Canadian Tire Announces Positive Fourth Quarter and Full Year 2012 Results

  • Consolidated retail sales up 1.4% in Q4; up 10.1% to $12.9 billion for full year 2012

  • Consolidated revenue up 1.0% in Q4; up 10.0% for the full year 2012

  • Consolidated diluted EPS up 2.8% and 12.9% for Q4 and full year respectively excluding one-time charges and including FGL Sports results for full year 2012 compared to 19 weeks in 2011

TORONTO, Feb. 21, 2013 /CNW/ - Canadian Tire Corporation, Limited (TSX:CTC, TSX:CTC.a) today released fourth quarter and full year results for the period ended December 29, 2012.

FOURTH QUARTER

Consolidated retail sales in the fourth quarter increased 1.4% and consolidated revenue increased 1.0% to $3.2 billion for the period. Diluted earnings per share declined 1.8% in the fourth quarter compared to the prior year. Included in net income were costs related to corporate restructuring and tax adjustments that occurred during the fourth quarter of 2012, amounts related to the purchase of FGL Sports and income received from the resolution of tax matters in 2011.  Excluding these items, diluted earnings per share increased 2.8% in Q4 2012.

FULL YEAR

Consolidated retail sales for the full year increased 10.1% to $12.9 billion reflecting the full year impact of FGL Sports retail sales compared to 19 weeks in 2011 and consolidated revenue increased 10.0% to $11.4 billion. Diluted earnings per share for the year increased 6.9% to $6.10. Normalizing for the restructuring charges and FGL Sports banner rationalization costs in 2012 and amounts related to the purchase of FGL Sports and income received from the resolution of tax matters in 2011, diluted earnings per share were up 12.9%.

"Overall, our Family of Companies has performed exceptionally well for the year and we generated nearly $13 billion in revenue, which is 10 percent higher than last year," said Stephen Wetmore, President and Chief Executive Officer, Canadian Tire Corp. "The acquisition of FGL Sports has been a remarkable success.  Our Sport Chek and Sports Experts "super brands" achieved strong sales growth and we started to implement ambitious growth plans in 2012 that will fuel future growth."

"Canadian Tire Retail also had a solid year," he said.  "In 2012, we focused on improving our margins, introduced new products, executed successfully in key heritage categories, retrofitted over 70 more Smart store formats and have strengthened our position as Canada's Store."

"Mark's continues to be one of Canada's market leaders in apparel and footwear as we converted dozens more stores to our new store format in 2012. Financial Services once again performed well through the strong management of its credit card portfolio as well as new initiatives such as the Canadian Tire Driver's Academy and a new Sport Chek MasterCard," Wetmore said.

"Our brands continue to gain strength through community involvement across the country and our recently announced partnerships with the Canadian Olympic team, Paralympic team and five other major amateur sports organizations.  Combined with the tremendous work of Canadian Tire Jumpstart Charities, our Family of Companies is setting the standard for involvement in, and commitment to, local communities and everyday life in Canada."

Consolidated financial results                                  
(C$ in millions except per share amounts)   Q4 2012     Q4 2011     Change     YTD Q4 2012     YTD Q4 2011     Change
Retail sales $   3,780.5   $   3,727.2     1.4%   $ 12,852.5   $ 11,668.3     10.1%
Revenue     3,166.7     3,135.1     1.0%     11,427.2     10,387.1     10.0%
Net income   163.1     166.3     (1.9)%     499.2     467.0     6.9%
Basic earnings per share   2.00     2.04     (1.9)%     6.13     5.73     6.9%
Diluted earnings per share   2.00     2.03     (1.8)%     6.10     5.71     6.9%

 

RETAIL SEGMENT

Consolidated retail sales rose 1.4% in the quarter to $3.8 billion versus Q4 2011.  For the year, consolidated retail sales rose 10.1% versus 2011 to $12.9 billion.

CTR achieved strong sales performance in the quarter in key categories such as kitchen and outdoor recreation.  These gains were offset by the impact of the late arrival of winter weather in Ontario and Quebec and by management's actions to improve gross margin by more selectively promoting certain merchandise categories.  The result was a slight 0.5% decrease in sales at CTR with stronger gross margins.

