Canadian Tire's Q4 net income attributable to shareholders rises to C$508.5M from C$488.8M last year; revenue up to C$5.14B from C$4.87B as comp sales rise 11.3%, driven by strong performances across all banners

Sample article from our Consumer packaged goods (CPG)

TORONTO , February 17, 2022 (press release) –

  • Diluted Earnings Per Share (EPS) in the fourth quarter was up 5% to $8.34; full-year diluted EPS of $18.38, up by almost 50% vs 2020

  • Consolidated comparable sales1 grew 11% in the fourth quarter and 8% for the full year

Canadian Tire Corporation, Limited (TSX: CTC) (TSX: CTC.A) today released its fourth quarter and full-year results for the period ended January 1, 2022.

"Our exceptional results in the fourth quarter capped off an outstanding year for CTC in which we delivered record EPS and remarkable sales growth for the second consecutive year. Our fourth quarter comparable sales increase of 11% in 2021 reflects the continued strength and relevance of our unique multi-category assortment and the success of our strengthened omni-channel capabilities. We welcomed 2.4 million new Triangle Rewards members in 2021, many of whom joined through SportChek and Mark's and subsequently shopped at Canadian Tire for the first time. Our growth in membership, including more than 380,000 new Triangle credit card holders acquired by Canadian Tire Bank, demonstrates the value of our assets and our ability to meet our customers' needs, however they choose to shop us," said Greg Hicks, President and CEO, Canadian Tire Corporation.

"In another challenging year, our teams across CTC, Associate Dealers, and frontline employees continued to step up for our customers and build on the trust they have in our brand. I am proud of their commitment to make life in Canada better for our customers," added Hicks.  

FOURTH QUARTER HIGHLIGHTS

  • Q4 2021 marked the second consecutive year of outstanding comparable sales growth, with consolidated comparable sales, excluding Petroleum 1, up 11.3%, driven by strong performances across all banners

    • Canadian Tire Retail (CTR) comparable sales1 grew 9.8% vs 2020, with SportChek and Mark's up 15.9% and 15.0%, respectively

    • Consolidated revenue, excluding Petroleum1, was up 2.8%, despite strong comparatives and an extra week in the fourth quarter last year

    • Owned Brands represented 40% of sales1 across the banners, with Canvas and Noma leading the impressive growth

    • eCommerce sales1 reached approximately $500 million, with eCommerce penetration rate1 for retail banners at 9.5%, nearly double pre-pandemic levels

  • EPS performance reflected strong retail segment performance

    • Diluted EPS of $8.34 was up 4.6% compared to Q4 2020; normalized diluted EPS2 of $8.42 was up slightly on the fourth quarter of 2020

    • Retail segment Income before income taxes (IBT) increased $60.2 million, driven by exceptional sales performance and improved gross margins

    • A $52.6 million decrease in Financial Services IBT was mainly driven by increased receivables allowance and credit card acquisition costs

  • More than 770,000 members joined the Triangle program in the fourth quarter, up 23%

    • A more digitally-and mobile-engaged age segment (30-49 years old) represented 41% of new members

    • Acquisition of new credit card members was up 36% vs Q4 2020

    • Triangle members shopping cross-banner was at 41%, up more than 92bps

FULL-YEAR HIGHLIGHTS

  • 2021 marked a second consecutive year of significant growth in sales (including exceptional growth in eCommerce) and revenue, which drove remarkable growth in earnings

    • Consolidated comparable sales, excluding Petroleum were up 8.2% over prior year and up 18.3% vs 2019

    • eCommerce sales were up 29.9% vs 2020 to more than $2 billion in sales

    • Retail sales, excluding Petroleum1, were up 6.7% vs 2020 and 18.5% vs 2019

    • Retail revenue, excluding Petroleum1, was up 8.8% vs 2020 and 17.9% vs 2019

  • Full-year diluted EPS reached a record level, up 49.3% to $18.38; normalized diluted EPS was $18.91, up 45.5%

