BOUCHERVILLE, QUEBEC--(Marketwired - Feb. 18, 2014) - RONA inc.(TSX:RON)(TSX:RON.PR.A) ("RONA" or the "Corporation") announces the results for its continuing operations for the 13- and 52-week periods ended December 29, 2013, and the achievements of its recovery plan. All figures in this release are in Canadian dollars. Note that comparison fiscal year and fourth quarter ending December 30, 2012had an additional week of business operations. Fiscal year 2013 highlights -- Annualized cost savings of $110 millionachieved within the announced time frame. -- Revenues from continuing operations of $4,192.2 million, compared to $4,444.2 millionin 2012. Same-store sales down 1.9%. -- Adjusted net income from continuing operations attributable to participating shares of $49.9 million, or $0.41per share in 2013, versus $73.5 million, or $0.60per share in 2012. -- Solid financial situation with usage at year-end of only $45.0 millionon credit facilities of $700 million, compared to usage of $171.9 millionin 2012.
Fourth quarter 2013 highlights
-- Closing for
$214 millionof the disposal of the assets of the Commercial and Professional Market division. -- Revenues from continuing operations of $941.1 million, compared to $1,071.5 millionin 2012. Same-store sales down 3.5%. -- Adjusted net income from continuing operations attributable to participating shares of $4.6 million, or $0.04per share in 2013, versus $6.4 million, or $0.05per share in 2012. -- Repurchase of 1,177,300 common shares in the normal course of business for a consideration of $15.4 million.
"Fiscal 2013 was a year of profound organizational change at RONA, against the backdrop of a difficult market context for our industry. Although consolidated results are down, we are satisfied with the progress made in the implementation of the restructuring measures and the team reorganizations. We are particularly proud to have achieved our primary objective of
"In 2014, we will focus on deploying the new positioning of some banners and stabilizing our profit margins after having revised the pricing strategy and disposed of some excess inventory in 2013. Most importantly, we will concentrate on meeting the needs of our target customers so that we can increase our market share in an industry that is experiencing a cyclical slowdown," added
. ---------------------------------------------------------------------------- FINANCIAL HIGHLIGHTS Fourth quarters ending Fiscal years ending (for continuing operations in Dec. 29, Dec.30, Dec. 29, Dec. 30, millions of dollars, except 2013 2012 2013 2012 per share data) (13 weeks) (14 weeks) (52 weeks) (53 weeks) ---------------------------------------------------------------------------- Revenues 941.1 1,071.5 4,192.2 4,444.2 EBITDA 30.0 19.4 79.2 151.4 Adjusted EBITDA (1) 36.1 39.4 185.1 217.5 Net income (loss) attributable to participating shares (1.1) (17.3) (45.9) 12.3 Per share - basic and diluted ($) (0.01) (0.14) (0.38) 0.10 Adjusted net income attributable to participating shares (1) 4.6 6.4 49.9 73.5 Per share - basic and diluted ($) 0.04 0.05 0.41 0.60 Weighted average number of shares outstanding (in thousands) 121,693 121,405 121,779 122,932 ---------------------------------------------------------------------------- (1) See Non-GAAP Performance Measures below
Fiscal 2013 results
Consolidated revenues from continuing operations for fiscal 2013 stood at
Adjusted EBITDA from continuing operations totalled
On an adjusted basis, the recovery plan including the effect of the additional week of activity in 2012, resulted in a reduction of selling, general and administrative expenses by
Net loss attributable to participating shares was
Fourth quarter results
For the 13-week period ending
Adjusted EBITDA from continuing operations amounted to
Net loss attributable to participating shares was
Solid financial situation
In the fourth quarter, the Corporation concluded the sale of its Commercial and Professional Market division. The
Under its normal course issuer bid initiated on
Dividend on preferred shares
At its meeting on
Dividend on common shares
At its meeting on
The Management's Discussion and Analysis (MD&A), financial statements and notes for fiscal 2013 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
A replay of the call will be available as of
NON-GAAP PERFORMANCE MEASURES
RONA uses non-GAAP performance measures which are not defined by International Financial Reporting Standards ("IFRS"). Management is of the view 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 according to 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 our industry and 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 removes the effect of acquisitions, store closures and openings.
Management also uses the following non-GAAP measures: adjusted EBITDA, adjusted gross margin, adjusted selling, general and administrative expenses, adjusted amortization, depreciation and impairment of non-financial assets, adjusted finance costs, adjusted net income attributable to participating shares and adjusted diluted net income per share attributable to owners of
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 www.sedar.com and www.rona.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
FOR FURTHER INFORMATION PLEASE CONTACT: Media
Valerie Gonzalo514-626-6976 firstname.lastname@example.org Financial Community Stephane MilotVice President, Finance and Investor Relations 514-599-5951 email@example.com Source: RONA INC.