- 9.0% increase in sales and 4.7% increase in comparable store
sales
- 50 basis-point increase in full-year comparable store sales
assumption to range of 3.5% to 4.5%
- Narrowing of gross margin as a percentage of sales annual
guidance to range of 43.25% to 43.75%
- Closing of previously announced acquisition of 50.1% interest
in Latin American value retailer Dollarcity subsequent to
quarter-end, establishing second growth platform in complement to
Canadian growth strategy
MONTREAL, Sept. 12, 2019 /CNW Telbec/ - Dollarama Inc.
(TSX: DOL) ("Dollarama" or the "Corporation") today reported
increases in sales, net earnings and earnings per common share for
the second quarter ended August 4,
2019. Diluted net earnings per common share rose 7.1% to
$0.45.
Financial and Operating Highlights
All comparative figures that follow are for the second quarter
ended August 4, 2019 compared to the
second quarter ended July 29, 2018. All financial
information presented in this press release has been prepared in
accordance with generally accepted accounting principles in
Canada ("GAAP") as set out in the
CPA Canada Handbook – Accounting under Part I, which incorporates
International Financial Reporting Standards ("IFRS") as issued by
the International Accounting Standards Board ("IASB").
These results and the Corporation's unaudited condensed
interim consolidated financial statements reflect the adoption of
IFRS 16, "Leases", on February
4, 2019, and all comparative figures for the corresponding
period of the prior fiscal year have been restated (see table on
page 4 for more information).
Throughout this press release, EBITDA, EBITDA margin, total debt
and net debt, which are referred to as "non-GAAP measures", are
used to provide a better understanding of the
Corporation's financial results. For a full explanation of the
Corporation's use of non-GAAP measures, please refer to footnote 1
of the "Selected Consolidated Financial Information" section of
this press release.
Throughout this press release, all references to "Fiscal 2019"
are to the Corporation's fiscal year ended February 3, 2019, and to "Fiscal 2020" are
to the Corporation's fiscal year ending February 2, 2020. The Corporation's fiscal year
ends on the Sunday closest to January
31 of each year and usually has 52 weeks. However, as is
traditional with the retail calendar, every five or six years, a
week is added to the fiscal year. Fiscal 2019 was comprised of
53 weeks.
Compared to the second quarter of Fiscal 2019:
- Sales increased by 9.0% to $946.4
million;
- Comparable store sales(1) grew 4.7%, over and above
a 2.6% growth the previous year;
- Gross margin(1) was 43.7% of sales, compared to
45.0%(2) of sales;
- EBITDA(1) grew 3.5% to $281.6
million, or 29.8% of sales, compared to 31.3%(2)
of sales;
- Operating income grew 2.7% to $221.6
million, or 23.4% of sales, compared to 24.9%(2)
of sales; and
- Diluted net earnings per common share increased by 7.1%, to
$0.45 from $0.42(2).
__________________________
|
(1)
|
We refer the reader
to the notes in the section entitled "Selected Consolidated
Financial Information" of this press release for the definition of
these items and, when applicable, their reconciliation with the
most directly comparable GAAP measure.
|
(2)
|
Comparative financial
information and ratios have been restated to reflect the full
retrospective application of IFRS 16 for lease
accounting.
|
During the second quarter of Fiscal 2020, the Corporation opened
14 net new stores, compared to 8 net new stores during the
corresponding period of the previous fiscal year.
"Customers are responding positively to our compelling product
offering and various merchandising tactics, as demonstrated by our
strong top line performance for a second consecutive quarter. Based
on our performance to date, we are increasing our full-year
comparable store sales growth assumption to a range of 3.5% to
4.5%," said President and Chief Executive Officer,
Neil Rossy.
"Looking at the bottom line, we expect margins to be in the
lower half of our previously disclosed full-year guidance range,
which we have narrowed accordingly. We are confident that our
sustained focus on stimulating top line growth -- while still
maintaining industry-leading margins -- is the right approach in
what continues to be a competitive retail environment."
