MONTRÉAL, Feb. 2, 2016 /PRNewswire/ - Dollarama Inc. (TSX: DOL) ("Dollarama" or the "Corporation") announced today that its Board of Directors approved an investment of approximately $60 million in the construction of a new warehouse in Montreal, Quebec.
The new 500,000 square-foot warehouse will be located in the Lachine borough near the intersection of highways 13 and 520, in close proximity to Dollarama's existing, centralized warehousing and distribution operations. The new facility will increase Dollarama's total warehousing capacity by approximately 40% on a square footage basis, thereby accommodating capacity requirements as the Corporation continues to expand its store network.
Given Dollarama's strong free cash flows, well in excess of the cost of the project, Dollarama has opted to own the facility instead of leasing it from a third party. The land, comprised of two contiguous properties, is being acquired from a party related to Dollarama, at the same price paid by such party in an arm's length transaction.
As a result of this investment, capital expenditures guidance for the fiscal year ending January 29, 2017 has been revised from a range of $100 million to $110 million to a range of $160 million to $170 million. The increase accounts for land and building costs as well as professional fees, but excludes some equipment costs which had already been factored into the initial forecast.
Construction is scheduled to begin in early spring, with completion expected towards the end of 2016.
Dollarama is Canada's leading dollar store operator with 1,005 locations across the country. Our stores provide customers with compelling value in convenient locations, including metropolitan areas, mid-sized cities and small towns. Dollarama aims to provide customers with a consistent shopping experience, offering a broad assortment of everyday consumer products, general merchandise and seasonal items. Our quality merchandise is sold in individual or multiple units at select fixed price points up to $3.00.
Certain statements in this press release about our current and future plans, expectations and intentions, results, levels of activity, performance, goals or achievements or any other future events or developments constitute forward-looking statements. The words "may", "will", "would", "should", "could", "expects", "plans", "intends", "trends", "indications", "anticipates", "believes", "estimates", "predicts", "likely" or "potential" or the negative or other variations of these words or other comparable words or phrases, are intended to identify forward-looking statements.
Forward-looking statements are based on information currently available to us and on estimates and assumptions made by us regarding, among other things, general economic conditions, construction costs and timelines as well as other factors that we believe are appropriate and reasonable in the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, but not limited to, the factors discussed in the "Risks and Uncertainties" section of the Corporation's management's discussion and analysis (available on SEDAR at www.sedar.com).
These factors are not intended to represent a complete list of the factors that could affect us; however, they should be considered carefully. The purpose of the forward-looking statements is to provide the reader with a description of management's expectations regarding the Corporation's financial performance and may not be appropriate for other purposes; readers should not place undue reliance on forward-looking statements made herein. Furthermore, unless otherwise stated, the forward-looking statements contained in this press release are made as at February 2, 2016 and we have no intention and undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
SOURCE Dollarama Inc.