    • Outstanding returns on invested capital translated into an increase in Retail ROIC3, from 10.8% at the end of 2020 to 13.6% at the end of 2021

    • Retail segment IBT was up 59.2%, driven by exceptional sales performance and improved gross margins

    • Higher gross margin for the year, primarily attributable to lower net impairment losses, was the main driver of a 32.1% increase in Financial Services IBT

  • The Triangle program attracted 2.4 million new members and ended the year with 11 million Triangle members, including 2.2 million active credit cardholders

CONSOLIDATED OVERVIEW

FOURTH QUARTER

  • Consolidated retail sales1 increased $343.8 million in the fourth quarter, or 6.5% over the same period in 2020. Excluding Petroleum, consolidated retail sales were up 4.5% over the same period last year.

  • Consolidated revenue increased $263.1 million, or 5.4% in the fourth quarter. Excluding Petroleum, consolidated revenue increased 2.8%.

  • Consolidated IBT was $720.0 million, relatively unchanged from last year

  • Diluted EPS was $8.34 in the quarter, up $0.37 per share, or 4.6%, compared to the prior year. Normalized diluted EPS in the quarter was $8.42, a slight increase of $0.02 per share or 0.2%

  • Refer to the Q4 and Full-Year 2021 MD&A section 4.1.1 for information on normalizing items and for additional details on events that have impacted the Company in the quarter

FULL YEAR

  • Consolidated retail sales were $18,264.6 million, up $1,400.2 million or 8.3%, over the prior year. Consolidated retail sales, excluding Petroleum, increased 6.7%.

  • Consolidated revenue increased $1,421.1 million to $16,292.1 million for the full year, or 9.6%, over the prior year. Consolidated revenue, excluding Petroleum, increased 7.7%.

  • Consolidated IBT was $1,701.9 million, an increase of 45.2%

  • Diluted EPS was $18.38, an increase of $6.07 per share, or 49.3%, over the prior year.  Normalized diluted EPS of $18.91 increased $5.91 per share or 45.5%.

RETAIL SEGMENT OVERVIEW

FOURTH QUARTER

  • Retail segment revenue increased $247.8 million, or 5.4%, to $4,830.0 million. Retail segment revenue, excluding Petroleum1, increased 2.7%.

  • Canadian Tire Retail saw retail sales1 increase 3.4% and comparable sales were up 9.8%

  • SportChek retail sales1 were up 5.8% and comparable sales were up 15.9%

  • Mark's retail sales1 increased 9.6% and comparable sales were up 15.0%

  • Helly Hansen external revenue in the quarter was $250.4 million, up 27.6%

  • Income before income taxes increased $60.2 million to $638.1 million, or 10.4%. Normalized income before income taxes4 increased $31.4 million or 5.1%.

  • Refer to the Q4 and Full-Year 2021 MD&A sections 4.2 and 4.2.1 for information on normalizing items and for additional details on events that have impacted the Company in the quarter

FINANCIAL SERVICES OVERVIEW

FOURTH QUARTER

  • Gross average credit card receivables (GAAR)1 were up 6.3% in Q4, driven primarily by an increase in active accounts

  • Credit card sales1 grew 24.8% in the quarter

  • Gross margin decreased $35.9 million, or 17.4%, compared to the same period in 2020, mainly driven by higher net impairment losses primarily due to a $29.8 million increase in the allowance for loans receivable, driven by the strong growth in receivables

  • Income before income taxes was $63.0 million, down 45.5% in the fourth quarter, due to the decrease in gross margin and higher credit card acquisition and marketing costs

  • Refer to the Q4 and Full-Year 2021 MD&A sections 4.3 and 4.3.1 for additional details on events that have impacted the Company in the quarter

CT REIT OVERVIEW

FOURTH QUARTER

  • As disclosed in the Q4 and year-end 2021 CT REIT earnings release on February 15, 2022, CT REIT announced four new investments, which will require $71 million to complete and will add over 459,000 square feet of gross leasable area to the portfolio, including the development of a new distribution centre in Calgary, Alberta, built to net zero standards.