Financial Results
Sales for the second quarter of Fiscal 2020 increased by 9.0% to
$946.4 million, compared to
$868.5 million in the
corresponding period of the prior fiscal year. Continued organic
sales growth was fuelled by balanced growth in both comparable
store sales and in the total number of stores over the past
12 months, from 1,178 stores on July 29, 2018 to
1,250 stores on August 4, 2019.
Comparable store sales grew 4.7% in the second quarter of Fiscal
2020, over and above comparable store sales growth of 2.6% in the
same quarter a year ago. Comparable store sales growth for the
second quarter of Fiscal 2020 consisted of a 3.8% increase in
average transaction size, primarily driven by an increase in the
number of units per basket, and a 0.9% increase in the number of
transactions. The expansion of the Corporation's product offering
across all merchandising categories through the addition of new
stock keeping units (SKUs) contributed to comparable store sales
growth.
Gross margin was 43.7% of sales in the second quarter of Fiscal
2020, compared to 45.0% of sales in the second quarter of
Fiscal 2019. Gross margin is lower due to a slight decrease in
the product margin, higher sales of lower margin items and higher
logistics costs.
General, administrative and store operating expenses
("SG&A") for the second quarter of Fiscal 2020 was $131.7 million, compared to $118.3 million for the second quarter of Fiscal
2019. This increase is primarily related to the continued growth in
the total number of stores. SG&A for the second quarter of
Fiscal 2020 represented 13.9% of sales, compared to 13.6% of
sales for the second quarter of Fiscal 2019. The 0.3% increase
is mainly the result of the timing of expenditures.
Net financing costs increased by $2.0 million, from $22.6 million for the second quarter of
Fiscal 2019 to $24.6 million for
the second quarter of Fiscal 2020. The increase is mainly due
to increased borrowings on long-term debt, and net financing costs
now include costs related to lease liabilities as calculated under
IFRS 16 for both periods.
Net earnings increased to $143.2 million, or $0.45 per diluted common share, in the second
quarter of Fiscal 2020, compared to $140.3 million, or $0.42 per diluted common share, in the second
quarter of Fiscal 2019. This increase in net earnings is
mainly the result of a 9.0% increase in sales, partially
offset by lower margins and slightly higher SG&A as a
percentage of sales. Earnings per common share were also positively
impacted by the repurchase of shares through the Corporation's
normal course issuer bid over the past 12 months.
Acquisition of a 50.1% Interest in Dollarcity
On July 2, 2019, the Corporation
announced that it entered into a definitive stock purchase
agreement to acquire a 50.1% interest in Latin American value
retailer Dollarcity, thereby creating a second growth platform in
complement to its Canadian growth strategy. On August 14, 2019, the Corporation completed this
acquisition, and made an upfront payment of US$40 million ($52.8
million).
The total purchase price is currently estimated at between
US$85 million and US$95 million, representing 50.1% of a five times
multiple of Dollarcity's estimated EBITDA for the 12-month period
ending June 30, 2020, minus net debt
and subject to other adjustments. The current purchase price
estimate is based on financial projections, whereas the final
purchase price will be based on audited financial statements.
The balance of the purchase price, currently estimated at
between US$45 million and
US$55 million, will be recorded as a
liability in the Corporation's unaudited condensed interim
consolidated financial statements for the third quarter of
Fiscal 2020 and will be due in the third quarter of the
Corporation's next fiscal year ending January 31, 2021.
As per the terms of the stockholders agreement dated
August 14, 2019, certain strategic
and operational decisions of Dollarcity are subject to 100%
stockholder approval. As a result, Dollarcity will be treated as an
equity investee, and the Corporation will account for this
investment as a joint arrangement using the equity method. The
upfront payment of $52.8 million, as
well as the Corporation's 50.1% share of Dollarcity's net income
for the period of August 14, 2019 to
September 30, 2019, the end of Dollarcity's third
quarter, will be reflected in the Corporation's results for the
third quarter of Fiscal 2020.
