. 31, 2014
|
|
|
|
Mar. 28, 2014
|
|
|
|
Jun. 14, 2014
|
|
|
Bank indebtedness
|
| $ | 275 |
|
|
|
$
|
162
|
|
|
|
$
|
295
|
|
|
|
$
|
335
|
|
|
Short term debt
|
| 1,021
|
|
|
|
1,101
|
|
|
|
1,070
|
|
|
|
1,080
|
|
|
Long term debt due within one year
|
| 1,009
|
|
|
|
420
|
|
|
|
902
|
|
|
|
74
|
|
|
Long term debt
|
| 11,318
|
|
|
|
12,306
|
|
|
|
12,327
|
|
|
|
12,862
|
|
|
Trust Unit liability
|
| 513
|
|
|
|
494
|
|
|
|
487
|
|
|
|
493
|
|
|
Capital securities
|
| 225
|
|
|
|
225
|
|
|
|
224
|
|
|
|
224
|
|
|
Certain other liabilities
|
| 28
|
|
|
|
28
|
|
|
|
39
|
|
|
|
34
|
|
|
Fair value of financial derivatives related to the above debt
|
| (375)
|
|
|
|
(367)
|
|
|
|
(484)
|
|
|
|
(491)
|
|
|
Total debt
|
| $ | 14,014 |
|
|
|
$
|
14,369
|
|
|
|
$
|
14,860
|
|
|
|
$
|
14,611
|
|
|
Less:
|
Independent securitization trusts
|
| $ | 1,255 |
|
|
|
$
|
1,355
|
|
|
|
$
|
1,355
|
|
|
|
$
|
1,355
|
|
|
|
Trust Unit liability
|
| 513
|
|
|
|
494
|
|
|
|
487
|
|
|
|
493
|
|
|
|
Independent funding trusts
|
| 504
|
|
|
|
498
|
|
|
|
469
|
|
|
|
476
|
|
|
|
Guaranteed Investment Certificates
|
| 621
|
|
|
|
634
|
|
|
|
443
|
|
|
|
528
|
|
|
Adjusted debt
|
| $ | 11,121 |
|
|
|
$
|
11,388
|
|
|
|
$
|
12,106
|
|
|
|
$
|
11,759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SELECTED FINANCIAL INFORMATION
The following includes selected unaudited quarterly financial
information which is prepared by management in accordance with
International Financial Reporting Standards ("IFRS") and is based on
the Company's 2015 Second Quarter Report to Shareholders. This
financial information does not contain all disclosures required by
IFRS, and accordingly, this financial information should be read in
conjunction with the Company's 2014 Annual Report and 2015 Second
Quarter Report to Shareholders available in the Investor Centre section
of the Company's website at www.weston.ca.
Condensed Consolidated Statements of Earnings
(unaudited)
|
12 Weeks Ended
|
|
24 Weeks Ended
|
|
(millions of Canadian dollars except
|
|
|
|
|
|
|
|
|
|
|
|
|
|
where otherwise indicated)
| Jun. 20, 2015 |
|
|
Jun. 14, 2014
|
|
| Jun. 20, 2015 |
|
|
Jun. 14, 2014
|
|
|
Revenue |
| $ | 10,851 |
|
|
|
$
|
10,598
|
|
|
| $ | 21,260 |
|
|
|
$
|
18,210
|
|
|
Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of inventories sold
|
| 7,790
|
|
|
|
8,422
|
|
|
| 15,211
|
|
|
|
14,090
|
|
|
|
Selling, general and administrative expenses
|
| 2,638
|
|
|
|
2,618
|
|
|
| 5,107
|
|
|
|
4,184
|
|
|
|
| 10,428
|
|
|
|
11,040
|
|
|
| 20,318
|
|
|
|
18,274
|
|
|
Operating Income (Loss) |
| 423
|
|
|
|
(442)
|
|
|
| 942
|
|
|
|
(64)
|
|
|
Net Interest Expense and
Other Financing Charges
|
| 140
|
|
|
|
159
|
|
|
| 317
|
|
|
|
327
|
|
|
Earnings (Loss) Before Income Taxes |
| 283
|
|
|
|
(601)
|
|
|
| 625
|
|
|
|
(391)
|
|
|
Income Taxes
|
| 129
|
|
|
|
(145)
|
|
|
| 225
|
|
|
|
(99)
|
|
|
Net Earnings (Loss) |
| 154
|
|
|
|
(456)
|
|
|
| 400
|
|
|
|
(292)
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the Company
|
| 51
|
|
|
|
(208)
|
|
|
| 218 |
|
|
|
(88)
|
|
|
|
Non-Controlling Interests
|
| 103
|
|
|
|
(248)
|
|
|
| 182
|
|
|
|
(204)
|
|
|
Net Earnings (Loss) |
| $ | 154 |
|
|
|
$
|
(456)
|
|
|
| $ | 400 |
|
|
|
$
|
(292)
|
|
|
Net Earnings (Loss) per Common Share ($) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
