Highlights
- Revenues of $690.6 million for the quarter ended January 30, 2022; operating earnings of $33.8 million; and net earnings attributable to shareholders of the Corporation of $18.4 million ($0.21 per share).
- Adjusted operating earnings before depreciation and amortization(1) of $89.0 million for the quarter ended January 30, 2022; adjusted operating earnings(1) of $49.3 million; and adjusted net earnings attributable to shareholders of the Corporation(1) of $30.0 million ($0.35 per share).
- Completed, on February 1st, 2022, a private offering of $200 million of 2.667% senior unsecured notes due in February 2025.
- Ranked 16th among the world's most sustainable corporations by Corporate Knights.
(1) Please refer to the section entitled "Non-IFRS Financial Measures" in this press release for a definition of these measures.
MONTRÉAL, March 08, 2022 (GLOBE NEWSWIRE) -- Transcontinental Inc. TCL announces its results for the first quarter of fiscal 2022, which ended January 30, 2022.
"While I am proud of the way we worked with our customers to ensure a continuity of supply and of the actions we took to protect our coworkers health and safety, the financial results of the quarter did not meet our expectations," said Peter Brues, President and Chief Executive Officer of TC Transcontinental. "The spread of the Omicron variant caused significant operational disruptions that hampered our ability to efficiently manage our business and, combined with inflationary pressures, had an adverse impact on our profitability.
"In our Packaging Sector, our financial performance was negatively affected by operational inefficiencies caused by Omicron, and by delays in passing through cost increases to our customers. Despite the strong demand for our products and services, our revenue growth was limited by reduced labour availability, leading to a significant increase in backlog.
"Our Printing Sector produced strong organic growth in revenues and solid profitability, despite the challenges of the pandemic. Higher revenues were noteworthy in the Sector's growth activities, namely in-store marketing, book printing and premedia. The Media Sector contributed another solid quarter with higher revenues and profitability.
"Despite a challenging quarter, our financial performance will improve with the actions we have taken, and with the lessening impact of COVID-19. Through the strength of our development of sustainable packaging, strong customer relationships, ability to generate solid cash flow and strong financial position, we are well placed to take advantage of growth opportunities and achieve our full potential."
Financial Highlights
| (in millions of dollars, except per share amounts) | Q1 - 2022 | Q1 - 2021 | Variation in % | |||
| Revenues | $690.6 | $622.7 | 10.9 | % | ||
| Operating earnings before depreciation and amortization (1) | 90.7 | 103.3 | (12.2) | |||
| Adjusted operating earnings before depreciation and amortization (1) (2) | 89.0 | 108.1 | (17.7) | |||
| Operating earnings | 33.8 | 47.2 | (28.4) | |||
| Adjusted operating earnings (2) | 49.3 | 68.6 | (28.1) | |||
| Net earnings attributable to shareholders of the Corporation | 18.4 | 27.7 | (33.6) | |||
| Net earnings attributable to shareholders of the Corporation per share | 0.21 | 0.32 | (34.4) | |||
| Adjusted net earnings attributable to shareholders of the Corporation (2) | 30.0 | 43.8 | (31.5) | |||
| Adjusted net earnings attributable to shareholders of the Corporation per share (2) | 0.35 | 0.50 | (30.0) | |||
| (1) Operating earnings before depreciation and amortization and Adjusted operating earnings before depreciation and amortization have been restated to conform to the presentation adopted in the current period. | ||||||
| (2) Please refer to the section entitled "Reconciliation of Non-IFRS Financial Measures" in this press release for adjusted data presented above. | ||||||
| Note: The above results include $9.0 million in Canada Emergency Wage Subsidy for the first quarter of 2021. | ||||||
2022 First Quarter Results
Revenues increased by $67.9 million, or 10.9%, from $622.7 million in the first quarter of 2021 to $690.6 million in the corresponding period of 2022. This increase is mainly attributable to the impact of the rise in the price of resin and the acquisition of H.S. Crocker Company, Inc. on the results of the Packaging Sector, and to the acquisition of BGI Retail Inc. in the Printing Sector. A slight increase in volume in the three sectors also contributed to the growth in revenues. These items were partially offset by the negative impact of the exchange rate variation.