At its latest quarter ended June 30,
2019, Dollarcity operated 192 stores, with 91 locations in
Colombia, 45 in El Salvador and 56 in Guatemala. This compares to a total of 169
stores as at December 31, 2018.
Normal Course Issuer Bid
On July 3, 2019, the Corporation
announced the renewal of its normal course issuer bid and the
approval from the Toronto Stock Exchange to repurchase for
cancellation up to 15,737,468 common shares, representing 5.0% of
the common shares issued and outstanding as at the close of markets
on July 2, 2019, during the 12‑month period from
July 5, 2019 to July 4, 2020 (the "2019-2020 NCIB").
During the quarter ended August 4,
2019, a total of 314,223 common shares were repurchased for
cancellation under the 2019-2020 NCIB, for a total cash
consideration of $15.5 million.
Dividend
On September 12, 2019, the
Corporation announced that its board of directors had approved a
quarterly cash dividend for holders of its common shares of
$0.044 per common share. The
Corporation's quarterly cash dividend will be paid on November 8, 2019 to shareholders of record at the
close of business on October 11, 2019 and is designated
as an "eligible dividend" for Canadian tax purposes.
Distribution Capacity Expansion Update
The expansion of the Corporation's Montreal-area distribution centre, underway
since March 2018, continues to
proceed on time and on budget, with no disruptions to distribution
centre operations. As previously confirmed, the building extension
was completed earlier this year and the next phase of the project,
which is comprised of the integration of the new facility with the
existing facility, is underway and expected to be completed before
the end of calendar 2019.
Significant Accounting Standard Adopted – IFRS 16
In January of 2016, the IASB issued IFRS 16, "Leases", which
replaces IAS 17, "Leases". The new standard is effective for fiscal
years beginning on or after January 1,
2019. The Corporation has applied IFRS 16 to the
Fiscal 2020 quarterly unaudited condensed interim consolidated
financial statements using the full retrospective approach and has
therefore restated comparative information for Fiscal 2019, as
if IFRS 16 had always been in effect.
The Corporation's financial reporting is impacted by the
adoption of IFRS 16. Certain lease-related expenses previously
recorded in occupancy costs are now recorded as a depreciation
expense for right–of-use assets and as an interest
expense for related lease liabilities. The depreciation expense is
recognized on a straight-line basis over the term of the lease,
while the interest expense declines over the life of the lease, as
the liability is paid off.
|
|
IFRS
16
|
|
|
|
IAS
17
|
|
|
13-Week Periods
Ended
|
|
13-Week Periods
Ended
|
(dollars in
millions, except per share amounts)
|
August 4,
2019
|
July 29,
2018(i)
|
Change
|
|
August 4,
2019(ii)
|
July 29,
2018
|
Change
|
|
|
|
|
|
|
|
|
Gross
margin
|
$413.2
|
$390.5
|
$22.7
|
|
$362.2
|
$344.4
|
$17.8
|
As a percentage of
sales
|
43.7%
|
45.0%
|
(1.3%)
|
|
38.3%
|
39.7%
|
(1.4%)
|
|
|
|
|
|
|
|
|
SG&A
|
$131.7
|
$118.3
|
$13.4
|
|
$132.2
|
$118.6
|
$13.6
|
As a percentage of
sales
|
13.9%
|
13.6%
|
0.3%
|
|
14.0%
|
13.7%
|
0.3%
|
|
|
|
|
|
|
|
|
EBITDA
|
$281.6
|
$272.2
|
$9.4
|
|
$230.0
|
$225.8
|
$4.2
|
As a percentage of
sales
|
29.8%
|
31.3%
|
(1.5%)
|
|
24.3%
|
26.0%
|
(1.7%)
|
|
|
|
|
|
|
|
|
Diluted net earnings
per common share
|
$0.45
|
$0.42
|
$0.03
|
|
$0.45
|
$0.43
|
$0.02
|
|
|
(i)
|
Restated to reflect
the adoption of IFRS 16.
|
(ii)
|
Presented as if
IFRS 16 had not been adopted, for illustration purposes
only.
