Taking these items into account, RONA's adjusted EBITDA was down $11.2 million. In the distribution segment, the $0.8 million decrease in adjusted EBITDA compared to the same quarter in 2012 stems from the altered mix of distributed products and higher shipping costs. Higher sales helped offset these impacts as well as the difficult market conditions.
Adjusted EBITDA in the retail and commercial segment decreased $10.4 million compared to the first quarter of 2012. The decrease stems from stiffer competition, which exerted downward price pressure in several product categories, as well as a more rapid increase in the cost, versus the selling price, of products such as lumber and building materials. The decrease stems also from sales of lower margin items such as building materials, to the detriment of higher-margin items such as hardware products. Note also that sales volume was down as a result of consumer caution and difficult market conditions.
The total net after-tax amount of the adjustments mentioned earlier was $17.8 million for the first quarter of 2013 or $0.14 per share. The adjusted net loss applicable to participating shares rose from $13.5 million (loss of $0.11 per share) in the first quarter of 2012 to $22.7 million (loss of $0.19 per share) in the first quarter of 2013. This is a decrease of $9.3 million, or $0.08 per share, primarily due to the decrease in adjusted gross margin. Note that the average number of shares outstanding used to calculate the adjusted net loss per share attributable to owners of RONA Inc. fell from 126.7 million shares in the first quarter of 2012 to 121.6 million shares in the first quarter 2013. The decrease stems from share repurchases in the normal course of business.
The Management's Discussion and Analysis (MD&A), financial statements and notes for the first of quarter 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
On Tuesday, May 14, 2013, at 3:00 p.m. (EST), RONA will hold a conference call 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/671/en/.
Non-GAAP Performance Measures
RONA uses non-GAAP measures that are not standardized under International Financial Reporting Standards (IFRS). Management believes that these measures are useful in analyzing the Corporation's operational performance. These performance measures must not be considered separately or as a substitute for other performance measures calculated according to IFRS, but rather as additional information.
EBITDA is defined by the Corporation as net earnings before financial expense, income taxes and the amortization, depreciation and impairment of non-financial assets. This measure is widely used in our industry and in financial circles to measure the profitability of operations. Management also uses same-store sales as a measure, also common in our industry. Same-store sales identify sales growth generated by the network of existing stores and is reduced by the impact of closed stores. It also excluded acquisitions and new stores.
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