Operating earnings before depreciation and amortization decreased by $12.6 million, or 12.2%, from $103.3 million in the first quarter of 2021 to $90.7 million in the first quarter of 2022. Adjusted operating earnings before depreciation and amortization decreased by $19.1 million, or 17.7%, from $108.1 million in the first quarter of 2021 to $89.0 million in the first quarter of 2022. The decrease is mainly due to the end of the Canada Emergency Wage Subsidy which the Corporation received in the previous year, as well as to the negative impact of the pandemic on our operations, and the increase in costs due to inflationary pressures. The decline in operating earnings before depreciation and amortization was partially offset by the decrease in restructuring and other costs.
Net earnings attributable to shareholders of the Corporation decreased by $9.3 million, from $27.7 million in the first quarter of 2021 to $18.4 million in the first quarter of 2022. This decline is mainly due to lower operating earnings, partially offset by the decrease in income taxes and financial expenses. On a per share basis, net earnings attributable to shareholders of the Corporation went from $0.32 in the first quarter of 2021 to $0.21 for the same period in 2022.
Adjusted net earnings attributable to shareholders of the Corporation decreased by $13.8 million, or 31.5%, from $43.8 million in the first quarter of 2021 to $30.0 million in the first quarter of 2022. This decrease is due to lower adjusted operating earnings. On a per share basis, adjusted net earnings attributable to shareholders of the Corporation went from $0.50 to $0.35.
Outlook
In the Packaging Sector, as a result of signing new contracts, introducing new products to the market and investing in new production equipment, we expect organic volume growth in fiscal year 2022 compared to fiscal 2021, excluding the impact of the 53rd week on the results for fiscal year 2021. In addition, we continue to expect an increase in adjusted operating earnings before depreciation and amortization for fiscal year 2022 compared to the prior fiscal year.
In the Printing Sector, we expect a continued recovery in printing volume. This anticipated recovery, combined with growth in our in-store marketing activities and other growth activities, gives us confidence in the outlook for revenue growth for fiscal year 2022, excluding the impact of the 53rd week on the results for fiscal year 2021. In addition, excluding amounts related to the Canada Emergency Wage Subsidy and the impact of the 53rd week on the results for fiscal year 2021, we expect an increase in adjusted operating earnings before depreciation and amortization for fiscal year 2022 compared to fiscal year 2021.
Finally, we expect to continue generating significant cash flows from operating activities. These cash flows are expected to enable us to reduce our net indebtedness, while providing us with the flexibility needed to pursue our investments focused on organic growth as well as strategic and targeted acquisitions.
Non-IFRS Financial Measures
In this document, unless otherwise indicated, all financial data are prepared in accordance with International Financial Reporting Standards (IFRS) and the term "dollar", as well as the symbol "$" designate Canadian dollars.
In addition, in this press release, we also use non-IFRS financial measures for which a complete definition is presented below and for which a reconciliation to financial information in accordance with IFRS is presented in the section entitled "Reconciliation of Non-IFRS Financial Measures" and in Note 3, "Segmented Information", to the unaudited interim condensed consolidated financial statements for the first quarter ended January 30, 2022.
| Terms Used | Definitions |
| Adjusted operating earnings before depreciation and amortization | Operating earnings before depreciation and amortization as well as restructuring and other costs (gains) and impairment of assets. |
| Adjusted operating earnings margin before depreciation and amortization | Adjusted operating earnings before depreciation and amortization divided by revenues. |
| Adjusted operating earnings | Operating earnings before restructuring and other costs (revenues), amortization of intangible assets arising from business combinations and impairment of assets. |
| Adjusted operating earnings margin | Adjusted operating earnings divided by revenues. |
| Adjusted income taxes | Income taxes before income taxes on restructuring and other costs (revenues), impairment of assets, amortization of intangible assets arising from business combinations as well as the adjustment on additional income taxes in other jurisdictions resulting from a prior year and the tax impact of an internal reorganization. |
| Adjusted net earnings attributable to shareholders of the Corporation | Net earnings attributable to shareholders of the Corporation before restructuring and other costs (revenues), amortization of intangible assets arising from business combinations and impairment of assets, net of related income taxes as well as the adjustment on additional income taxes in other jurisdictions resulting from a prior year and the tax impact of an internal reorganization. |
| Net indebtedness | Total of long-term debt, of current portion of long-term debt, of lease liabilities and of current portion of lease liabilities, less cash. |
| Net indebtedness ratio | Net indebtedness divided by the last 12 months' adjusted operating earnings before depreciation and amortization. |
Reconciliation of Non-IFRS Financial Measures
The financial information has been prepared in accordance with IFRS. However, financial measures used, namely adjusted operating earnings before depreciation and amortization, adjusted operating earnings, adjusted operating earnings margin, adjusted income taxes, adjusted net earnings attributable to shareholders of the Corporation, adjusted net earnings attributable to shareholders of the Corporation per share, net indebtedness and net indebtedness ratio, for which a reconciliation is presented in the following table, do not have any standardized meaning under IFRS and could be calculated differently by other companies. We believe that many of our readers analyze the financial performance of the Corporation's activities based on these non-IFRS financial measures as such measures may allow for easier comparisons between periods. These measures should be considered as a complement to financial performance measures in accordance with IFRS. They do not substitute and are not superior to them.