FGL Sports' fourth quarter retail sales increased 4.5% and same store sales at its Sport Chek "super brand" increased 3.8% over the same period contributing to its 6.8% growth for the full year due to strong performance in hard goods, apparel and footwear.  This was offset by the impact of the NHL lockout and the late arrival of winter weather, particularly in Ontario and Quebec.

At Mark's, retail sales grew 3.7% and same store sales increased 3.5% in the fourth quarter due to growth in industrial wear and footwear sales.  Sales gains were highest in Western Canada, particularly Alberta, benefitting from the early start to winter weather in October in that province.

Petroleum retail sales increased 5.0% primarily due to strong convenience store sales and increased gas volume due to additional sites being opened during the year.

Revenue in the retail segment increased 0.9% in the quarter primarily due to revenue increases in FGL Sports, Petroleum and Mark's, partly offset by a decrease in CTR revenue for the reasons noted above.

Retail segment fourth quarter income before income taxes of $154.9 million was down 11.6% compared to the prior year. The earnings decline was largely reflective of the restructuring charge of $19.6 million and modest revenue growth which were partially offset by higher marketing and occupancy expenses.

FINANCIAL SERVICES SEGMENT

Financial Services was a strong contributor to the Company's earnings in the fourth quarter. Financial Services' revenue increased 1.8% and income before income taxes increased 10.8% in the quarter compared to the prior year. The earnings increase was due to increased revenue related to credit card receivables growth and improved write-off performance, offset by slightly higher operating expenses compared to the prior year.

QUARTERLY DIVIDEND

Canadian Tire Corporation has declared a quarterly dividend of $0.35 per share on each Common and Class A Non-Voting share. The dividend is payable on June 1, 2013 to Common and Class A shareholders of record as of April 30, 2013. The dividend is considered an "eligible dividend" for tax purposes.

The Company's full year financial report will be available in the Investor Centre section of the Company's website at corp.canadiantire.ca and will be filed with SEDAR and available at sedar.com.

Please refer to Management's Discussion and Analysis for further detail and information on the following charts.

Consolidated financial results                    
(C$ in millions except per share amounts)     Q4 2012     Q4 2011     Change     YTD Q4 2012     YTD Q4 2011     Change
Retail sales   $ 3,780.5   $   3,727.2     1.4%   $ 12,852.5   $ 11,668.3     10.1%
Revenue       3,166.7     3,135.1     1.0%     11,427.2     10,387.1     10.0%
Gross margin     994.4     938.8     5.9%     3,497.9     3,060.7     14.3%
Other (expense) income       5.2     5.8     (10.3)%     5.7     18.4     (69.1)%
Operating expenses      749.6     680.8     10.1%     2,700.2     2,317.0     16.5%
EBITDA       337.8     350.4     (3.6)%     1,138.5     1,058.2     7.6%
Depreciation and amortization     87.8     86.6     1.4%     335.1     296.1     13.2%
Net finance costs     33.4     32.9     1.2%     126.2     132.2     (4.6)%
Income before income taxes     216.6     230.9     (6.2)%     677.2     629.9     7.5%
Effective tax rate       24.7%     28.0%           26.3%     25.9%      
Net income       163.1     166.3     (1.9)%     499.2     467.0     6.9%
                                       
Basic earnings per share     2.00     2.04     (1.9)%     6.13     5.73     6.9%
Diluted earnings per share     2.00     2.03     (1.8)%     6.10     5.71     6.9%
                                     
                                     
Retail segment financial results                              
(C$ in millions)     Q4 2012     Q4 2011     Change     YTD Q4 2012     YTD Q4 2011     Change
Retail sales   $   3,780.5   $ 3,727.2     1.4%   $ 12,852.5   $ 11,668.3     10.1%
Revenue        2,901.1     2,874.9     0.9%     10,381.2     9,363.5     10.9%
Gross margin      826.9     783.9     5.5%     2,835.3     2,446.7     15.9%
Other income (expense)     5.0     5.9     (14.9)%     3.0     18.8     (84.3)%
Operating expenses     658.2     595.1     10.6%     2,364.8     1,982.0     19.3%
EBITDA       258.9     278.6     (7.1)%     798.7     768.9     3.9%
Depreciation and amortization     85.2     83.9     1.5%     325.2     285.4     13.9%
Net finance costs     18.8     19.5     (4.0)%     73.2     72.7     0.7%
Income before income taxes     154.9     175.2     (11.6)%     400.3     410.8     (2.6)%
                                     