| $ | 0.32 |
|
|
|
$
|
(1.71)
|
|
|
| $ | 1.55 |
|
|
|
$
|
(0.85)
|
|
|
|
Diluted
|
| $ | 0.31 |
|
|
|
$
|
(1.71)
|
|
|
| $ | 1.53 |
|
|
|
$
|
(0.85)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
(unaudited)
|
|
|
|
|
|
|
|
As at
|
|
|
|
|
(millions of Canadian dollars)
|
|
|
| Jun. 20, 2015 |
|
|
|
Jun. 14, 2014(3)(4) |
|
|
|
Dec. 31, 2014(3)(4) |
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
| $ | 1,592 |
|
|
$
|
1,452
|
|
|
$
|
1,333
|
|
Short term investments
|
|
|
| 1,118 |
|
|
|
897
|
|
|
|
1,072
|
|
Accounts receivable
|
|
|
| 1,330
|
|
|
|
1,152
|
|
|
|
1,318
|
|
Credit card receivables
|
|
|
| 2,647
|
|
|
|
2,561
|
|
|
|
2,630
|
|
Inventories
|
|
|
| 4,495
|
|
|
|
4,428
|
|
|
|
4,463
|
|
Income taxes recoverable
|
|
|
| 45
|
|
|
|
58
|
|
|
|
30
|
|
Prepaid expenses and other assets
|
|
|
| 261
|
|
|
|
237
|
|
|
|
223
|
|
Assets held for sale
|
|
|
| 24
|
|
|
|
44
|
|
|
|
23
|
Total Current Assets |
|
|
| 11,512
|
|
|
|
10,829
|
|
|
|
11,092
|
Fixed Assets
|
|
|
| 10,989
|
|
|
|
10,824
|
|
|
|
10,938
|
Investment Properties
|
|
|
| 177
|
|
|
|
148
|
|
|
|
185
|
Intangible Assets
|
|
|
| 9,523
|
|
|
|
10,062
|
|
|
|
9,786
|
Goodwill
|
|
|
| 3,778
|
|
|
|
3,734
|
|
|
|
3,756
|
Deferred Income Taxes
|
|
|
| 172
|
|
|
|
336
|
|
|
|
215
|
Security Deposits
|
|
|
| 90
|
|
|
|
187
|
|
|
|
92
|
Franchise Loans Receivable
|
|
|
| 384
|
|
|
|
380
|
|
|
|
399
|
Other Assets
|
|
|
| 725
|
|
|
|
777
|
|
|
|
683
|
Total Assets |
|
| $ | 37,350 |
|
|
$
|
37,277
|
|
|
$
|
37,146
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank indebtedness
|
|
| $ | 275 |
|
|
$
|
335
|
|
|
$
|
162
|
|
Trade payables and other liabilities
|
|
|
| 5,086
|
|
|
|
4,829
|
|
|
|
4,934
|
|
Provisions
|
|
|
| 119
|
|
|
|
109
|
|
|
|
130
|
|
Short term debt
|
|
|
| 1,021
|
|
|
|
1,080
|
|
|
|
1,101
|
|
Long term debt due within one year
|
|
|
| 1,009
|
|
|
|
74
|
|
|
|
420
|
|
Associate interest
|
|
|
| 184
|
|
|
|
170
|
|
|
|
193
|
|
Capital securities
|
|
|
| 225
|
|
|
|
|
|
|
|
225
|
Total Current Liabilities |
|
|
| 7,919
|
|
|
|
6,597
|
|
|
|
7,165
|
Provisions
|
|
|
| 114
|
|
|
|
88
|
|
|
|
103
|
Long Term Debt
|
|
|
| 11,318
|
|
|
|
12,862
|
|
|
|
12,306
|
Trust Unit Liability
|
|
|
| 513
|
|
|
|
493
|
|
|
|
494
|
Deferred Income Taxes
|
|
|
| 1,990
|
|
|
|
2,148
|
|
|
|
1,980
|
Other Liabilities
|
|
|
| 877
|
|
|
|
831
|
|
|
|
849
|
Capital Securities
|
|
|
|
|
|
|
|
224
|
|
|
|
|
Total Liabilities |
|
|
| 22,731
|
|
|
|
23,243
|
|
|
|
22,897
|
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Share Capital
|
|
|
| 1,000
|
|
|
|
988
|
|
|
|
997
|
Contributed Surplus
|
|
|
| 67
|
|
|
|
77
|
|
|
|
80
|
Retained Earnings
|
|
|
| 6,206
|
|
|
|
6,085
|
|
|
|
6,125
|
Accumulated Other Comprehensive Income
|
|
|
| 117
|
|
|
|
27
|
|
|
|
87
|
Total Equity Attributable to Shareholders of the Company |
|
|
| 7,390
|
|
|
|
7,177
|
|
|
|
7,289
|
Non-Controlling Interests
|
|
|
| 7,229
|
|
|
|
6,857
|
|
|
|
6,960
|
Total Equity |
|
|
| 14,619
|
|
|
|
14,034
|
|
|
|
14,249
|
Total Liabilities and Equity |
|
| $ | 37,350 |
|
|
$
|
37,277
|
|
|
$
|
37,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flows
(unaudited)
|
|
|
12
|
Weeks Ended
|
|
|
|
24
|
Weeks Ended
|
(millions of Canadian dollars)
|
|
| Jun. 20, 2015 |
|
|
|