The Corporation also believes that these measures are useful indicators of the performance of its operations and its ability to meet its financial obligations. Furthermore, management also uses some of these non-IFRS financial measures to assess the performance of its activities and managers.
| Reconciliation of operating earnings - First quarter | |||
| Three months ended | |||
| (in millions of dollars) | January 30, 2022 | January 24, 2021 | |
| Operating earnings | $33.8 | $47.2 | |
| Restructuring and other costs (revenues) | (1.7 | ) | 4.8 |
| Amortization of intangible assets arising from business combinations (1) | 17.2 | 16.6 | |
| Adjusted operating earnings | $49.3 | $68.6 | |
| Depreciation and amortization (2) (3) | 39.7 | 39.5 | |
| Adjusted operating earnings before depreciation and amortization (3) | $89.0 | $108.1 | |
| (1) Intangible assets arising from business combinations include our customer relationships, trademarks and non-compete agreements. | |||
| (2) Depreciation and amortization excludes the amortization of intangible assets arising from business combinations. | |||
| (3) Depreciation and amortization and Adjusted operating earnings before depreciation and amortization have been restated to conform to the presentation adopted in the current period. | |||
| Reconciliation of operating earnings - First quarter for the Packaging Sector | |||
| Three months ended | |||
| (in millions of dollars) | January 30, 2022 | January 24, 2021 | |
| Operating earnings | $6.0 | $15.2 | |
| Restructuring and other costs (revenues) | (2.9 | ) | 0.1 |
| Amortization of intangible assets arising from business combinations (1) | 15.2 | 15.4 | |
| Adjusted operating earnings | $18.3 | $30.7 | |
| Depreciation and amortization (2) | 20.6 | 19.4 | |
| Adjusted operating earnings before depreciation and amortization | $38.9 | $50.1 | |
| (1) Intangible assets arising from business combinations include our customer relationships, trademarks and non-compete agreements. | |||
| (2) Depreciation and amortization excludes the amortization of intangible assets arising from business combinations. | |||
| Reconciliation of operating earnings - First quarter for the Printing Sector | ||||
| Three months ended | ||||
| (in millions of dollars) | January 30, 2022 | January 24, 2021 | ||
| Operating earnings | $39.3 | $42.0 | ||
| Restructuring and other costs | 1.0 | 3.1 | ||
| Amortization of intangible assets arising from business combinations (1) | 2.0 | 1.2 | ||
| Adjusted operating earnings | $42.3 | $46.3 | ||
| Depreciation and amortization (2) | 14.5 | 14.8 | ||
| Adjusted operating earnings before depreciation and amortization | $56.8 | $61.1 | ||
| (1) Intangible assets arising from business combinations include our customer relationships, trademarks and non-compete agreements. | ||||
| (2) Depreciation and amortization excludes the amortization of intangible assets arising from business combinations. | ||||
| Reconciliation of operating earnings - First quarter for the Other Sector | ||||
| Three months ended | ||||
| (in millions of dollars) | January 30, 2022 | January 24, 2021 | ||
| Operating earnings | ($11.5 | ) | ($10.0 | ) |
| Restructuring and other costs | 0.2 | 1.6 | ||
| Adjusted operating earnings | ($11.3 | ) | ($8.4 | ) |
| Depreciation and amortization (1) | 4.6 | 5.3 | ||
| Adjusted operating earnings before depreciation and amortization (1) | ($6.7 | ) | ($3.1 | ) |
| (1) Depreciation and amortization and adjusted operating earnings before depreciation and amortization have been restated to conform to the presentation adopted in the current period. | ||||
| Reconciliation of net earnings attributable to shareholders of the Corporation - First quarter | ||||
| Three months ended | ||||
| (in millions of dollars, except per share amounts) | January 30, 2022 | January 24, 2021 | ||