                                     
Retail Segment - by banner                                    
(C$ in millions, except number of stores and gas bars)     Q4 2012     Q4 2011     Change     YTD Q4 2012     YTD Q4 2011     Change
CTR retail sales growth     (0.5)%     2.6%           0.8%     2.0%      
CTR same store sales growth     (1.1)%     1.7%           0.3%     1.1%      
CTR revenue   $ 1,548.2   $ 1,573.6     (1.6)%   $ 5,779.7   $ 5,771.5     0.1%
Number of CTR stores     490     488           490     488      
                                       
Canadian Tire Petroleum retail sales growth     5.0%     10.3%           4.0%     19.0%      
Canadian Tire Petroleum gasoline volume (litres) growth     2.7%     (1.4)%           1.3%     2.1%      
Canadian Tire Petroleum revenue   $ 509.8   $ 490.9     3.8%   $ 2,049.6   $ 1,981.2     3.5%
Canadian Tire Petroleum gross margin   $ 35.8   $ 36.0     (0.8)%   $ 145.6   $ 146.8     (0.8)%
Number of gas bars     299     289           299     289      
                                       
FGL Sports retail sales growth     4.5%     0.6%           4.1%     2.3%      
FGL Sports same store sales growth     2.9%     0.7%           4.9%     2.6%      
FGL Sports revenue   $ 444.2   $ 426.1     4.3%   $ 1,550.3   $ 645.6     140.1%
Number of FGL Sports stores     495     534           495     534      
                                       
Mark's retail sales growth     3.7%     3.2%           4.2%     3.0%      
Mark's same store sales growth     3.5%     3.1%           3.7%     2.8%      
Mark's revenue   $ 402.5   $ 388.0     3.7%   $ 1,016.6   $ 979.5     3.8%
Number of Mark's stores     386     385           386     385      
                                       
                                     
Financial Services segment financial results                        
(C$ in millions)     Q4 2012     Q4 2011     Change     YTD Q4 2012     YTD Q4 2011     Change
Total gross average accounts receivables     $ 4,209.6   $ 4,062.1     3.6%   $ 4,096.0   $ 4,035.5     1.5%
Revenue       248.0     243.5     1.8%     981.9     960.4     2.2%
Gross margin     132.4     122.2     8.2%     536.6     482.0     11.3%
Operating expenses     71.4     67.1     6.2%     263.6     264.7     (0.4)%
Income before income taxes     61.7     55.7     10.8%     276.9     219.1     26.4%

 

THE YEAR AHEAD

At the beginning of 2013, the CTC Family of Companies is extremely well-positioned in the competitive marketplace as a result of successful planning and execution in the following areas:

  • Strong financial position and free cash flow; continued control over operating expenditures and margin growth across all retail banners.

  • "Next in class" technology investments including touch-enabled and near-field communication screens in stores, new and robust e-commerce platform and e-catalogue at Canadian Tire Retail and investments in 'smart commerce' across the entire Company.

  • Expanded roll out of new 'Living' and outdoor and sports 'pro shops' in Canadian Tire stores featuring expanded assortments, stunning in-store displays and an exciting customer experience.

  • Growth focus for CTR's 'Fixing' business following investments in our 'Automotive' and 'Playing' businesses.

  • Implementation of FGL Sports' growth strategy, including the expansion of Sport Chek stores, rollout of "retail lab" locations and addition of hundreds of thousands more square feet of new retail space in 2013.

  • The pending acquisition of Pro Hockey Life, which would strengthen CTC's leadership position in sports and broaden its offering in hockey.

  • Continued rebranding and new store layout at 44 additional Mark's stores in 2013.