|
Outlook
The outlook below sets out guidance ranges for Fiscal 2020,
restated to reflect the adoption of IFRS 16 effective
February 4, 2019, and also presented
under IAS 17, for illustration purposes only.
|
|
|
|
(as a percentage
of sales except net new store openings in units and capital
expenditures in millions of dollars)
|
|
Fiscal 2020
Guidance
Provided June 13, 2019
|
Revised Fiscal
2020 Guidance
|
|
|
Under IFRS
16
|
Under
IFRS 16
|
|
|
|
|
|
|
|
|
Net new store
openings
|
60 to 70
|
unchanged
|
Gross
margin
|
43.25% to
44.25%
|
43.25% to
43.75%(ii)
|
SG&A
|
14.25% to
14.75%
|
unchanged
|
EBITDA
margin
|
28.50% to
30.00%
|
28.50% to
29.50%(iii)
|
Capital
expenditures(i)
|
$130.0 to
$140.0
|
unchanged
|
|
|
|
|
(as a percentage
of sales except net new store openings in units and capital
expenditures in millions of dollars)
|
|
Fiscal 2020
Guidance
Provided June 13, 2019
|
Revised Fiscal
2020 Guidance
|
|
|
Under IAS
17
For illustration
purposes only
|
Under IAS 17
For illustration
purposes
only
|
|
|
|
|
|
|
|
|
Net new store
openings
|
|
60 to 70
|
unchanged
|
Gross
margin
|
38.0% to
39.0%
|
38.0% to
38.5%(ii)
|
SG&A
|
14.25% to
14.75%
|
unchanged
|
EBITDA
margin
|
23.25% to
24.75%
|
23.25% to
24.25%(iii)
|
Capital
expenditures(i)
|
$130.0 to
$140.0
|
unchanged
|
|
|
(i)
|
Includes additions to
property, plant and equipment, computer hardware and
software.
|
(ii)
|
Based on results for
the first six months of Fiscal 2020 and on the visibility on
open orders and product margins for the next three months,
management is narrowing the previously disclosed guidance range for
gross margin as a percentage of sales to focus on the lower half of
such range.
|
(iii)
|
EBITDA margin has
been revised for Fiscal 2020 as a result of the narrowing of the
guidance range for gross margin as a percentage of
sales.
|
The guidance ranges for Fiscal 2020 are based on a number of
assumptions, including the following:
- comparable store sales growth in the range of 3.5% to 4.5%,
revised upwards from the previous range of 3.0% to 4.0% disclosed
on June 13, 2019, based on the
comparable store sales trend for the year to date;
- the number of signed offers to lease and store pipeline for the
next six months;
- positive customer response to our product offering, value
proposition and in-store merchandising;
- the active management of product margins, including by
refreshing 25% to 30% of the offering on an annual basis;
- approximately three months of visibility on open orders and
product margins;
- the entering into of foreign exchange forward contracts to
hedge the majority of forecasted purchases of merchandise in U.S.
dollars against fluctuations of the Canadian dollar against the
U.S. dollar;
- the continued execution of in‑store productivity initiatives,
including, without limitation, the efficient use of advanced
scheduling and the realization of cost savings and benefits aimed
at improving operating expenses;
- ongoing cost monitoring;
- the capital budget for Fiscal 2020 for new store openings,
maintenance capital expenditures, and transformational capital
expenditures (the latter being mainly related to information
technology projects) as well as the remaining costs to be incurred
for the expansion of distribution capacity;
- the successful execution of our business strategy;
- the absence of a significant shift in economic conditions or
material changes in the retail competitive environment; and
- the absence of unusually adverse weather, especially in peak
seasons around major holidays and celebrations.