| Net earnings attributable to shareholders of the Corporation | $18.4 | $27.7 | ||
| Restructuring and other costs (revenues) | (1.7 | ) | 4.8 | |
| Tax on restructuring and other costs | 0.4 | (1.3 | ) | |
| Amortization of intangible assets arising from business combinations (1) | 17.2 | 16.6 | ||
| Tax on amortization of intangible assets arising from business combinations | (4.3 | ) | (4.0 | ) |
| Adjusted net earnings attributable to shareholders of the Corporation | $30.0 | $43.8 | ||
| Net earnings attributable to shareholders of the Corporation per share | $0.21 | $0.32 | ||
| Adjusted net earnings attributable to shareholders of the Corporation per share | $0.35 | $0.50 | ||
| Weighted average number of shares outstanding | 86.9 | 87.0 | ||
| (1) Intangible assets arising from business combinations include our customer relationships, trademarks and non-compete agreements. | ||||
| Reconciliation of net indebtedness | ||||
| (in millions of dollars, except ratios) | As at January 30, 2022 | As at October 31, 2021 | ||
| Long-term debt | $751.4 | $778.2 | ||
| Current portion of long-term debt | 145.3 | 187.3 | ||
| Lease liabilities | 147.1 | 137.3 | ||
| Current portion of lease liabilities | 23.5 | 23.1 | ||
| Cash | (23.0 | ) | (231.1 | ) |
| Net indebtedness | $1,044.3 | $894.8 | ||
| Adjusted operating earnings before depreciation and amortization (last 12 months) | $445.7 | $464.8 | ||
| Net indebtedness ratio | 2.3 | x | 1.9 | x |
Dividend
The Corporation's Board of Directors declared a quarterly dividend of $0.225 per share on Class A Subordinate Voting Shares and Class B Shares. This dividend is payable on April 11, 2022 to shareholders of record at the close of business on March 28, 2022.
Normal Course Issuer Bid
The Corporation was authorized to repurchase, for cancellation on the open market, or subject to the approval of any securities authority by private agreements, between October 1, 2021 and September 30, 2022, or at an earlier date if the Corporation concludes or cancels the offer, up to 1,000,000 of its Class A Subordinate Voting Shares and up to 190,300 of its Class B Shares. Under this repurchase program, the Corporation repurchased and cancelled 157,800 of its Class A Subordinate Voting Shares at a weighted average price of $18.80 during the quarter ended January 30, 2022.
Additional information
Conference Call
Upon releasing its 2022 first quarter results, the Corporation will hold a conference call for the financial community on March 8, 2022 at 4:15 p.m. The dial-in numbers are 1 438 793-6811 or 1 888 440-2149. Media may hear the call in listen-only mode or tune in to the simultaneous audio broadcast on the Corporation's website, which will then be archived for 30 days. For media requests or interviews, please contact Nathalie St-Jean, Senior Advisor, Corporate Communications of TC Transcontinental, at 514 954-3581.
Profile
TC Transcontinental is a leader in flexible packaging in North America, and Canada's largest printer. The Corporation is also the leading Canadian French-language educational publishing group. For over 45 years, TC Transcontinental's mission has been to create quality products and services that allow businesses to attract, reach and retain their target customers.
Respect, teamwork, performance and innovation are the strong values held by the Corporation and its employees. TC Transcontinental's commitment to its stakeholders is to pursue its business activities in a responsible manner.
Transcontinental Inc. TCL, known as TC Transcontinental, has approximately 8,000 employees, the majority of which are based in Canada, the United States and Latin America. TC Transcontinental had revenues of more than C$2.6 billion for the fiscal year ended October 31, 2021. For more information, visit TC Transcontinental's website at www.tc.tc.
