LONGUEUIL, QUÉBEC--(Marketwire - May 3, 2012) - (TSX:PJC.A)
- Net profit per share amounted to $0.28, compared with $0.20 during the fourth quarter of fiscal year 2011.
- Revenues amounted to $737.2 million compared to $659.8 million during the fourth quarter of fiscal year 2011, an 11.7% increase.
- Quarterly dividend increases by 16.7 %, to $0.07 per share.
The Jean Coutu Group (PJC) Inc. (the "Corporation" or the "Jean Coutu Group") (TSX:PJC.A) reported its financial results today for the fourth quarter and fiscal year 2012 ended March 3, 2012.
| Summary of results |
| (Unaudited, in millions of Canadian dollars, except per share amounts) |
| Fiscal year | |||||
| Q4-2012 | Q4-2011 | 2012 | 2011 | ||
| 14 weeks | 13 weeks | 53 weeks | 52 weeks | ||
| $ | $ | $ | $ | ||
| Revenues | 737.2 | 659.8 | 2,733.1 | 2,612.8 | |
| Operating income before amortization ("OIBA") | 83.4 | 74.6 | 311.2 | 290.5 | |
| Net profit | 62.0 | 46.5 | 230.0 | 182.6 | |
| Per share | 0.28 | 0.20 | 1.03 | 0.78 | |
Highlights
- Increase of operating income before depreciation and amortization ("OIBA") by 11.8% for the fourth quarter ended March 3, 2012, despite the price reduction of generic drugs to 30% of the brand name drugs on April 21, 2011.
- During fiscal year 2012 the PJC network of franchised stores continued its expansion by opening 20 stores, including 9 relocations.
- The Toronto Stock Exchange accepted the notice of intention to purchase up to 9,398,000 of the Corporation's outstanding class A subordinate voting shares in the 12-month period ending May 6, 2013.
Financial results
"The results of the fourth quarter and fiscal 2012 speak for the excellent performance of our organization. We have successfully continued the implementation of our business plan, allowing us to post a significant growth of the net profit despite the price reduction of generic drugs," said François J. Coutu, President and Chief Executive Officer. "Over the coming year, we will spare no effort to pursue our growth. We will continue to ensure the development of our offer and we will implement effective marketing strategies in order to contribute to an increase of the retail sales of the PJC network."
International Financial Reporting Standards ("IFRS")
All figures in this release are in Canadian dollars and presented according to IFRS accounting standards. In preparing its comparative information for fiscal year 2011, the Corporation adjusted amounts previously reported in the financial statements prepared in accordance with Canadian Generally Accepted Accounting principles "Canadian GAAP". Readers are referred to Note 33 of the Corporation's Consolidated Financial Statements for the fourth quarter of 2012 for further information about the transition to IFRS.
Fiscal year
The Company's reporting calendar is based on the US National Retail Federation 4-5-4 merchandising calendar. Accordingly, the Company's fiscal year is usually 52 weeks in duration but includes a 53rd week every 5 to 6 years. The year ended March 3, 2012 contains 53 weeks while the year ended February 26, 2011 contained 52 weeks. The quarter ended March 3, 2012 contains 14 weeks compared with 13 weeks for the quarter ended February 26, 2011.
Revenue
Revenue consists mainly of sales and other revenues derived from franchising activities. Merchandise sales to PJC franchisees made mostly through our distribution centres account for the greater part of our sales.
Revenue amounted to $737.2 million during the fourth quarter ended March 3, 2012, compared with $659.8 million during the fourth quarter ended February 26, 2011, an increase of 11.7%. For fiscal year 2012, revenue amounted to $2,733.1 million compared to $2,612.8 million during previous fiscal year, an increase of 4.6%. This increase is attributable to the additional week in fiscal year 2012 combined with overall market growth and the expansion of the PJC network of franchised stores, despite the deflationary impact on revenue due to the introduction of the generic version of large volume drugs as well as the price reductions of generic drugs previously decreed by the Québec government.
OIBA
OIBA increased by $8.8 million to $83.4 million for the fourth quarter of fiscal year 2012 compared with $74.6 million for the fourth quarter of fiscal year 2011. This increase is mostly attributable to the additional week in the fourth quarter of fiscal year 2012 and to a strong operational performance of the franchising activities. OIBA as a percentage of revenue ended the fourth quarter of fiscal year 2012 at 11.3% same as for the fourth quarter of the previous fiscal year.