  • Adjusted Funds from Operations (AFFO) per unit5 for the fourth quarter on a diluted basis was up 5.8%. Net income was $125.4 million for the fourth quarter.

  • Refer to the Q4 and Full-Year 2021 MD&A sections 4.4 and 4.4.1 for additional details on events that have impacted the Company in the quarter

CAPITAL ALLOCATION

CAPITAL EXPENDITURES

  • Operating capital expenditures6 were $669.8 million for the year, an increase of $358.8 million

  • Total capital expenditures were $803.9 million for the year, an increase of $351.5 million

QUARTERLY DIVIDEND

  • The Company has declared dividends payable to holders of Class A Non-Voting Shares and Common Shares at a rate of $1.300 per share payable on June 1, 2022 to shareholders of record as of April 30, 2022. The dividend is considered an "eligible dividend" for tax purposes.

SHARE PURCHASES

  • On November 11, 2021, the Company announced its intention to purchase up to $400 million of its Class A Non-Voting Shares (the "2021-22 Share Purchase Intention"), in excess of the amount required for anti-dilutive purposes by the end of fiscal 2022. To date, the Company has purchased $211.0 million of its Class A Non-Voting Shares in partial fulfilment of its 2021-22 Share Purchase Intention.

NORMAL COURSE ISSUER BID

  • The Company announced its intention to make a normal course issuer bid (the "2022-23 NCIB") to purchase from March 2, 2022 to March 1, 2023 up to 5.3 million Class A Non-Voting Shares (the "Shares"), which represents approximately 9.9% of the 53.7 million approximate public float of Shares issued and outstanding as at February 16, 2022.   

  • The Company intends to purchase Shares under the 2022-23 NCIB for two purposes: (i) to fulfill the remainder of the 2021-22 Share Purchase Intention as part of its capital management plan; and (ii) to offset the dilutive effect of the issuance of Shares pursuant to its dividend reinvestment and stock option plans, consistent with the Company's policy.

  • Purchases of Shares pursuant to the 2022-23 NCIB will be made by means of open market transactions through the facilities of the TSX and/or alternative Canadian trading systems, if eligible, at the market price of the Shares at the time of purchase or as otherwise permitted under the rules of the TSX and applicable securities laws. Purchases may also be made by way of private agreements or share repurchase programs under issuer bid exemption orders issued by securities regulatory authorities. Any private purchase made under an exemption order issued by a securities regulatory authority will generally be at a discount to the prevailing market price.

  • For open market transactions, the Company will be subject to a daily purchase limit of 46,726 Shares, which represents 25% of 186,905, the average daily trading volume of the Shares on the TSX, net of purchases made by the Company through the TSX, for the six months ended January 31, 2022. The Shares purchased by the Company pursuant to the 2022-23 NCIB will be restored to the status of authorized but unissued shares.

  • The Company's proposed 2022-23 NCIB is subject to regulatory approval.

  • Under the Company's normal course issuer bid which began on March 2, 2021 and expires on March 1, 2022 (the "2021-22 NCIB"), the Company received approval to purchase up to 5.4 million Shares. To date, the Company has purchased a total of 1,261,715 Shares by means of open market transactions through the facilities of the TSX and alternative Canadian trading systems under the Company's 2021-22 NCIB, at the volume weighted average price of $178.97.