Many factors could cause 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 risks related to: future
increases in operating costs (including increases in statutory
minimum wages), future increases in merchandise costs (including as
a result of tariff disputes), inability to sustain assortment and
replenishment of merchandise, increase in the cost or a disruption
in the flow of imported goods, failure to maintain brand image and
reputation, disruption of distribution infrastructure, inventory
shrinkage, inability to renew store, warehouse and head office
leases on favourable terms, inability to increase warehouse and
distribution centre capacity in a timely manner, seasonality,
market acceptance of private brands, foreign exchange rate
fluctuations, competition in the retail industry, current economic
conditions, failure to attract and retain quality employees,
disruption in information technology systems, unsuccessful
execution of the growth strategy, adverse weather including any
related impact on sales, product liability claims and product
recalls, litigation and regulatory compliance.
This guidance, including the various underlying assumptions, is
forward-looking and should be read in conjunction with the
cautionary statement on forward-looking statements.
Forward-Looking Statements
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 include, without limitation,
statements relating to the financial performance of Dollarcity
and the estimated purchase price to be paid by the Corporation for
a 50.1% interest in Dollarcity.
Forward-looking statements are based on information currently
available to management and on estimates and assumptions made by
management regarding, among other things, general economic
conditions and the competitive environment within the retail
industry in Canada and in
Latin America, in light of its
experience and perception of historical trends, current conditions
and expected future developments, as well as other factors that are
believed to be appropriate and reasonable in the circumstances.
However, there can be no assurance that such estimates and
assumptions will prove to be correct. Many factors could cause
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
the factors which are discussed in greater detail in the "Risks and
Uncertainties" section of the Corporation's annual management's
discussion and analysis and its annual information form for Fiscal
2019, both available on SEDAR at www.sedar.com.
These factors are not intended to represent a complete list of
the factors that could affect the Corporation or Dollarcity;
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 and Dollarcity'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 September 12, 2019 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 financial outlook for Dollarcity for the 12‑month period
ending June 30, 2020 used
specifically to calculate the estimated purchase price range for
the Dollarcity transaction constitutes a forward-looking statement.
It is based on financial projections and is subject to risks and
uncertainties similar to those identified above.
The forward-looking statements contained in this press release
are expressly qualified by this cautionary statement.
About Dollarama
Dollarama is a recognized Canadian value retailer offering a
broad assortment of consumable products, general merchandise and
seasonal items both in-store and online. Our 1,250 locations across
Canada provide customers with
compelling value in convenient locations, including metropolitan
areas, mid-sized cities and small towns. Select consumable and
general merchandise products are also available by the full case
only through our online store at www.dollarama.com. Our quality
merchandise is sold at select, fixed price points up to
$4.00.
Dollarama also owns a 50.1% interest in Dollarcity, a growing
Latin American value retailer. Dollarcity offers a broad assortment
of consumable products, general merchandise and seasonal items at
select, fixed price points up to US$3.00 (or the equivalent in local currency)
through its 192 conveniently-located stores in Colombia, El