For fiscal year 2012, OIBA increased by $20.7 million and amounted to $311.2 million compared with $290.5 million during fiscal year 2011. OIBA as a percentage of revenues ended fiscal year 2012 at 11.4% compared with 11.1% for the same period last year.
Pro Doc
Gross sales of Pro Doc drugs, net of intersegments eliminations, amounted to $41.6 million during the fourth quarter ended March 3, 2012, compared with $37.4 million during the fourth quarter ended February 26, 2011. Pro Doc's contribution to the consolidated OIBA, amounted to $17.3 million during the fourth quarter ended March 3, 2012, compared with $14.1 million during the fourth quarter ended February 26, 2011. Pro Doc's contribution to the consolidated OIBA as a percentage of gross sales net of intersegment eliminations ended the fourth quarter of fiscal year 2012 at 41.2% compared to 37.7% for the same period last year.
For fiscal year 2012, gross sales of Pro Doc drugs, net of intersegments eliminations, amounted to $148.3 million, compared with $144.3 million for the same period of fiscal year 2011. Pro Doc's contribution to the consolidated OIBA, amounted to $58.5 million in fiscal year 2012, compared with $53.0 million for the same period of fiscal year 2011.
Net profit
Net profit amounted to $62.0 million ($0.28 per share) during the fourth quarter ended March 3, 2012 compared with $46.5 million ($0.20 per share) during the fourth quarter ended February 26, 2011. The increase in net profit is attributable to the additional week in the fourth quarter of fiscal year 2012, the strong operational performance of the Company and the reversal of $8.1 million of tax provisions.
Net profit for fiscal 2012 amounted to $230.0 million ($1.03 per share) compared with $182.6 million ($0.78 per share) during fiscal 2011. The increase is mainly attributable to the strong operational performance of the Corporation, the gain on disposal of 17,574,100 shares of Rite-Aid for a total consideration of $22.0 million, net of related costs and the reversal of $8.1 million of tax provisions.
Rite Aid
In accordance with the provisions of Rule 144 under the Securities Act of 1933, the Corporation filed on April 17, 2012 a notice confirming its intent to dispose up to 56,000,000 of its 234,401,162 common shares of Rite Aid. On April 20, 2012, the Corporation completed the sale of these 56,000,000 common shares. These shares were sold at an average price of US$1.51 per share for a total proceed of $82.8 million (US$83.6 million), net of related costs. Consequently, a gain of $82.8 million will be recorded in the Corporation's consolidated statement of income during the first quarter of the 2013 fiscal year since the carrying value of the investment in Rite Aid was previously written-off.
The sale of these shares brings the Corporation's interest in Rite Aid's outstanding common shares down to 19.85%. According to the International Financial Reporting Standards, the investment in Rite Aid will now be accounted for at fair value. This change will result in a non-cash gain of $265.2 million (US$267.6 million) in the Corporation's consolidated statement of income equivalent to the fair value as at April 20, 2012 of the 178,401,162 common shares that the Corporation still owns. Subsequent changes in the fair value of the investment in Rite Aid will be accounted for in the Corporation's consolidated statement of comprehensive income.
Following these transactions, the number of the Corporation's representatives on Rite Aid's Board of Directors decreased from 3 to 2 members, as stipulated in the stockholder agreement between Corporation and Rite Aid.
Information on the PJC network of franchised stores
The Corporation carries on the franchising activity under the banners of PJC Jean Coutu, PJC Clinique, PJC Jean Coutu Santé and PJC Jean Coutu Santé Beauté, operates two distribution centres and coordinates several other services for the benefit of its franchisees.
On a same-store and comparable periods basis, the PJC network's retail sales grew by 4.2%, pharmacy sales gained 4.4% and front-end sales increased by 4.2% during the fourth quarter ended March 3, 2012 compared with the same period last year. During the fourth quarter ended March 3, 2012, sales of non-prescription drugs, which represented 9.1% of total retail sales, increased by 3.2% for comparable periods, whereas these sales had increased by 8.5% during the fourth quarter ended February 26, 2011.