  • Deeper integration of the Financial Services business into retail operations through new credit products, in-store instant credit, equal payment plans and deferred payments on large purchases.

  • Activating iconic partnerships with the Canadian Olympic and Paralympic teams and major amateur and pro athlete organizations to enhance the brand and embrace the 'power of sport' in Canadian communities.

NORMAL COURSE ISSUER BID 

Canadian Tire also announced that it intends to make a normal course issuer bid (NCIB) to purchase from February 26, 2013 to February 25, 2014, through the facilities of the Toronto Stock Exchange (TSX), certain of its outstanding Class A Non-Voting Shares. As at February 20, 2013 there were 77,720,401 Class A Non-Voting Shares issued and outstanding. The number of Class A Non-Voting Shares which may be purchased during the period the NCIB is outstanding will not exceed 2.5 million Class A Non-Voting Shares, which is approximately 3.4% of 74.1 million shares, the approximate public float of Class A Non-Voting Shares issued and outstanding as at February 20, 2013. 

Canadian Tire has a policy of purchasing Class A Non-Voting Shares to offset the dilutive effect of the issuance of Class A Non-Voting Shares pursuant to its stock option plan and dividend reinvestment plan.  Canadian Tire intends to continue that policy. Canadian Tire also would expect to utilize a minimum of $100 million of its anticipated free cash flow in 2013 for the repurchase of additional Class A Non-Voting Shares under the NCIB if, after consideration of various factors, the Company determines that the repurchase would be expected to be in the best interests of the Company and contribute to enhancing the value of the remaining Class A Non-Voting Shares.  The Company will not repurchase more than 2.5 million Class A Non-Voting Shares, in aggregate, in 2013 pursuant to the NCIB. 

The number of Class A Non-Voting Shares purchased by Canadian Tire pursuant to its NCIB which commenced on February 19, 2012 and expired on February 18, 2013, was 483,354. This figure includes 299,806 Class A Non-Voting Shares that were purchased beyond the Corporation's anti-dilutive policy during the fourth quarter of 2012.  The weighted average price at which the purchases under the 2012 NCIB were made was $68.55 per Class A Non-Voting Share. 

Any purchases made by Canadian Tire pursuant to the NCIB will be made in accordance with the rules of the TSX and at the market price of the Class A Non-Voting Shares at the time of the acquisition. No purchases (other than by way of exempt offers, exemption orders or otherwise in accordance with applicable regulations of the TSX) will be made except through open market transactions during the period the NCIB is outstanding. Subject to any block purchases made in accordance with the rules of the TSX, Canadian Tire will be subject to a daily repurchase restriction of 49,218 Class A Non-Voting Shares, which represents 25% of the average daily trading volume of the Class A Non-Voting Shares on the TSX for the six months ended January 31, 2013. The Class A Non-Voting Shares acquired by Canadian Tire pursuant to the NCIB will be restored to the status of authorized and unissued shares. 

Canadian Tire's NCIB is subject to regulatory approval. 

To view a PDF version of Canadian Tire Corporation's 2012 Management Discussion & Analysis and Annual Consolidated Audited Financial Statements, please see: http://files.newswire.ca/116/CTC_MDA0221.pdf

FORWARD-LOOKING STATEMENTS

This document contains forward-looking information that reflects management's current expectations related to matters such as future financial performance and operating results of the Company. Forward-looking statements are provided for the purposes of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our financial position, results of operation and operating environment. Readers are cautioned that such information may not be appropriate for other circumstances.

All statements other than statements of historical facts included in this document may constitute forward-looking information, including but not limited to, statements concerning management's expectations relating to possible or assumed future prospects and results, our strategic goals and priorities, our actions and the results of those actions and the economic and business outlook for us. Often but not always, forward-looking information can be identified by the use of forward-looking terminology such as "may", "will", "expect", "believe", "estimate", "plan", "could", "should", "would", "outlook", "forecast", "anticipate", "foresee", "continue" or the negative of these terms or variations of them or similar terminology. Forward-looking information is based on the reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable at the date that such statements are made.