Jun. 14, 2014(3) |
|
|
| Jun. 20, 2015 |
|
|
|
Jun. 14, 2014(3) |
Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings (loss)
|
| $ | 154 |
|
|
$
|
(456)
|
|
| $ | 400 |
|
|
$
|
(292)
|
|
Income taxes
|
|
| 129
|
|
|
|
(145)
|
|
|
| 225
|
|
|
|
(99)
|
|
Net interest expense and other financing
charges
|
|
| 140
|
|
|
|
159
|
|
|
| 317
|
|
|
|
327
|
|
Depreciation and amortization
|
|
| 388
|
|
|
|
400
|
|
|
| 776
|
|
|
|
611
|
|
Recognition of fair value increment on
inventory sold
|
|
|
|
|
|
|
622
|
|
|
|
|
|
|
|
622
|
|
Charge related to inventory measurement and
other conversion differences
|
|
|
|
|
|
|
190
|
|
|
|
|
|
|
|
190
|
|
Foreign currency translation loss (gain)
|
|
| 26
|
|
|
|
29
|
|
|
| (40)
|
|
|
|
(14)
|
|
Change in credit card receivables
|
|
| (169)
|
|
|
|
(162)
|
|
|
| (17)
|
|
|
|
(23)
|
|
Change in non-cash working capital
|
|
| 344
|
|
|
|
395
|
|
|
| (17)
|
|
|
|
(225)
|
|
Income taxes paid
|
|
| (46)
|
|
|
|
(97)
|
|
|
| (183)
|
|
|
|
(180)
|
|
Interest received
|
|
| 2
|
|
|
|
14
|
|
|
| 5
|
|
|
|
25
|
|
Other
|
|
| 66
|
|
|
|
64
|
|
|
| 85
|
|
|
|
73
|
Cash Flows from Operating Activities |
|
| 1,034
|
|
|
|
1,013
|
|
|
| 1,551
|
|
|
|
1,015
|
Investing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition of Shoppers Drug Mart
Corporation, net of cash acquired
|
|
|
|
|
|
|
(6,619)
|
|
|
|
|
|
|
|
(6,619)
|
|
Fixed asset purchases
|
|
| (231)
|
|
|
|
(227)
|
|
|
| (475)
|
|
|
|
(344)
|
|
Change in short term investments
|
|
| (93)
|
|
|
|
(15)
|
|
|
| (8)
|
|
|
|
605
|
|
Change in franchise investments and other
receivables
|
|
| (22)
|
|
|
|
(19)
|
|
|
| (9)
|
|
|
|
(13)
|
|
Change in security deposits
|
|
| 3
|
|
|
|
1,601
|
|
|
| 4
|
|
|
|
1,605
|
|
Intangible asset additions
|
|
| (43)
|
|
|
|
(38)
|
|
|
| (70)
|
|
|
|
(51)
|
|
Other
|
|
| 9
|
|
|
|
(13)
|
|
|
| (36)
|
|
|
|
(3)
|
Cash Flows used in Investing Activities |
|
| (377)
|
|
|
|
(5,330)
|
|
|
| (594)
|
|
|
|
(4,820)
|
Financing Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in bank indebtedness
|
|
| (24)
|
|
|
|
40
|
|
|
| 113
|
|
|
|
40
|
|
Change in Associate interest
|
|
| (3)
|
|
|
|
(4)
|
|
|
| (9)
|
|
|
|
(4)
|
|
Change in short term debt
|
|
| 10
|
|
|
|
10
|
|
|
| (80)
|
|
|
|
20
|
|
Long term debt
|
- Issued, net of financing charges
|
|
| 259
|
|
|
|
5,136
|
|
|
| 514
|
|
|
|
5,605
|
|
|
- Retired
|
|
| (612)
|
|
|
|
(2,474)
|
|
|
| (968)
|
|
|
|
(2,800)
|
|
Share capital
|
- Issued
|
|
| 2
|
|
|
|
14
|
|
|
| 2
|
|
|
|
14
|
|
|
- Purchased and held in trusts
|
|
| (4)
|
|
|
|
|
|
|
| (4)
|
|
|
|
|
|
|
- Purchased and cancelled
|
|
|
|
|
|
|
|
|
|
| (1)
|
|
|
|
|
|
Loblaw common share capital
|
- Issued
|
|
| 14
|
|
|
|
54
|
|
|
| 28
|
|
|
|
64
|
|
|
- Purchased and held in trusts
|
|
| (11)
|
|
|
|
|
|
|
| (35)
|
|
|
|
|
|
|
- Purchased and cancelled
|
|
| (38)
|
|
|
|
(59)
|
|
|
| (55)
|
|
|
|
(59)
|
|
Loblaw preferred share capital
|
- Issued
|
|
| 221
|
|
|
|
|
|
|
| 221
|
|
|
|
|
|
Interest paid
|
|
| (145)
|
|
|
|
(119)
|
|
|
| (310)
|
|
|
|
(267)
|
|
Dividends
|
- To common shareholders
|
|
| (54)
|
|
|
|
(53)
|
|
|
| (54)
|
|
|
|
(106)
|
|
|
- To preferred shareholders
|
|
| (11)
|
|
|
|
(8)
|
|
|
| (14)
|
|
|
|
(19)
|
|
|
- To minority shareholders
|
|
| (55)
|
|
|
|
(83)
|
|
|
| (55)
|
|
|
|
(108)
|
