BOUCHERVILLE, QUEBEC -- (Marketwired) -- 05/14/13 -- RONA Inc. (TSX: RON)(TSX: RON.PR.A), the largest Canadian distributor and retailer of hardware, renovation and gardening products, announced its operating results for the 13-week period ending March 31, 2013, along with a follow-up on its main achievements during the quarter. All figures in this release are in Canadian dollars and presented according to IFRS accounting standards.
First quarter 2013 highlights
-- Revenues of $929.4 million, down $4.6 million (or 0.5%) compared to the first quarter of 2012. Revenues were up $18.2 million in the distribution segment and down $22.8 million in the retail and commercial segment.-- Adjustments of $17.8 million after tax, or $0.14 per share, reflecting restructuring expenses and the cost of implementing strategic priorities.-- The disruption in operations related to the repositioning of the Reno- Depot and TOTEM banners, the more rapid increase in the cost versus the selling price of lumber and certain building materials, difficult market conditions and the late spring mostly explain the adjusted net loss of $0.19 per share compared to an adjusted net loss of $0.11 per share in the first quarter of 2012.-- Main achievements with respect to strategic priorities: -- Annualized reduction in administrative expense of $17 million due to the workforce reduction plan and renegotiation of major sourcing agreements. -- Continued repositioning of the Reno-Depot banner in Quebec and integration of TOTEM in Alberta. -- Decision to keep the big-box store network outside Quebec. A recovery plan will be announced next quarter.
RONA's revenues were down 0.5% and same-store sales down 0.8% in the first quarter of 2013, compared to the first quarter of 2012. Same-store sales were up 9.5% in the distribution segment and down 3.0% in the retail and commercial segment. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were down $0.8 million in the distribution segment and $10.4 million in the retail and commercial segment, for a total decrease of $11.2 million. The adjusted net loss applicable to participating shares was $22.7 million (loss of $0.19 per share), a decrease of $0.08 per share compared to 2012.
"2013 is clearly a transition year for RONA and further changes will be required to allow us to return to sustained growth in net income. The first quarter results are still under pressure, given the current banner repositioning and the weak Canadian housing market. The challenges are significant, but the focus on our strategic and financial priorities will ensure our success," said Dominique Boies, Executive Vice President and Chief Financial Officer.
After just a few weeks at the helm of the Corporation, Robert Sawyer, President and Chief Executive Officer, believes that RONA has all the ingredients needed to improve its performance. "We have skilled and motivated employees, dynamic dealer-owners and business partners, a brand that is known from coast to coast and a network of stores in a variety of sizes that permits us to reach Canadians in their communities," he said.