For the fiscal year ended March 3, 2012, on a same store and comparable period basis, the PJC network's retail sales grew by 2.3%, pharmacy sales increased by 2.0% whereas front end sales increased by 2.6% compared with the same period of previous fiscal year. For the fiscal year ended March 3, 2012, sales of non-prescription drugs, which represented 8.9% of total retail sales, increased by 3.5% for comparable periods whereas these sales had increased by 3.2% for fiscal year 2011.
Generic drugs reached 57.4% of drugs prescriptions during the fourth quarter of fiscal year 2012 compared with 55.6% during the same quarter of the previous fiscal year. The increase in the number of generic drugs prescriptions with lower selling prices than brand name drugs had a deflationary impact on the pharmacy's retail sales. Therefore, the introduction of new generic drugs reduced pharmacy's retail sales growth by 0.8% and price reductions of generic drugs decreed by the Québec government reduced the growth of those sales by 1.8% for the fourth quarter of fiscal year 2012.
| Fiscal year | |||||||||
| Q4-2012 | Q4-2011 | 2012 | 2011 | ||||||
| Network performance(1) | 14 weeks | 13 weeks | 53 weeks | 52 weeks | |||||
| Retail sales (unaudited, in millions of dollars) | $1,117.3 | $988.5 | $4,001.8 | $3,778.5 | |||||
| Retail sales growth (in percentage)(2) | |||||||||
| Total stores | |||||||||
| Total | 4.9 | % | 3.9 | % | 3.8 | % | 3.9 | % | |
| Pharmacy | 5.1 | % | 3.4 | % | 3.7 | % | 3.9 | % | |
| Front-end | 4.9 | % | 4.2 | % | 3.9 | % | 3.2 | % | |
| Same store | |||||||||
| Total | 4.2 | % | 1.4 | % | 2.3 | % | 1.6 | % | |
| Pharmacy | 4.4 | % | 0.9 | % | 2.0 | % | 1.9 | % | |
| Front-end | 4.2 | % | 1.5 | % | 2.6 | % | 0.3 | % | |
| Prescriptions growth (in percentage)(2) | |||||||||
| Total stores | 6.5 | % | 8.5 | % | 7.3 | % | 7.1 | % | |
| Same store | 5.7 | % | 5.8 | % | 5.5 | % | 5.1 | % | |
| (1) | Franchised outlets' retail sales are not included in the Corporation's consolidated financial statements. |
| (2) | Information on growth was established on a comparable number of weeks. |
PJC network of franchised stores expansion
During the fourth quarter of fiscal year 2012, there were 6 store openings in the PJC network of franchised stores, including 2 relocations. In addition, 1 store was significantly renovated or expanded.
During fiscal year 2012, there were 20 store openings in the PJC network of franchised stores, including 9 relocations and one store closed. In addition, 28 stores were significantly renovated or expanded.
Normal Course Issuer Bid
On May 2, 2011, the Corporation announced its intention to repurchase for cancellation, up to 10,400,000 of its outstanding Class A subordinate voting shares. For the fourth quarter ended March 3, 2012, the Corporation repurchased 934,450 Class A subordinate voting shares at an average price of $13.24 per share for a total consideration of $12.4 million including related costs. An amount of $7.4 million representing the excess of the purchase price over the carrying value of the repurchased shares was recorded in the retained earnings for the fourth quarter ended March 3, 2012. For fiscal year ended March 3, 2012 and during the last period of repurchase of shares in the normal course of activities ending May 3, 2012, the Corporation repurchased 10,400,000 Class A subordinate voting shares at a weighted average price of $11.93 per share for a total consideration of $124.1 million. An amount of $68.6 million representing the excess of the purchase price over the carrying value of the repurchased shares was recorded in the retained earnings for fiscal year ended March 3, 2012. The shares repurchased during fiscal year ended March 3, 2012 were cancelled.
The Corporation announces today acceptance by the Toronto Stock Exchange of notice of the Corporation's intention to purchase from time to time through the facilities of the Toronto Stock Exchange and in accordance with its requirements, if it is considered advisable, up to 9,398,000 of its outstanding class A subordinate voting shares, its only class of shares publicly traded, subject to a daily repurchase restriction of 44,721 Class A subordinate voting shares. This number represents approximately 10% of the outstanding current public float as of May 2, 2012. At that date, 104,790,188 class A subordinate voting shares were issued and outstanding, 93,984,868 of which shares were held by the public. The purchase of the Class A subordinate voting shares may be made pursuant to this notice in the 12-month period commencing May 7, 2012 and ending May 6, 2013. All Class A subordinate voting shares purchased pursuant to this notice will be cancelled.