By its very nature, forward-looking information requires us to make assumptions and is subject to inherent risks and uncertainties, which give rise to the possibility that the Company's assumptions may not be correct and that the Company's expectations and plans will not be achieved. Although the Company believes that the forward-looking information in this document is based on information and assumptions which are current, reasonable and complete, this information is necessarily subject to a number of factors that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking information for a variety of reasons. Some of the factors - many of which are beyond our control and the effects of which can be difficult to predict - include (a) credit, market, currency, operational, liquidity and funding risks, including changes in economic conditions, interest rates or tax rates; (b) the ability of Canadian Tire to attract and retain quality employees, Dealers, Canadian Tire Petroleum agents and PartSource, Mark's Work Wearhouse and FGL Sports store operators and franchisees, as well as our financial arrangements with such parties; (c) the growth of certain business categories and market segments and the willingness of customers to shop at our stores or acquire our financial products and services; (d) our margins and sales and those of our competitors; (e) risks and uncertainties relating to information management, technology, supply chain, product safety, changes in law, regulation, competition, seasonality, commodity price and business disruption, our relationships with suppliers and manufacturers, changes to existing accounting pronouncements, the risk of damage to the reputation of brands promoted by Canadian Tire and the cost of store network expansion and retrofits and (f) our capital structure, funding strategy, cost management programs and share price. We caution that the foregoing list of important factors and assumptions is not exhaustive and other factors could also adversely affect our results. Investors and other readers are urged to consider the foregoing risks, uncertainties, factors and assumptions carefully in evaluating the forward-looking information and are cautioned not to place undue reliance on such forward-looking information.

For more information on the risks, uncertainties and assumptions that could cause the Company's actual results to differ from current expectations, please refer to the "Risk Factors" section of our Annual Information Form for fiscal 2012 and our 2012 Management's Discussion and Analysis, as well as Canadian Tire's other public filings, available at www.sedar.com and at www.corp.canadiantire.ca.

Statements that include forward-looking information do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made have on the Company's business. For example, they do not include the effect of any dispositions, acquisitions, asset write-downs or other charges announced or occurring after such statements are made.

The forward-looking statements and information contained herein are based on certain factors and assumptions as of the date hereof. The Company does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, unless required by applicable securities laws.

CONFERENCE CALL

Canadian Tire will conduct a conference call to discuss information included in this news release and related matters at 4:30 p.m. ET on February 21, 2013. The conference call will be available simultaneously and in its entirety to all interested investors and the news media through a webcast at http://investors.canadiantire.ca, and will be available through replay at this website for 12 months.

ABOUT CANADIAN TIRE

Canadian Tire Corporation, Limited (TSX:CTC.a) (TSX:CTC) is a Family of Companies that includes Canadian Tire Retail, Partsource, Gas+, FGL Sports (Sport Chek, Hockey Experts, Sports Experts, National Sports, Intersport and Atmosphere), Mark's and Canadian Tire Financial Services.  With more than 1,700 retail and gasoline outlets from coast-to-coast, our primary retail business categories - Automotive, Living, Fixing, Playing and Apparel - are supported and strengthened by our Financial Services division. Nearly 68,000 people are employed across the Canadian Tire enterprise, which was founded in 1922 and remains one of Canada's most recognized and trusted brands. For more information, visit Corp.CanadianTire.ca.

CANADIAN TIRE CORPORATION, LIMITED

UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Q4 2012

 

Condensed Consolidated Balance Sheets (Unaudited)          
As at                 
(C$ in millions)       December 29, 2012       December 31, 2011
                 
ASSETS                
Cash and cash equivalents      $ 1,015.5     $ 325.8
Short-term investments       168.9       196.4
Trade and other receivables       750.6       829.3
Loans receivable       4,265.7       4,081.7
Merchandise inventories       1,503.3       1,448.6
Prepaid expenses and deposits       39.1       44.3
Assets classified as held for sale       5.5       30.5
Total current assets       7,748.6       6,956.6
Long-term receivables and other assets       681.2       668.9
Long-term investments       182.7       128.2
Goodwill and intangible assets       1,089.9       1,110.0
Investment property       95.1       72.4
Property and equipment       3,343.5       3,365.9
Deferred income taxes       40.4       36.8
Total assets     $ 13,181.4     $ 12,338.8
                 