Salvador and Guatemala.
Selected
Consolidated Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
13-Week Periods
Ended
|
|
26-Week Periods
Ended
|
(dollars and
shares in thousands, except per share amounts)
|
|
August
4,
2019
|
|
July
29,
2018
|
|
August
4,
2019
|
|
July
29,
2018
|
|
|
$
|
|
$
Restated(i)
|
|
$
|
|
$
Restated(i)
|
Earnings
Data
|
|
|
|
|
|
|
|
|
Sales
|
|
946,405
|
|
868,453
|
|
1,774,441
|
|
1,624,522
|
Cost of
sales
|
|
533,162
|
|
477,950
|
|
1,012,307
|
|
902,935
|
Gross
profit
|
|
413,243
|
|
390,503
|
|
762,134
|
|
721,587
|
SG&A
|
|
131,651
|
|
118,270
|
|
253,774
|
|
231,417
|
Depreciation and
amortization
|
|
59,965
|
|
56,330
|
|
118,164
|
|
111,776
|
Operating
income
|
|
221,627
|
|
215,903
|
|
390,196
|
|
378,394
|
Net financing
costs
|
|
24,618
|
|
22,559
|
|
50,176
|
|
44,999
|
Earnings before
income taxes
|
|
197,009
|
|
193,344
|
|
340,020
|
|
333,395
|
Income
taxes
|
|
53,826
|
|
52,994
|
|
93,325
|
|
91,508
|
Net
earnings
|
|
143,183
|
|
140,350
|
|
246,695
|
|
241,887
|
|
|
|
|
|
|
|
|
|
Basic net earnings
per common share
|
|
$0.45
|
|
$0.43
|
|
$0.78
|
|
$0.74
|
Diluted net earnings
per common share
|
|
$0.45
|
|
$0.42
|
|
$0.78
|
|
$0.73
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
314,757
|
|
327,314
|
|
314,729
|
|
327,612
|
Diluted
|
|
318,533
|
|
331,645
|
|
318,220
|
|
332,024
|
|
|
|
|
|
|
|
|
|
Other
Data
|
|
|
|
|
|
|
|
|
Year-over-year sales
growth
|
|
9.0%
|
|
6.9%
|
|
9.2%
|
|
7.1%
|
Comparable store
sales growth (2)
|
|
4.7%
|
|
2.6%
|
|
5.2%
|
|
2.6%
|
Gross margin
(3)
|
|
43.7%
|
|
45.0%
|
|
43.0%
|
|
44.4%
|
SG&A as a % of
sales (3)
|
|
13.9%
|
|
13.6%
|
|
14.3%
|
|
14.2%
|
EBITDA
(1)
|
|
281,592
|
|
272,233
|
|
508,360
|
|
490,170
|
Operating margin
(3)
|
|
23.4%
|
|
24.9%
|
|
22.0%
|
|
23.3%
|
Capital
expenditures
|
|
30,362
|
|
26,834
|
|
61,042
|
|
91,108
|
Number of stores
(4)
|
|
1,250
|
|
1,178
|
|
1,250
|
|
1,178
|
Average store size
(gross square feet)(4)
|
|
10,262
|
|
10,164
|
|
10,262
|
|
10,164
|
Declared dividends
per common share
|
|
$0.044
|
|
$0.040
|
|
$0.088
|
|
$0.080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
at
|
|
|
|
|
|
|
August 4,
2019
|
|
February
3,
2019
|
|
|
|
|
|
|
$
|
|
$
Restated(i)
|
Statement of
Financial Position Data
|
|
|
|
|
|
|
|
|
Cash
|
|
|
|
|
|
139,052
|
|
50,371
|
Inventories
|
|
|
|
|
|
601,723
|
|
581,241
|
Total current
assets
|
|
|
|
|
|
806,660
|
|
688,520
|
Property, plant and
equipment
|
|
|
|
|
|
607,282
|
|
586,027
|
Right-of-use
assets
|
|
|
|
|
|
1,243,549
|
|
1,208,461
|
Total
assets
|
|
|
|
|
|
3,535,832
|
|
3,359,669
|
Total current
liabilities
|
|
|
|
|
|
680,808
|
|
443,234
|
Total non-current
liabilities
|
|
|
|
|
|
2,961,037
|
|
3,233,819
|
Total debt
(1)
|
|
|
|
|
|
1,882,291
|
|
1,907,383
|
Net debt
(1)
|
|
|
|
|
|
1,743,239
|
|
1,857,012
|
Shareholders'
deficit
|
|
|
|
|
|
(106,013)
|
|
(317,384)
|
|
|
|
|
|
|
|
|
|
(1)
|
In this press
release, EBITDA, EBITDA margin, total debt and net debt are
referred to as "non-GAAP measures". Non-GAAP measures are not
generally accepted measures under GAAP and do not have a
standardized meaning under GAAP. EBITDA, EBITDA margin, total debt
and net debt are reconciled below. The non-GAAP measures, as
calculated by the Corporation, may not be comparable to those of
other issuers and should be considered as a supplement to, not a
substitute for, or superior to, the comparable measures calculated
in accordance with GAAP.
|
|
|
|
We have included
non-GAAP measures to provide investors with supplemental measures
of our operating and financial performance. We believe that
non-GAAP measures are important supplemental metrics of operating
and financial performance because they eliminate items that have
less bearing on our operating and financial performance and thus
highlight trends in our core business that may not otherwise be
apparent when relying solely on GAAP measures. We also believe that
securities analysts, investors and other interested parties
frequently use non-GAAP measures in the evaluation of issuers, many
of which present non-GAAP measures when reporting their results.