The Corporation has determined that the purchase of its Class A subordinate voting shares will allow it to continue optimizing its capital structure and creating long-term value for shareholders.
Dividend
The Board of the Jean Coutu Group declared a quarterly dividend of $0.07 per share, an increase of 16.7% from previous quarter. This dividend will be paid on June 1, 2012, to all holders of Class A subordinate voting shares and holders of Class B shares listed in the Corporation's shareholder ledger as of May 18, 2012. This quarterly dividend represents $ 0.28 per share on an annual basis.
Strategies and outlook
With its operations and financial flexibility, the Corporation is very well positioned to capitalize on the growth in the drugstore retail industry. Demographic trends are expected to contribute to the growth in prescription drugs' consumption and to the increased use of pharmaceuticals as the primary intervention in individual healthcare. Management believes that these trends will continue and that the Corporation will maintain its growth in sales through differentiation and quality of offering and service levels to its network of franchised stores, with a focus on sales growth, its real estate program and operating efficiency. The growth in the number of generic drugs' prescriptions will however have a deflationary impact on retail sales in the pharmacy section but our integration in generic drugs with Pro Doc will have a positive impact on the consolidated margins.
Conference call
Financial analysts and investors are invited to attend the fourth quarter of fiscal year 2012 results conference call to be held on May 3, 2012, at 9:00 AM (ET). The call-in number is 514 861-2255 or toll free at 1 877 405-9213, access code 3301554 followed by pound sign (#). Media and other interested individuals are invited to listen to the live or deferred broadcast on The Jean Coutu Group corporate website at www.jeancoutu.com. A full replay will also be available by dialling 514 861-2272 or toll free at 1 800-408-3053 until June 3, 2012. The access code is 6374005, followed by pound sign (#).
Supporting documentation (Management's discussion and analysis and investor presentation) is available at www.jeancoutu.com using the investors' link. Readers may also access additional information and filings related to the Corporation using the following link to the www.sedar.com website.
About The Jean Coutu Group
The Jean Coutu Group is one of the most trusted names in Canadian pharmacy retailing. The Corporation operates a network of 399 franchised stores located in the provinces of Québec, New Brunswick and Ontario under the banners of PJC Jean Coutu, PJC Clinique, PJC Santé and PJC Santé Beauté, and employs close to 19,000 people. Furthermore, as of December 2007, the Jean Coutu Group owns Pro Doc Ltd ("Pro Doc"), a Québec-based subsidiary and manufacturer of generic drugs. The Corporation also holds a significant interest in Rite Aid Corporation ("Rite Aid") a national chain of drugstores in the United States with approximately 4,700 drugstores in 31 states and the District of Columbia.
This press release contains forward-looking statements that involve risks and uncertainties, and which are based on the Corporation's current expectations, estimates, projections and assumptions made by the Jean Coutu Group in light of its experience and its perception of historical trends. All statements that address expectations or projections about the future, including statements about the Corporation's strategy for growth, costs, operating or financial results, are forward-looking statements. All statements other than statements of historical facts included in this MD&A, including statements regarding the prospects of the Corporation's industry and the Corporation's prospects, plans, financial position and business strategy may constitute forward-looking statements within the meaning of the Canadian securities legislation and regulations. Some of the forward-looking statements may be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "project", "could", "anticipate", "plan", "foresee", "believe" or "continue", the negatives of these terms, the variations of them or the use of other similar terms. Although the Corporation believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. These statements do not reflect the potential impact of any non-recurring items or of any mergers, acquisitions, dispositions, asset write-downs or other transactions or charges that may be announced or that may occur after the date hereof. While the list below of cautionary statements is not exhaustive, some important factors that could affect our future operating results, financial position and cash flows and could cause our actual results to differ materially from those expressed in these forward-looking statements, namely changes in the legislation or the regulatory environment as it relates to the sale of prescription drugs and the pharmacy exercise, the success of the Corporation's business model, changes in laws and regulations, or in their interpretations, changes to tax regulations and accounting pronouncements, the cyclical and seasonal variations in the industry in which we operate, the intensity of competitive activity in the industry in which we operate, the supplier and brand reputations, our equity interest in Rite Aid Corporation ("Rite Aid"), our ability to attract and retain pharmacists, labour disruptions, including possibly strikes and labour protests, the accuracy of management's assumptions and other factors that are beyond our control.