AUTOMATIC SECURITIES PURCHASE PLAN

  • The Company announced that it will enter into an automatic securities purchase plan (the "ASPP") with a designated broker to facilitate purchases of Class A Shares under its 2022-23 NCIB at times when the Company would ordinarily not be permitted to purchase its securities due to regulatory restrictions and customary self-imposed black-out periods. Purchases made pursuant to the ASPP will be made by the Company's designated broker based upon the parameters prescribed by the TSX, applicable Canadian securities laws and the terms of the written agreement between the Company and its designated broker. The ASPP will commence on March 2, 2022 and will terminate on the earliest of the date on which: (i) the purchase limit under the 2022-23 NCIB has been reached; (ii) the 2022-23 NCIB expires; and (iii) the Company terminates the ASPP in accordance with its terms. The ASPP constitutes an "automatic securities purchase plan" under applicable Canadian securities laws. The Company's proposed ASPP is subject to regulatory approval.

NON-GAAP FINANCIAL MEASURES AND RATIOS AND SUPPLEMENTARY FINANCIAL MEASURES

For information concerning the Company's non-GAAP financial measures and ratios and supplementary financial measures, refer to the information below as well as Sections 9.2 (Non-GAAP Financial Measures and Ratios) and 9.3 (Supplementary Financial Measures) of the Company's MD&A for the Fourth Quarter and Full-Year ended January 1, 2022, which is available on SEDAR at www.sedar.com and is incorporated by reference herein.

Supplementary Financial Measures

1.     This press release contains supplementary financial measures. See Section 9.3 Supplementary Financial Measures of the Company's MD&A for the Fourth Quarter and Full-Year ended January 1, 2022 for further information regarding the composition of these measures.

Non-GAAP Financial Measures and Non-GAAP Ratios

The Company prepares and presents its financial information on a GAAP basis. Management uses many measures to assess performance, including non-GAAP measures and non-GAAP ratios. Non-GAAP measures and non-GAAP ratios have no standardized meanings under GAAP and may not be comparable to similar measures of other companies. 

This press release contains specified Non-GAAP Financial Measures and Non-GAAP Ratios, as follows: 

2.  Normalized Diluted Earnings per Share (EPS)
Normalized Diluted EPS, a non-GAAP ratio, is calculated by dividing Normalized Net Income Attributable to Shareholders, a non-GAAP financial measure, by total diluted shares of the Company. For information about these measures see section 9.2 of the Company's MD&A for the Fourth Quarter and Full-Year ended January 1, 2022.

The following table is a reconciliation of normalized net income attributable to shareholders of the Company to the respective GAAP measures:

(C$ in millions)

Q4 2021

Q4 2020

2021

2020

2019

Net income

$

535.7

$

521.8

$

1,260.7

$

862.6

$

894.8

Net income attributable to shareholders

508.5

488.8

1,127.6

751.8

778.4

Add normalizing items:

 

 

 

 

 

Operational Efficiency program

4.8

26.6

30.1

42.3

25.1

Party City:

 

 

 

 

 

Acquisition-related costs

1.6

Fair value adjustment for inventories acquired

1.8

Normalized net income

$

540.5

$

548.4

$

1,290.8

$

904.9

$

923.3

Normalized net income attributable to
shareholders

$

513.3

$

515.4

$

1,157.7

$

794.1

$

806.9

Normalized diluted EPS

$

8.42

$

8.40

$

18.91

$

13.00

$

13.04

3.      Retail Return on Invested Capital (ROIC)
Retail ROIC is calculated as Retail return divided by the Retail average invested capital. Retail ROIC is a non-GAAP ratio, while Retail return and Retail average invested capital are non-GAAP financial measures. For information about these measures see section 9.2 of the Company's MD&A for the Fourth Quarter and Full-Year ended January 1, 2022.