Forward-looking Statements
Our public communications often contain oral or written forward-looking statements which are based on the expectations of management and inherently subject to a certain number of risks and uncertainties, known and unknown. By their very nature, forward-looking statements are derived from both general and specific assumptions. The Corporation cautions against undue reliance on such statements since actual results or events may differ materially from the expectations expressed or implied in them. Forward-looking statements may include observations concerning the Corporation's objectives, strategy, anticipated financial results and business outlook. The Corporation's future performance may also be affected by a number of factors, many of which are beyond the Corporation's will or control. These factors include, but are not limited to, the economic situation in the world, structural changes in the industries in which the Corporation operates, the impact of digital product development and adoption on the demand for retailer-related services and other printed products, the Corporation's ability to generate organic growth in highly competitive industries, the Corporation's ability to complete acquisitions and properly integrate them, the inability to maintain or improve operational efficiency and avoid disruptions that could affect its ability to meet deadlines, cybersecurity and data protection, the political and social environment as well as regulatory and legislative changes, in particular with regard to the environment and door-to-door distribution, changes in consumption habits related, in particular, to issues involving sustainable development and the use of certain products or services such as door-to-door distribution, change in consumption habits or loss of a major customer, customer consolidation, the safety and quality of its packaging products used in the food industry, the protection of its intellectual property rights, the exchange rate, availability of capital at a reasonable cost, bad debts from certain customers, import and export controls, raw materials, transportation and consumed energy costs, availability of raw materials, recruiting and retaining qualified personnel, taxation, interest rates and the impact of the COVID-19 pandemic on its operations, facilities and financial results, changes in consumption habits from consumers and changes in the operations and financial position of the Corporation's customers due to the COVID-19 pandemic and the effectiveness of plans and measures implemented in response thereto. The main risks, uncertainties and factors that could influence actual results are described in the Management's Discussion and Analysis for the year ended October 31, 2021 and in the latest Annual Information Form.
Unless otherwise indicated by the Corporation, forward-looking statements do not take into account the potential impact of non-recurring or other unusual items, nor of disposals, business combinations, mergers or acquisitions which may be announced or entered into after the date of March 8, 2022. The forward-looking statements in this press release are made pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. The forward-looking statements in this release are based on current expectations and information available as at March 8, 2022. Such forward-looking information may also be found in other documents filed with Canadian securities regulators or in other communications. The Corporation's management disclaims any intention or obligation to update or revise these statements unless otherwise required by the securities authorities.
For information:
| Media Nathalie St-Jean Senior Advisor, Corporate Communications TC Transcontinental Telephone: 514-954-3581 nathalie.st-jean@tc.tc www.tc.tc | Financial Community Yan Lapointe Director, Investor Relations TC Transcontinental Telephone: 514-954-3574 yan.lapointe@tc.tc www.tc.tc |
CONSOLIDATED STATEMENTS OF EARNINGS
Unaudited
| Three months ended | ||||||
| January 30, | January 24, | |||||