These and other factors could cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. 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.jeancoutu.com. In particular, further details and descriptions of these and other factors are disclosed in the Corporation's Annual Information Form under "Risk Factors" as well as in the "Critical Accounting Estimates", the "Risks and uncertainties" and the "Strategies and outlook" sections of the MD&A for the fiscal year ended March 3, 2012. We expressly disclaim any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or any other reason, unless required by the applicable securities laws.
| THE JEAN COUTU GROUP (PJC) INC. | |||||||||
| Condensed consolidated statements of income | 14 weeks | 13 weeks | 53 weeks | 52 weeks | |||||
| For the periods ended March 3, 2012 and February 26, 2011 | 2012 | 2011 | 2012 | 2011 | |||||
| (unaudited, in millions of Canadian dollars, unless otherwise noted) |
$ |
$ |
$ |
$ |
|||||
| Sales | 664.9 | 591.4 | 2,463.2 | 2,348.7 | |||||
| Other revenues | 72.3 | 68.4 | 269.9 | 264.1 | |||||
| 737.2 | 659.8 | 2,733.1 | 2,612.8 | ||||||
| Operating expenses | |||||||||
| Cost of sales | 590.3 | 525.2 | 2,184.3 | 2,091.6 | |||||
| General and operating expenses | 63.5 | 60.0 | 237.6 | 230.7 | |||||
| Operating income before depreciation and amortization | 83.4 | 74.6 | 311.2 | 290.5 | |||||
| Depreciation and amortization | 7.8 | 8.0 | 30.4 | 28.9 | |||||
| Operating income | 75.6 | 66.6 | 280.8 | 261.6 | |||||
| Financing expenses (income) | (0.6 | ) | - | 1.0 | 1.1 | ||||
| Profit before the following items | 76.2 | 66.6 | 279.8 | 260.5 | |||||
| Gains on sales of investment in associate Rite Aid | - | - | 22.0 | - | |||||
| Profit before income taxes | 76.2 | 66.6 | 301.8 | 260.5 | |||||
| Income taxes | 14.2 | 20.1 | 71.8 | 77.9 | |||||
| Net profit | 62.0 | 46.5 | 230.0 | 182.6 | |||||
| Basic and diluted profit per share, in dollars | 0.28 | 0.20 | 1.03 | 0.78 | |||||
| Condensed consolidated statements of comprehensive income | 14 weeks | 13 weeks | 53 weeks | 52 weeks | |||||
| For the periods ended March 3, 2012 and February 26, 2011 | 2012 | 2011 | 2012 | 2011 | |||||
| (unaudited, in millions of Canadian dollars) | $ | $ | $ | $ | |||||
| . | . | ||||||||
| Net profit | 62.0 | 46.5 | 230.0 | 182.6 | |||||
| Other comprehensive income | |||||||||
| Actuarial losses on defined benefit pension plans | (3.3 | ) | (0.1 | ) | (3.3 | ) | (0.1 | ) | |
| Pension plan asset limitation on defined benefit pension plans | 1.1 | 0.1 | 1.1 | 0.1 | |||||
| Income taxes on the above items | 0.6 | - | 0.6 | - | |||||
| (1.6 | ) | - | (1.6 | ) | - | ||||
| Total comprehensive income | 60.4 | 46.5 | 228.4 | 182.6 | |||||
| THE JEAN COUTU GROUP (PJC) INC. | |||||||||||
| Condensed consolidated statements of changes in equity | |||||||||||
| For the periods ended March 3, 2012 and February 26, 2011 | |||||||||||
| (in millions of Canadian dollars) | |||||||||||
| Capital stock |
Treasury stock |
Contributed surplus |