(C$ in millions)

2021

2020

Income before income taxes

$

1,701.9

$

1,172.1

Less:

 

 

Financial Services income before income taxes

432.4

327.3

CT REIT income before income taxes

456.9

 

183.3

Eliminations and adjustments

(363.1)

(76.8)

Retail income before income taxes

$

1,175.7

$

738.3

Add normalizing items:

 

 

Operational Efficiency program

40.9

56.7

Retail normalized income before income taxes

$

1,216.6

$

795.0

Less:

 

 

Retail intercompany adjustments1

196.5

192.8

Add:

 

 

Retail interest expense2

251.8

283.4

Retail depreciation of right-of-use assets

541.5

520.0

Retail effective tax rate

27.1 %

28.3 %

Add: Retail taxes

(491.4)

(397.7)

Retail return

$

1,322.0

$

1,007.9

 

 

 

Average total assets

$

21,364.1

$

19,983.4

Less:

 

 

Average Financial Services assets

7,653.0

7,000.0

Average CT REIT assets

6,343.1

6,124.4

Average Eliminations and adjustments

(8,970.1)

(8,814.0)

Average Retail assets

$

16,338.1

$

15,673.0

Less:

 

 

Average Retail intercompany adjustments1

3,421.2

3,389.0

Average Retail trade payables and accrued liabilities3

2,519.8

2,347.1

Average Franchise Trust assets

507.6

576.6

Average Retail excess cash

167.4

14.0

Average Retail invested capital

$

9,722.1

$

9,346.3

Retail ROIC

13.6 %

10.8 %

1

Intercompany adjustments include intercompany income received from CT REIT which is included in the Retail segment, and intercompany investments made by the Retail segment in CT REIT and CTFS.

2

Excludes Franchise Trust.

3

Trade payables and accrued liabilities include trade and other payables, short-term derivative liabilities, short-term provisions and income tax payables.

4.      Consolidated Normalized Income Before Income Taxes and Retail Normalized Income Before Income Taxes
Consolidated Normalized Income Before Income Taxes and Retail Normalized Income Before Income Taxes are non-GAAP financial measures. For more information about these measures, see section 9.2 of the Company's MD&A for the Fourth Quarter and Full-Year ended January 1, 2022.

The following table is a reconciliation of Consolidated Income Before Income Taxes to Consolidated Normalized Income Before Income Taxes:

(C$ in millions)

Q4 2021

Q4 2020

2021

2020

Income before income taxes

$

720.0

$

718.6

$

1,701.9

$

1,172.1

Add normalizing items:

 

 

 

 

Operational Efficiency program

6.5

35.3

40.9

56.7

Normalized income before income taxes

$

726.5

$

753.9

$

1,742.8

$

1,228.8

The following table is a reconciliation of Retail Income Before Income Taxes to Retail Normalized Income Before Income Taxes:

(C$ in millions)

Q4 2021

Q4 2020

2021

2020

Income before income taxes

$

720.0

$

718.6

$

1,701.9

$

1,172.1

Less:

 

 

 

 

Financial Services income before income taxes

63.0

115.6

432.4

327.3

CT REIT income before income taxes

125.4

14.0

456.9

183.3

Eliminations and adjustments

(106.5)

11.1

(363.1)

(76.8)

Retail income before income taxes

$

638.1

$

577.9

$

1,175.7

$

738.3

Add normalizing items:

 

 

 

 

Operational Efficiency program

6.5

35.3

40.9

56.7

Retail normalized income before income taxes

$

644.6

$

613.2

$

1,216.6

$

795.0

5.     Adjusted Funds From Operations (AFFO) per unit
AFFO per unit is a non-GAAP ratio that is comprised of AFFO divided by the weighted average units outstanding diluted of CT REIT. Units comprise both trust units and class B units. AFFO is a non-GAAP financial measure. For more information about these measures, see section 9.2 of the Company's MD&A for the Fourth Quarter and Full-Year ended January 1, 2022.