| (in millions of Canadian dollars, unless otherwise indicated and per share data) | 2022 | 2021 (1) | ||||
| Revenues | $ | 690.6 | $ | 622.7 | ||
| Operating expenses | 601.6 | 514.6 | ||||
| Restructuring and other costs (revenues) | (1.7 | ) | 4.8 | |||
| Operating earnings before depreciation and amortization | 90.7 | 103.3 | ||||
| Depreciation and amortization | 56.9 | 56.1 | ||||
| Operating earnings | 33.8 | 47.2 | ||||
| Net financial expenses | 9.8 | 10.8 | ||||
| Earnings before income taxes | 24.0 | 36.4 | ||||
| Income taxes | 5.7 | 8.6 | ||||
| Net earnings | 18.3 | 27.8 | ||||
| Non-controlling interest | (0.1 | ) | 0.1 | |||
| Net earnings attributable to the shareholders of the Corporation | $ | 18.4 | $ | 27.7 | ||
| Net earnings per share - basic and diluted | $ | 0.21 | $ | 0.32 | ||
| Weighted average number of shares outstanding - basic and diluted (in millions) | 86.9 | 87.0 | ||||
| (1) Certain comparative figures have been reclassified to conform to the presentation adopted in the current period. | ||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Unaudited
| Three months ended | ||||||
| January 30, | January 24, | |||||
| (in millions of Canadian dollars) | 2022 | 2021 | ||||
| Net earnings | $ | 18.3 | $ | 27.8 | ||
| Other comprehensive income (loss) | ||||||
| Items that will be or may be subsequently reclassified to net earnings | ||||||
| Net change related to cash flow hedges | ||||||
| Net change in the fair value of designated derivatives - foreign exchange risk | (3.6 | ) | 4.3 | |||
| Net change in the fair value of designated derivatives - interest rate risk | 0.8 | (0.4 | ) | |||
| Reclassification of the net change in the fair value of designated derivatives recognized in net earnings during the period | 0.9 | 3.2 | ||||
| Related income taxes | (0.5 | ) | 1.9 | |||
| (1.4 | ) | 5.2 | ||||
| Cumulative translation differences | ||||||
| Net unrealized exchange gains (losses) on the translation of the financial statements of foreign operations | 44.6 | (48.8 | ) | |||
| Net gains (losses) on hedge of the net investment in foreign operations | (12.9 | ) | 23.5 | |||
| Related income taxes | (1.3 | ) | 3.0 | |||
| 33.0 | (28.3 | ) | ||||
| Items that will not be reclassified to net earnings | ||||||
| Changes related to defined benefit plans | ||||||
| Actuarial gains on defined benefit plans | 4.7 | (9.7 | ) | |||
| Related income taxes | 1.3 | (2.8 | ) | |||
| 3.4 | (6.9 | ) | ||||
| Other comprehensive income (loss) | 35.0 | (30.0 | ) | |||
| Comprehensive income | $ | 53.3 | $ | (2.2 | ) | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Unaudited
| (in millions of Canadian dollars) | Share capital | Contributed surplus | Retained earnings | Accumulated other comprehensive income (loss) | Total | Non- controlling interest | Total equity | |||||||||||||
| Balance as at October 31, 2021 | $ | 640.0 | $ | 0.9 | $ | 1,159.5 | $ | (41.3 | ) | $ | 1,759.1 | $ | 5.2 | $ | 1,764.3 | |||||
| Net earnings | — | — | 18.4 | — | 18.4 | (0.1 | ) | 18.3 | ||||||||||||
| Other comprehensive income | — | — | — | 35.0 | 35.0 | — | 35.0 | |||||||||||||
| Shareholders' contributions and distribution | ||||||||||||||||||||
| to shareholders | ||||||||||||||||||||
| Share redemptions | (1.4 | ) | — | (1.6 | ) | — | (3.0 | ) | — | (3.0 | ) | |||||||||
| Dividends | — | — | (19.5 | ) | — | (19.5 | ) | — | (19.5 | ) | ||||||||||
| Balance as at January 30, 2022 | $ | 638.6 | $ | 0.9 | $ | 1,156.8 | $ | (6.3 | ) | $ | 1,790.0 | $ | 5.1 | $ | 1,795.1 | |||||
| Balance as at October 25, 2020 | $ | 640.0 | $ | 0.9 | $ | 1,107.2 | $ | (14.8 | ) | $ | 1,733.3 | $ | 5.3 | $ | 1,738.6 | |||||
| Net earnings | — | — | 27.7 | — | 27.7 | 0.1 | 27.8 | |||||||||||||
| Other comprehensive loss | — | — | — | (30.0 | ) | (30.0 | ) | — | (30.0 | ) | ||||||||||
| Shareholders' contributions and distribution | ||||||||||||||||||||
| to shareholders | ||||||||||||||||||||
| Dividends | — | — | (19.6 | ) | — | (19.6 | ) | — | (19.6 | ) | ||||||||||
| Balance as at January 24, 2021 | $ | 640.0 | $ | 0.9 | $ | 1,115.3 | $ | (44.8 | ) | $ | 1,711.4 | $ | 5.4 | $ | 1,716.8 | |||||