Cash Flows (used in) from Financing Activities |
|
| (451)
|
|
|
|
2,454
|
|
|
| (707)
|
|
|
|
2,380
|
Effect of foreign currency exchange rate changes
on cash and cash equivalents
|
|
| (7)
|
|
|
|
(6)
|
|
|
| 9
|
|
|
|
8
|
Change in Cash and Cash Equivalents
|
|
| 199
|
|
|
|
(1,869)
|
|
|
| 259
|
|
|
|
(1,417)
|
Cash and Cash Equivalents, Beginning of Period
|
|
| 1,393
|
|
|
|
3,321
|
|
|
| 1,333
|
|
|
|
2,869
|
Cash and Cash Equivalents, End of Period |
| $ | 1,592 |
|
|
$
|
1,452
|
|
| $ | 1,592 |
|
|
$
|
1,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015 SECOND QUARTER REPORT TO SHAREHOLDERS
The Company's 2014 Annual Report and 2015 Second Quarter Report to
Shareholders are available in the Investor Centre section of the
Company's website at www.weston.ca and have been filed with SEDAR and are available online at www.sedar.com.
INVESTOR RELATIONS
Shareholders, security analysts and investment professionals should
direct their requests to Mr. Geoffrey H. Wilson, Senior Vice President,
Investor Relations, Business Intelligence and Communications, at the
Company's Executive Office or by e-mail at investor@weston.ca.
Additional financial information has been filed electronically with
various securities regulators in Canada through SEDAR. This News
Release includes selected information on Loblaw Companies Limited, a
public company with shares trading on the Toronto Stock Exchange. For
information regarding Loblaw, readers should also refer to the
materials filed by Loblaw with SEDAR from time to time. These filings
are also maintained at Loblaw's corporate website at www.loblaw.ca.
CONFERENCE CALL AND WEBCAST PRESENTATION
George Weston Limited will host a conference call as well as an audio
webcast on Friday, July 31, 2015 at 9:00 a.m. (EST). To access via
tele-conference, please dial (647) 427-7450. The playback will be
available two hours after the event at (416) 849-0833, passcode:
76091741#. To access via audio webcast, please visit the Investor
Centre section of www.weston.ca. Pre-registration will be available.
|
|
|
Endnotes |
|
|
|
(1)
|
|
See "Non-GAAP Financial Measures" section of this News Release.
|
(2)
|
|
This News Release contains forward-looking information. See
Forward-Looking Statements 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,
estimates, beliefs and assumptions that were applied in presenting the
conclusions, forecasts and projections presented herein. This News
Release must be read in conjunction with GWL's filings with securities
regulators made from time to time, all of which can be found at www.weston.ca and www.sedar.com.
|
(3)
|
|
Certain 2014 figures have been restated. See note 2, "Significant
Accounting Policies" of the Company's unaudited interim period
condensed consolidated financial statements, included in the 2015
Second Quarter Report to Shareholders.
|
(4)
|
|
Certain 2014 figures have been restated. See note 4, "Acquisition of
Shoppers Drug Mart Corporation" of the Company's unaudited interim
period condensed consolidated financial statements, included in the
2015 Second Quarter Report to Shareholders.
|
(5)
|
|
The Consumer Price Index for Food Purchased from Stores does not
necessarily reflect the effect of inflation on the specific mix of
goods sold in Loblaw stores.
|
|
|
|
SOURCE George Weston Limited