The following table reconciles Income before income taxes to AFFO:

(C$ in millions)

Q4 2021

Q4 2020

2021

2020

Income before income taxes

$

720.0

$

718.6

$

1,701.9

$

1,172.1

Less:

 

 

 

 

Retail income before income taxes

638.1

577.9

1,175.7

738.3

Financial Services income before income taxes

63.0

115.6

432.4

327.3

Eliminations and adjustments

(106.5)

11.1

(363.1)

(76.8)

CT REIT income before income taxes

$

125.4

$

14.0

$

456.9

$

183.3

Add:

 

 

 

 

CT REIT fair value (gain) loss adjustment

(53.2)

53.9

(169.9)

87.4

CT REIT deferred taxes

(0.5)

(0.6)

(0.1)

CT REIT lease principal payments on right-of-use assets

(0.2)

(0.3)

(1.1)

(0.8)

CT REIT fair value of equity awards

0.2

0.8

1.0

0.1

CT REIT internal leasing expense

0.2

0.3

0.8

0.8

CT REIT funds from operations

$

71.9

$

68.1

$

287.6

$

270.8

Add:

 

 

 

 

CT REIT properties straight-line rent adjustment

(1.5)

(2.2)

(6.1)

(10.0)

CT REIT capital expenditure reserve

(6.3)

(6.1)

(24.9)

(24.3)

CT REIT adjusted funds from operations

$

64.1

$

59.8

$

256.6

$

236.5

6.     Operating Capital Expenditures
Operating capital expenditures is a non-GAAP financial measure. For more information about this measure, see section 9.2 of the Company's MD&A for the Fourth Quarter and Full-Year ended January 1, 2022.

The following table reconciles Total additions from the Investing activities reported in the Consolidated Statement of Cash Flows to Operating capital expenditures:

(C$ in millions)

2021

2020

Total additions1

$

778.8

$

436.5

Add: Accrued additions

25.1

17.3

Less:

 

 

Business combinations, intellectual properties and tenant allowances

1.4

CT REIT acquisitions and developments excluding vend-ins from CTC

134.1

141.4

Operating capital expenditures

$

669.8

$

311.0

1

This line appears on the Consolidated Statement of Cash Flows under Investing activities

To view a PDF version of Canadian Tire Corporation's full quarterly earnings report please see:
https://mma.prnewswire.com/media/1748712/CANADIAN_TIRE_CORPORATION__LIMITED_Canadian_Tire_Corporation_Rep.pdf

FORWARD-LOOKING STATEMENTS
Certain statements made in this press release may constitute forward-looking information under applicable securities laws. These statements are being provided for the purposes of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our anticipated financial position, results of operations and operating environment. Readers are cautioned that such information may not be appropriate for other purposes. Although CTC believes that the forward-looking information in this press release is based on information, assumptions and beliefs which are current, reasonable and complete, this information is necessarily subject to a number of factors, risks and uncertainties, including as a result of COVID-19, that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking information. For more information on the risks, uncertainties and assumptions that could cause the CTC's actual results to differ from current expectations, refer to section 10.0 (Key Risks and Risk Management) of our Management's Discussion and Analysis for the Fourth Quarter and Full Year ended January 1, 2022 as well as CTC's other public filings, available at www.sedar.com and at https://investors.canadiantire.ca. CTC does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, except as is required by applicable securities laws.

CONFERENCE CALL
Canadian Tire will conduct a conference call to discuss information included in this news release and related matters at 8:00 a.m. ET on February 17, 2022. The conference call will be available simultaneously and in its entirety to all interested investors and the news media through a webcast at https://investors.canadiantire.ca and will be available through replay at this website for 12 months.

ABOUT CANADIAN TIRE CORPORATION
Canadian Tire Corporation, Limited, (TSX: CTC.A) (TSX: CTC) or "CTC", is a group of companies that includes a Retail segment, a Financial Services division and CT REIT. Our retail business is led by Canadian Tire, which was founded in 1922 and provides Canadians with products for life in Canada across its Living, Playing, Fixing, Automotive and Seasonal & Gardening divisions. Party City, PartSource and Gas+ are key parts of the Canadian Tire network. The Retail segment also includes Mark's, a leading source for casual and industrial wear; Pro Hockey Life, a hockey specialty store catering to elite players; and SportChek, Hockey Experts, Sports Experts and Atmosphere, which offer the best active wear brands. The more than 1,700 retail and gasoline outlets are supported and strengthened by CTC's Financial Services division and the tens of thousands of people employed across Canada and around the world by CTC and its local dealers, franchisees and petroleum retailers. In addition, CTC owns and operates Helly Hansen, a leading technical outdoor brand based in Oslo, Norway. For more information, visit Corp.CanadianTire.ca.