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Unaudited
| As at | As at | |||||
| January 30, | October 31, | |||||
| (in millions of Canadian dollars) | 2022 | 2021 | ||||
| Current assets | ||||||
| Cash | $ | 23.0 | $ | 231.1 | ||
| Accounts receivable | 489.3 | 496.1 | ||||
| Income taxes receivable | 10.0 | 16.9 | ||||
| Inventories | 388.3 | 357.0 | ||||
| Prepaid expenses and other current assets | 24.6 | 24.4 | ||||
| 935.2 | 1,125.5 | |||||
| Property, plant and equipment | 726.5 | 689.7 | ||||
| Right-of-use assets | 151.5 | 140.8 | ||||
| Intangible assets | 517.5 | 513.0 | ||||
| Goodwill | 1,107.5 | 1,086.6 | ||||
| Deferred taxes | 26.6 | 18.6 | ||||
| Other assets | 41.2 | 38.7 | ||||
| $ | 3,506.0 | $ | 3,612.9 | |||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 383.0 | $ | 439.2 | ||
| Provisions | 1.1 | 1.5 | ||||
| Income taxes payable | 15.4 | 28.9 | ||||
| Deferred revenues and deposits | 18.1 | 12.3 | ||||
| Current portion of long-term debt | 145.3 | 187.3 | ||||
| Current portion of lease liabilities | 23.5 | 23.1 | ||||
| 586.4 | 692.3 | |||||
| Long-term debt | 751.4 | 778.2 | ||||
| Lease liabilities | 147.1 | 137.3 | ||||
| Deferred taxes | 129.9 | 137.3 | ||||
| Provisions | 0.3 | 0.6 | ||||
| Other liabilities | 95.8 | 102.9 | ||||
| 1,710.9 | 1,848.6 | |||||
| Equity | ||||||
| Share capital | 638.6 | 640.0 | ||||
| Contributed surplus | 0.9 | 0.9 | ||||
| Retained earnings | 1,156.8 | 1,159.5 | ||||
| Accumulated other comprehensive loss | (6.3 | ) | (41.3 | ) | ||
| Attributable to the shareholders of the Corporation | 1,790.0 | 1,759.1 | ||||
| Non-controlling interest | 5.1 | 5.2 | ||||
| 1,795.1 | 1,764.3 | |||||
| $ | 3,506.0 | $ | 3,612.9 | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
| Three months ended | ||||||
| January 30, | January 24, | |||||
| (in millions of Canadian dollars) | 2022 | 2021 (1) | ||||
| Operating activities | ||||||
| Net earnings | $ | 18.3 | $ | 27.8 | ||
| Adjustments to reconcile net earnings and cash flows from operating activities: | ||||||
| Depreciation and amortization | 56.9 | 56.1 | ||||
| Financial expenses on long-term debt and lease liabilities | 10.1 | 9.5 | ||||
| Net losses on disposal of assets | 0.2 | 0.3 | ||||
| Income taxes | 5.7 | 8.6 | ||||
| Net foreign exchange differences and other | (3.3 | ) | 4.0 | |||
| Cash flows generated by operating activities before changes in non-cash operating | ||||||
| items and income taxes paid | 87.9 | 106.3 | ||||
| Changes in non-cash operating items | (64.9 | ) | (12.5 | ) | ||
| Income taxes paid | (29.4 | ) | (9.1 | ) | ||
| Cash flows from operating activities | (6.4 | ) | 84.7 | |||
| Investing activities | ||||||
| Business combinations, net of acquired cash | (45.7 | ) | — | |||
| Acquisitions of property, plant and equipment | (28.1 | ) | (27.3 | ) | ||
| Disposals of property, plant and equipment | — | 0.1 | ||||
| Increase in intangible assets | (6.1 | ) | (4.5 | ) | ||
| Cash flows from investing activities | (79.9 | ) | (31.7 | ) | ||
| Financing activities | ||||||
| Reimbursement of long-term debt | (186.7 | ) | (83.4 | ) | ||
| Net increase in credit facilities | 103.5 | 3.4 | ||||
| Financial expenses paid on long-term debt and credit facilities | (10.2 | ) | (7.6 | ) | ||
| Repayment of principal on lease liabilities | (6.5 | ) | (5.4 | ) | ||
| Interest paid on lease liabilities | (0.5 | ) | (0.9 | ) | ||
| Dividends | (19.5 | ) | (19.6 | ) | ||
| Share redemptions | (3.0 | ) | — | |||
| Cash flows from financing activities | (122.9 | ) | (113.5 | ) | ||
| Effect of exchange rate changes on cash denominated in foreign currencies | 1.1 | 1.5 | ||||
| Net change in cash | (208.1 | ) | (59.0 | ) | ||
| Cash at beginning of period | 231.1 | 241.0 | ||||
| Cash at end of period | $ | 23.0 | $ | 182.0 | ||
| Non-cash investing activities | ||||||
| Net change in capital asset acquisitions financed by accounts payable | $ | 3.3 | 0.5 | |||
| (1) Certain comparative figures have been reclassified to conform to the presentation adopted in the current period. | ||||||
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