Mr. Boies added: "Dedicated teams are currently executing or planning the various initiatives to drive short-term and longer term results. Short-term actions to redefine the support functions and operating model will result in $35-45 million of expected EBITDA improvement. These benefits and freed up capital from non-core assets will be re-invested in our core businesses in order to deliver the industry leading offering that our customers and dealers have come to expect from us. Leverage from positive same-store sales, in a more constructive economic environment would enhance the positive impact of those initiatives."
The 2013-2015 transformational plan - Progress to date
1. Adapt our administrative support and process model to a leaner and more efficient organization -- Direct and indirect detailed SG&A reduction program ready to be deployed; -- Detailed transition plan developed for 200 employees affected by the reorganisation of our administrative support functions.2. Execute rapidly the plan for enhanced customer experience and improved performance -- With the help of outside industry specialists, specific initiatives developed to revamp merchandising program and optimise pricing strategy in order to regain profitable market share in core businesses; -- Further workstreams in progress to improve in-store operations, IT and supply-chain effectiveness.3. Optimize/rationalize non-core and underperforming assets -- With the help of outside advisors, strategic options evaluated including sale of some assets, partnership with strategic player, rationalization/closing or optimisation of some stores/facilities.4. Strengthen, leverage and grow our core markets where profitability is already strong -- Plan to improve dialogue and support to franchised and affiliated dealers; -- Repositioning of the TOTEM banner into RONA's new proximity model well underway; -- Redefinition of the Reno-Depot banner proposition to offer best value for the professional contractor and expert Do-it-Yourself buyers (DIY) in progress.
The different initiatives of RONA's 2013-2015 transformational plan are perfectly aligned with the Corporation's strategic and financial priorities. Similar to the practice adopted for the disclosure of its financial priorities, RONA will provide quarterly updates on specific ongoing initiatives and achievements. Key performance indicators will be provided and reported on for several of the initiatives included in the transformational plan as implemented.
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 also 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 February 21, 2013, 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.
RONA is the largest Canadian distributor and retailer of hardware, home renovation and gardening products. The Corporation operates a network of over 800 corporate, franchise and affiliate retail stores of various sizes and formats under different banners, and a network of 14 hardware and construction materials distribution centres. RONA is also a leader in the specialized plumbing and HVAC market, primarily serving commercial and professional customers with a network of close to 60 sales outlets and four distribution centres across the country. With close to 30,000 employees, the RONA store network generates consolidated sales of $4.9 billion. For more information, please visit www.rona.ca.
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