DIVIDENDS ON PREFERRED SHARES
At its meeting on February 20, 2013, RONA's Board of Directors declared a quarterly dividend of $0.3237 per share on cumulative 5-year rate reset Class A preferred shares, series 6. The dividend will be paid on April 1, 2013 to holders of record on March 15, 2013.
DIVIDENDS ON COMMON SHARES
At its meeting on February 20, 2013, RONA's Board of Directors declared a semi-annual dividend of $0.07 per share on the Corporation's common shares. This dividend will be paid on March 25, 2013 to holders of record on March 11, 2013.
ADDITIONAL INFORMATION
The Management's Discussion and Analysis (MD&A), financial statements and notes for fiscal-year 2012 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.
TELEPHONE CONFERENCE WITH THE FINANCIAL COMMUNITY
On Thursday, February 21, 2013, at 10:00 a.m. (EST), RONA will hold a telephone conference for the financial community. To join the conference, please call 416-340-2216 or 1 866 226-1792. To listen to the call online, please go to http://webcasts.pqm.net/client/rona/event/607/en/.
NON-GAAP PERFORMANCE MEASURES
In this Press Release as in our internal management, RONA uses the concept of "earnings before interest, taxes, depreciation, amortization and non-controlling interests" (EBITDA). RONA also uses the concept of "adjusted gross margin," which corresponds to revenues less the cost of goods sold, plus adjustments for network support.
While EBITDA does not have a definition that is standardized by IFRS, it is widely used in our industry and in financial circles to measure the profitability of operations, excluding tax considerations and the cost and use of capital. Adjusted gross margin is used by RONA's management to analyze the profitability of our network, after adjustments for network support. Given that these measures are not standardized, EBITDA and adjusted gross margin cannot be compared from one company to the next. Still, we establish them in the same way for each of the segments identified, and, unless expressly mentioned, our method does not change over time. EBITDA and adjusted gross margin must not be considered separately or as a substitute for other performance measures calculated according to IFRS, but rather as additional information. Also disclosed as additional information is the impact of unusual items and non-recurring items on 2012 and 2011 results (refer to sections "Unusual items" and "Non-recurring items" in the MD&A for more details).
The following tables show the reconciliation of these two measures:
Reconciliation of non-GAAP measures Fiscal years ended----------------------------------------------------------------------------(Unaudited) (in thousands of dollars, except December 30, December 25, $ change from % change margins in %) 2012 2011 2011 from 2011----------------------------------------------------------------------------Revenues 4,884,016 4,804,584 79,432 1.7%Cost of sales (3,552,340) (3,455,301) (97,039) (2.8%) --------------------------------------------------------Gross profit 1,331,676 1,349,283 (17,607) (1.3%) Gross margin (gross profit/revenues) 27.27% 28.08% -81 b.p.Adjustments for network support(1) 106,331 107,931 (1,600) (1.5%) --------------------------------------------------------Adjusted gross profit 1,438,007 1,457,214 (19,207) (1.3%) Adjusted gross margin (adjusted gross profit/revenues) 29.44% 30.33% -89 b.p.Adjusted gross profit (excluding unusual items) 1,445,514 1,475,879 (30,365) (2.1%) Adjusted gross margin (adjusted gross profit/revenues) (excluding unusual items) 29.60% 30.72% -112 b.p.Adjusted gross profit (excluding unusual items and non-recurring items) 1,448,014 1,475,879 (27,865) (1.9%) Adjusted gross margin (adjusted gross profit/revenues) (excluding unusual items and non-recurring items) 29.65% 30.72% -107 b.p.Adjusted selling, general and administrative expenses (1,275,644) (1,216,659) (58,985) (4.8%)Adjusted selling, general and administrative expenses (excluding unusual items) (1,245,137) (1,206,662) (38,475) (3.2%)Adjusted selling, general and administrative expenses (excluding unusual items and non-recurring items) (1,218,544) (1,206,662) (11,882) (1.0%)Rent (130,740) (134,189) 3,449 2.6%EBITDA before rent 293,103 374,744 (81,641) (21.8%)EBITDA before rent (excluding unusual items) 331,117 403,406 (72,289) (17.9%)EBITDA before rent (excluding unusual items and non- recurring items) 360,210 403,406 (43,196) (10.7%) EBITDA margin before rent (EBITDA before rent/revenues) 6.00% 7.80% -180 b.p. EBITDA margin before rent (EBITDA before rent/revenues, excluding unusual items) 6.78% 8.40% -162 b.p. EBITDA margin before rent (EBITDA before rent/revenues, excluding unusual items and non- recurring items) 7.38% 8.40% -102 b.p.EBITDA 162,363 240,555 (78,192) (32.5%)EBITDA (excluding unusual items) 200,377 269,217 (68,840) (25.6%)EBITDA (excluding unusual items and non-recurring items) 229,470 269,217 (39,747) (14.8%) EBITDA margin (EBITDA/revenues) 3.32% 5.01% -169 b.p. EBITDA margin (EBITDA/revenues, excluding unusual items) 4.10% 5.60% -150 b.p. EBITDA margin (EBITDA/revenues, excluding unusual items and non- recurring items) 4.70% 5.60% -90 b.p.Finance income (5,333) (5,262) (71) (1.3%)Goodwill impairment - (117,000) 117,000 100.0%Amortization, depreciation and impairment of non- financial assets (115,735) (149,736) 34,001 22.7%Amortization, depreciation and impairment of non- financial assets (excluding unusual items) (109,481) (107,055) (2,426) (2.3%)Amortization, depreciation and impairment of non- financial assets (excluding unusual items and non- recurring items) (98,196) (107,055) 8,859 8.3%Operating profit 41,295 (31,443) 72,738 231.3%Operating profit (excluding unusual items) 85,563 156,900 (71,337) (45.5%)Operating profit (excluding unusual items and non- recurring items) 125,941 156,900 (30,959) (19.7%)Net income attributable to participating shares 8,029 (86,367) 94,396 109.3%Net income attributable to participating shares (excluding unusual items) 40,455 86,948 (46,493) (53.5%)Net income attributable to participating shares (excluding unusual items and non-recurring items) 70,032 86,948 (16,916) (19.5%)Diluted net income (loss) per share $ 0.07 (0.66) 0.73 110.6%Diluted net income (loss) per share $ (excluding unusual items) 0.33 0.66 (0.33) (50.0%)Diluted net income (loss) per share $ (excluding unusual items and non- recurring items) 0.57 0.66 (0.09) (13.6%)(1) Corresponds to other costs incurred in bringing the inventory to itspresent location and condition.
