Canadian Tire Corporation Reports Strong Q3 Results

Canadian Tire Corporation Reports Strong Q3 Results, Increases Dividend 15.3% and Announces a New Share Repurchase Program

TORONTO, Nov. 8, 2018 /CNW/ –¬†Canadian Tire Corporation, Limited (TSX:CTC, TSX:CTC.A) today released third quarter results for the period ended September 29, 2018.

  • Strong topline growth in the third quarter in retail and financial services
    • Consolidated comparable sales up 2.5%; CTR up 2.2%; FGL up 2.2%; Mark’s up 6.1%
    • Financial Services receivables grew 11.2%
  • Third quarter diluted EPS was $3.15. Normalized EPS was $3.47, up 34.1%, adjusted for Helly Hansen acquisition costs
    • Retail IBT grew 4.1%. Normalized retail IBT grew 18.0%, adjusted for Helly Hansen acquisition costs
    • Financial Services IBT grew 31.6%
  • Increase of $0.55 or 15.3% in the annual dividend from $3.60 to $4.15 per share on each Class A Non-Voting and Common Share
  • Intention to return capital to shareholders through repurchase of $300-$400 million of Class A Non-Voting Shares by the end of 2019

“We delivered strong topline growth in our retail and financial services businesses this quarter. The exceptional success of Triangle Rewards™, a strong start from Helly Hansen and our continued commitment to the substantial investments we are making to develop the future capabilities required to meet our customers’ expectations, will be fundamental to the long-term growth of CTC for years to come”, said Stephen Wetmore, President and CEO, Canadian Tire Corporation. “With the national rollout of deliver-to-home capabilities at CTR, combined with our best-in-class store and digital experience, our customers can now shop how they want, when they want at any of our banners.”

“The double-digit increase in our dividend and the continuation of our share repurchase program further signal our confidence in the Company’s future,” continued Wetmore.

CONSOLIDATED OVERVIEW

  • Consolidated retail sales increased $164.2 million, or 4.4%, in the third quarter. Excluding Petroleum, consolidated retail sales were up 2.6% over the same period last year.
  • Consolidated revenue increased $365.6 million, or 11.2%, which includes a $74.7 million increase in Petroleum revenue resulting from higher per litre gas prices. Excluding Petroleum, consolidated revenue increased $290.9 million, or 10.4%, in the quarter.
  • Normalizing item in the quarter reflects costs incurred in relation to the acquisition of Helly Hansen of $22.4 million.
  • Consolidated adjusted normalized EBITDA increased by 14.8% in the quarter.
  • Diluted EPS was $3.15 in the quarter, an increase of $0.56 per share, or 21.7%.
  • Normalized diluted EPS was $3.47, an increase of $0.88 per share, or 34.1%, over the same period last year.

RETAIL OVERVIEW

  • Financial results reflect Q3 2018 performance compared to Q3 2017.
  • This quarter’s results reflect the inclusion of Helly Hansen’s operations for the first time.
  • Retail segment revenue increased $338.3 million, or 11.4%. Excluding Petroleum, retail segment revenue increased 10.6%.
  • Canadian Tire Retail saw retail sales increase 2.4% and comparable sales were up 2.2%.
  • FGL retail sales were up 1.6% and comparable sales were up 2.2%.
  • Mark’s retail sales grew 6.4% and comparable sales increased 6.1%.
  • Helly Hansen revenue in the third quarter was $181.7 million.
  • Normalizing item in the quarter reflects costs incurred in relation to the acquisition of Helly Hansen of $22.4 million.
  • Income before income taxes increased $6.4 million, or 4.1%. Normalized income before income taxes increased by $28.8 million, or 18.0%.

To view a PDF version of Canadian Tire Corporation’s full quarterly earnings report please see:
http://files.newswire.ca/116/CTC_Q3_2018.pdf

Source: Canadian Tire Corporation

2018-11-08T10:01:50+00:00 November 8th, 2018|