Retained earnings (deficit) |
Total equity |
|||||||
| $ | $ | $ | $ | $ | |||||||
| Balance at February 28, 2010 | 650.8 | - | 0.6 | (122.3 | ) | 529.1 | |||||
| Net profit | - | - | - | 182.6 | 182.6 | ||||||
| Other comprehensive income | - | - | - | - | - | ||||||
| Total comprehensive income | - | - | - | 182.6 | 182.6 | ||||||
| Redemption of capital stock | (36.6 | ) | - | - | (26.4 | ) | (63.0 | ) | |||
| Dividends | - | - | - | (51.4 | ) | (51.4 | ) | ||||
| Share-based compensation cost | - | - | 0.8 | - | 0.8 | ||||||
| Options exercised | 0.2 | - | - | - | 0.2 | ||||||
| Balance at February 26, 2011 | 614.4 | - | 1.4 | (17.5 | ) | 598.3 | |||||
| Net profit | - | - | - | 230.0 | 230.0 | ||||||
| Other comprehensive income | - | - | - | (1.6 | ) | (1.6 | ) | ||||
| Total comprehensive income | - | - | - | 228.4 | 228.4 | ||||||
| Redemption of capital stock | (55.5 | ) | (1.0 | ) | - | (68.6 | ) | (125.1 | ) | ||
| Dividends | - | - | - | (53.8 | ) | (53.8 | ) | ||||
| Share-based compensation cost | - | - | 0.6 | 0.1 | 0.7 | ||||||
| Options exercised | 0.8 | - | (0.1 | ) | - | 0.7 | |||||
| Balance at March 3, 2012 | 559.7 | (1.0 | ) | 1.9 | 88.6 | 649.2 | |||||
| THE JEAN COUTU GROUP (PJC) INC. | |||||||
| Condensed consolidated statements of financial position | As at March 3, 2012 |
As at February 26, 2011 |
As at February 28, 2010 |
||||
| (unaudited, in millions of Canadian dollars) | $ | $ | $ | ||||
| Current assets | |||||||
| Trade and other receivables | 206.5 | 193.5 | 192.7 | ||||
| Inventories | 166.2 | 173.2 | 163.8 | ||||
| Income taxes recoverable | 0.2 | - | - | ||||
| Prepaid expenses | 12.9 | 6.9 | 5.0 | ||||
| 385.8 | 373.6 | 361.5 | |||||
| Non-current assets | |||||||
| Long-term receivables from franchisees | 33.4 | 34.7 | 33.3 | ||||
| Other financial assets | 19.0 | 23.0 | 22.7 | ||||
| Investment in associates | 6.9 | 7.6 | 7.9 | ||||
| Property and equipment | 361.1 | 362.4 | 341.3 | ||||
| Investment property | 20.5 | 20.5 | 24.0 | ||||
| Intangible assets | 186.9 | 174.4 | 137.7 | ||||
| Goodwill | 36.0 | 36.0 | 36.0 | ||||
| Deferred tax | 12.6 | 17.4 | 21.2 | ||||
| Other long-term assets | 10.6 | 10.1 | 10.2 | ||||
| Total assets | 1,072.8 | 1,059.7 | 995.8 | ||||
| Current liabilities | |||||||
| Bank overdraft | 5.0 | 16.5 | 13.3 | ||||
| Trade and other payables | 230.6 | 208.7 | 193.8 | ||||
| Income taxes payable | 23.2 | 35.6 | 41.1 | ||||
| Short term portion of long-term debt | 149.9 | - | - | ||||
| 408.7 | 260.8 | 248.2 | |||||
| Non-current liabilities | |||||||
| Long-term debt | - | 184.8 | 199.9 | ||||
| Deferred tax | 1.0 | 1.4 | 1.3 | ||||
| Other long-term liabilities | 13.9 | 14.4 | 17.3 | ||||
| Total liabilities | 423.6 | 461.4 | 466.7 | ||||
| Equity | |||||||
| Capital stock | 559.7 | 614.4 | 650.8 | ||||
| Treasury stock | (1.0 | ) | - | - | |||
| Contributed surplus | 1.9 | 1.4 | 0.6 | ||||
| Retained earnings (deficit) | 88.6 | (17.5 | ) | (122.3 | ) | ||
| Total equity | 649.2 | 598.3 | 529.1 | ||||