LIABILITIES                
Bank indebtedness     $ 86.0     $ 124.8
Deposits       1,311.0       1,182.3
Trade and other payables       1,631.3       1,640.9
Provisions       185.8       191.9
Short-term borrowings       118.9       352.6
Loans payable       623.7       628.7
Income taxes payable       5.5       3.9
Current portion of long-term debt       661.9       27.9
Total current liabilities       4,624.1       4,153.0
Long-term provisions       54.8       55.1
Long-term debt       2,336.0       2,347.7
Long-term deposits       1,111.8       1,102.2
Deferred income taxes       77.7       66.1
Other long-term liabilities       213.4       205.7
Total liabilities       8,417.8       7,929.8
                 
SHAREHOLDERS' EQUITY                
Share capital       688.0       710.5
Contributed surplus       2.9       1.1
Accumulated other comprehensive income (loss)        (1.7)       11.0
Retained earnings       4,074.4       3,686.4
Total shareholders' equity       4,763.6       4,409.0
Total liabilities and shareholders' equity     $ 13,181.4     $ 12,338.8

 

 
 
Condensed Consolidated Statements of Income (Unaudited)                              
               
      13 weeks ended       52 weeks ended        
(C$ in millions, except per share amounts)     December 29, 2012       December 31, 2011       December 29, 2012       December 31, 2011
              (Note 1)               (Note 1)
Revenue   $ 3,166.7     $ 3,135.1     $ 11,427.2     $ 10,387.1
Cost of producing revenue     (2,172.3)       (2,196.3)       (7,929.3)       (7,326.4)
                               
Gross margin     994.4       938.8       3,497.9       3,060.7
                               
Other income      5.2       5.8       5.7       18.4
                               
Operating expenses                               
  Distribution costs     (88.4)       (98.9)       (356.2)       (368.7)
  Sales and marketing expenses     (461.6)       (415.4)       (1,636.4)       (1,307.9)
  Administrative expenses     (199.6)       (166.5)       (707.6)       (640.4)
Total operating expenses     (749.6)       (680.8)       (2,700.2)       (2,317.0)
                               
Operating income     250.0       263.8       803.4       762.1
                               
  Finance income     5.1       4.6       18.1       23.0
  Finance costs     (38.5)       (37.5)       (144.3)       (155.2)
Net finance costs     (33.4)       (32.9)       (126.2)       (132.2)
Income before income taxes     216.6       230.9       677.2       629.9
                               
Income taxes     (53.5)       (64.6)       (178.0)       (162.9)
Net income   $ 163.1     $ 166.3     $ 499.2     $ 467.0
Basic earnings per share   $ 2.00     $ 2.04     $ 6.13     $ 5.73
Diluted earnings per share   $ 2.00     $ 2.03     $ 6.10     $ 5.71
Weighted average number of Common and Class A Non-Voting Shares outstanding:                              
  Basic     81,394,420       81,444,555       81,435,218       81,447,398
  Diluted     81,725,054       81,804,155       81,805,594       81,803,786

 

Note 1
Certain of the prior period's figures have been reclassified to correspond to the current year-presentation.  Certain employee benefits costs previously included in administrative expenses are now presented in distribution costs and sales and marketing expenses within operating expenses.  For the 13 weeks ended December 31, 2011, administrative expenses have been reduced by $13.9 million, with a corresponding increase in distribution costs and sales and marketing expenses of $9.1 million and $4.8 million, respectively.  For the 52 weeks ended December 31, 2011, administrative expenses have been reduced by $61.1 million, with a corresponding increase in distribution costs and sales and marketing expenses of $39.5 million and $21.6 million, respectively.  There is no impact on net income as a result of this change in presentation.