Our management also uses non-GAAP measures in order to facilitate
operating and financial performance comparisons from period to
period, to prepare annual budgets, and to assess our ability to
meet our future debt service, capital expenditure and working
capital requirements.
|
|
|
|
13-Week Periods
Ended
|
|
26-Week Periods
Ended
|
(dollars in
thousands)
|
August 4,
2019
|
|
July 29,
2018
|
|
August 4,
2019
|
|
July 29,
2018
|
|
$
|
|
$
Restated(i)
|
|
$
|
|
$
Restated(i)
|
A reconciliation
of operating income to EBITDA is included below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
221,627
|
|
215,903
|
|
390,196
|
|
378,394
|
Add: Depreciation and
amortization
|
59,965
|
|
56,330
|
|
118,164
|
|
111,776
|
EBITDA
|
281,592
|
|
272,233
|
|
508,360
|
|
490,170
|
EBITDA margin
(1)(3)
|
29.8%
|
|
31.3%
|
|
28.6%
|
|
30.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation
of long-term debt to total debt is included below:
|
|
|
|
|
As
at
|
|
|
|
|
|
August 4,
2019
|
|
February
3,
2019
|
|
|
|
|
|
$
|
|
$
Restated(i)
|
Senior unsecured
notes bearing interest at:
|
|
|
|
|
|
|
|
Fixed annual rate of
3.55% payable in equal semi-annual instalments, maturing
November 6, 2023
|
|
|
|
|
500,000
|
|
500,000
|
Fixed annual rate of
2.203% payable in equal semi-annual instalments, maturing
November 10, 2022
|
|
|
|
|
250,000
|
|
250,000
|
Fixed annual rate of
2.337% payable in equal semi-annual instalments,
maturing
July 22, 2021
|
|
|
|
|
525,000
|
|
525,000
|
Variable rate equal to
3‑month bankers' acceptance rate (CDOR) plus 27 basis
points payable quarterly, maturing
February 1, 2021
|
|
|
|
|
300,000
|
|
300,000
|
Variable rate equal to
3‑month bankers' acceptance rate (CDOR) plus 59 basis
points payable quarterly, maturing March
16, 2020
|
|
|
|
|
300,000
|
|
300,000
|
Unsecured revolving
credit facility maturing September 27, 2024
|
|
|
|
|
-
|
|
25,000
|
Accrued interest on
senior unsecured notes
|
|
|
|
|
7,291
|
|
7,383
|
Total
debt
|
|
|
|
|
1,882,291
|
|
1,907,383
|
|
|
|
|
|
|
|
|
A reconciliation
of total debt to net debt is included below:
|
|
|
|
|
|
|
|
Total debt
|
|
|
|
|
1,882,291
|
|
1,907,383
|
Cash
|
|
|
|
|
(139,052)
|
|
(50,371)
|
Net
debt
|
|
|
|
|
1,743,239
|
|
1,857,012
|
|
|
|
|
|
|
|
|
|
|
(2)
|
Comparable store
sales growth is a measure of the percentage increase or decrease,
as applicable, of the sales of stores, including relocated and
expanded stores, open for at least 13 complete fiscal months
relative to the same period in the prior fiscal year.
|
(3)
|
Gross margin
represents gross profit divided by sales. SG&A as a percentage
of sales represents SG&A divided by sales. Operating margin
represents operating income divided by sales. EBITDA margin
represents EBITDA divided by sales.
|
(4)
|
At the end of the
period.
|
|
|
(i)
|
Restated to reflect
the adoption of IFRS 16.
|
View original
content:http://www.prnewswire.com/news-releases/dollarama-reports-fiscal-2020-second-quarter-results-300916835.html
SOURCE Dollarama Inc.