| Total liabilities and equity | 1,072.8 | 1,059.7 | 995.8 | ||||
| THE JEAN COUTU GROUP (PJC) INC. | |||||||||
| Condensed consolidated statements of cash flows | 14 weeks | 13 weeks | 53 weeks | 52 weeks | |||||
| For the periods ended March 3, 2012 and February 26, 2011 | 2012 | 2011 | 2012 | 2011 | |||||
| (unaudited, in millions of Canadian dollars) | $ | $ | $ | $ | |||||
| Operating activities | |||||||||
| Net profit | 62.0 | 46.5 | 230.0 | 182.6 | |||||
| Adjustments for: | |||||||||
| Depreciation and amortization | 7.8 | 8.0 | 30.4 | 28.9 | |||||
| Change in fair value of other financial assets | (1.3 | ) | (0.7 | ) | (1.9 | ) | (1.0 | ) | |
| Gains on sales of investment in associate Rite Aid | - | - | (22.0 | ) | - | ||||
| Interest on long-term debt | 0.6 | 0.7 | 2.8 | 2.6 | |||||
| Income taxes | 14.2 | 20.1 | 71.8 | 77.9 | |||||
| Others | 2.5 | 2.0 | 3.8 | 4.7 | |||||
| 85.8 | 76.6 | 314.9 | 295.7 | ||||||
| Net changes in non-cash asset and liability items | 8.8 | 15.1 | 16.7 | (0.2 | ) | ||||
| Interest paid | (0.6 | ) | (0.7 | ) | (2.8 | ) | (2.5 | ) | |
| Income taxes paid | (20.3 | ) | (17.4 | ) | (83.8 | ) | (79.5 | ) | |
| Cash flow related to operating activities | 73.7 | 73.6 | 245.0 | 213.5 | |||||
| Investing activities | |||||||||
| Proceeds from disposal of investment in associate Rite Aid | - | - | 22.0 | - | |||||
| Purchase of property and equipment | (8.1 | ) | (8.9 | ) | (24.9 | ) | (43.5 | ) | |
| Proceeds from disposal of property and equipment | - | 0.2 | 2.2 | 2.1 | |||||
| Purchase of investment property | - | - | (0.3 | ) | (0.4 | ) | |||
| Proceeds from disposal of investment property | 0.4 | 2.8 | 2.7 | 3.9 | |||||
| Net change in long-term receivables from franchisees | (0.3 | ) | (1.0 | ) | (3.4 | ) | (6.8 | ) | |
| Receipts from other financial assets | - | 0.1 | 5.9 | 0.6 | |||||
| Purchase of intangible assets | (8.0 | ) | (1.2 | ) | (22.7 | ) | (45.5 | ) | |
| Others | (0.4 | ) | - | 1.6 | - | ||||
| Cash flow related to investing activities | (16.4 | ) | (8.0 | ) | (16.9 | ) | (89.6 | ) | |
| Financing activities | |||||||||
| Net change in revolving credit facility | (15.0 | ) | (34.9 | ) | (34.9 | ) | (15.1 | ) | |
| Financing fees | - | - | (1.3 | ) | - | ||||
| Issuance of capital stock | 0.2 | 0.1 | 0.7 | 0.2 | |||||
| Redemption of capital stock | (14.5 | ) | (14.9 | ) | (127.3 | ) | (60.8 | ) | |
| Dividends paid | (13.1 | ) | (12.7 | ) | (53.8 | ) | (51.4 | ) | |
| Cash flow related to financing activities | (42.4 | ) | (62.4 | ) | (216.6 | ) | (127.1 | ) | |
| Net change in cash and cash equivalents | 14.9 | 3.2 | 11.5 | (3.2 | ) | ||||
| Bank overdraft, beginning of period | (19.9 | ) | (19.7 | ) | (16.5 | ) | (13.3 | ) | |
| Bank overdraft, end of period | (5.0 | ) | (16.5 | ) | (5.0 | ) | (16.5 | ) | |
Contact Information:
The Jean Coutu Group (PJC) Inc.
Andre Belzile
Senior Vice-President, Finance and Corporate Affairs
(450) 646-9760
Information:
Helene Bisson
Vice-President, Communications
(450) 646-9611, Ext. 1165