 
Condensed Consolidated Statements of Cash Flows (Unaudited)                
               
      13 weeks ended        52 weeks ended   
(C$ in millions)     December 29, 2012       December 31, 2011       December 29, 2012       December 31, 2011
              (Note 2)               (Note 2)
Cash generated from (used for):                              
                               
Operating activities                              
  Net income   $ 163.1     $ 166.3     $ 499.2     $ 467.0
  Adjustments for:                              
    Gross impairment loss on loans receivable      82.0       88.7       323.7       352.0
    Depreciation on property and equipment and investment property     66.1       66.3       248.9       229.8
    Income tax expense     53.5       64.6       178.0       162.9
    Net finance costs     33.4       32.9       126.2       132.2
    Amortization of intangible assets     21.7       20.3       86.2       66.3
    Changes in fair value of derivative instruments     (2.4)       (28.3)       (7.7)       (3.1)
    Deferred income taxes     (3.8)       (10.0)       16.5       (6.4)
    Other     2.4       0.5       13.7       9.8
    Gain on revaluation of shares     -       -       -       (10.4)
      416.0       401.3       1,484.7       1,400.1
  Changes in working capital and other     102.4       164.8       (434.0)       219.6
Cash generated from operating activities before interest and income taxes     518.4       566.1       1,050.7       1,619.7
  Interest paid     (41.0)       (47.4)       (155.3)       (176.6)
  Interest received     3.0       2.4       8.9       26.1
  Income taxes paid     (49.0)       18.3       (161.3)       (63.7)
Cash generated from operating activities     431.4       539.4       743.0       1,405.5
                               
Investing activities                              
  Acquisition of FGL Sports     -       -       -       (739.9)
  Acquisition of short-term investments     (46.2)       (29.7)       (264.0)       (334.8)
  Acquisition of long-term investments     (25.6)       -       (130.0)       (123.1)
  Additions to property and equipment and investment property     (62.8)       (79.2)       (222.3)       (230.5)
  Additions to intangible assets     (20.8)       (31.3)       (64.3)       (128.9)
  Long-term receivables and other assets     25.2       2.8       17.6       (3.2)
  Proceeds from the disposition of long-term investments     -       -       4.7       18.1
  Proceeds from the maturity and disposition of short-term investments     129.1       39.4       360.7       364.0
  Proceeds on disposition of property and equipment, investment property and assets held for sale     24.3       11.5       45.0       21.0
  Other     -       (3.5)       (8.9)       (4.1)
Cash generated from (used for) investing activities     23.2       (90.0)       (261.5)       (1,161.4)
                               
Financing activities                              
  Net (repayment) issuance of short-term borrowings     (14.6)       (233.5)       (233.7)       10.1
  Issuance of loans payable     58.9       32.9       235.3       129.3
  Repayment of loans payable     (85.4)       (62.4)       (240.3)       (187.6)
  Issuance of share capital     1.1       1.1       12.4       11.6
  Repurchase of share capital      (21.9)       (1.2)       (33.1)       (11.9)
  Issuance of long-term debt     423.2       -       637.4       -
  Repayment of long-term debt and finance lease liabilities     (8.3)       (336.6)       (30.1)       (355.6)
  Dividends paid     (24.4)       (22.4)       (97.7)       (89.6)
  Payment of transaction costs related to long-term debt     (2.0)       -       (3.2)       -
Cash generated from (used for) financing activities     326.6       (622.1)       247.0       (493.7)
                               
Cash generated (used) in the period     781.2       (172.7)       728.5       (249.6)
Cash and cash equivalents, net of bank indebtedness, beginning of period     148.4       373.4       201.0       450.9
Effect of exchange rate fluctuations on cash held     (0.1)       0.3       -       (0.3)
Cash and cash equivalents, net of bank indebtedness, end of period    $ 929.5     $ 201.0     $ 929.5     $ 201.0

Note 2
Certain of the prior period's figures have been reclassified to correspond to the current-year presentation.  Issuance/repayment of short-term borrowings, which were previously shown separately, are presented as net (repayment) issuance of short-term borrowings in financing activities.  There is no impact on cash used for financing activities as a result of this change in presentation. 

 

 

SOURCE CANADIAN TIRE CORPORATION, LIMITED

PDF available at: http://stream1.newswire.ca/media/2013/02/21/20130221_C7364_DOC_EN_23942.pdf



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