FOR MORE INFORMATION
Media : Jane Shaw, (416) 480-8581, jane.shaw@cantire.com 
Investors: Karen Keyes, (647) 518-4461, karen.keyes@cantire.com

Consolidated Balance Sheets (unaudited)

As at

 

 

(C$ in millions)

January 1, 2022

January 2, 2021

 

 

 

ASSETS

 

 

Cash and cash equivalents

$

1,751.7

$

1,327.2

Short-term investments

606.2

643.0

Trade and other receivables

970.4

973.6

Loans receivable

5,613.2

5,031.8

Merchandise inventories

2,480.6

2,312.9

Income taxes recoverable

1.7

21.9

Prepaid expenses and deposits

216.1

193.8

Assets classified as held for sale

6.7

42.6

Total current assets

11,646.6

10,546.8

Long-term receivables and other assets

593.5

631.9

Long-term investments

175.1

146.2

Goodwill and intangible assets

2,372.2

2,372.8

Investment property

460.7

385.8

Property and equipment

4,549.3

4,298.2

Right-of-use assets

1,786.1

1,696.7

Deferred income taxes

218.7

298.7

Total assets

$

21,802.2

$

20,377.1

 

 

 

LIABILITIES

 

 

Deposits

1,908.4

1,228.0

Trade and other payables

2,914.3

2,508.3

Provisions

195.2

196.7

Short-term borrowings

108.2

165.4

Loans

427.5

506.6

Current portion of lease liabilities

359.0

329.9

Income taxes payable

157.6

120.4

Current portion of long-term debt

719.8

150.5

Total current liabilities

6,790.0

5,205.8

Long-term provisions

64.1

70.3

Long-term debt

3,558.7

4,115.7

Long-term deposits

1,985.3

2,281.7

Long-term lease liabilities

1,916.8

1,896.6

Deferred income taxes

125.9

122.0

Other long-term liabilities

850.6

850.3

Total liabilities

15,291.4

14,542.4

 

 

 

EQUITY

 

 

Share capital

593.6

597.0

Contributed surplus

2.9

2.9

Accumulated other comprehensive (loss)

(169.2)

(237.7)

Retained earnings

4,696.5

4,136.9

Equity attributable to shareholders of Canadian Tire Corporation

5,123.8

4,499.1

Non-controlling interests

1,387.0

1,335.6

Total equity

6,510.8

5,834.7

Total liabilities and equity

$

21,802.2

$

20,377.1

Consolidated Statements of Income (unaudited)

(C$ in millions, except per share amounts)

13 weeks ended
January 1, 2022

14 weeks ended
January 2, 2021

52 weeks ended
January 1, 2022

53 weeks ended
January 2, 2021

 

 

 

 

 

Revenue

$

5,137.6

$

4,874.5

$

16,292.1

$

14,871.0

Cost of producing revenue

3,190.9

3,024.6

10,456.9

9,794.4

 

 

 

 

 

Gross margin

1,946.7

1,849.9

5,835.2

5,076.6

 

 

 

 

 

Other expense (income)

5.2

18.9

(23.5)

48.7

Selling, general and administrative expenses

1,167.4

1,053.6

3,934.3

3,599.3

Net finance costs

54.1

58.8

222.5

256.5

 

 

 

 

 

Income before income taxes

720.0

718.6

1,701.9

1,172.1

 

 

 

 

 

Income taxes

184.3

196.8

441.2

309.5

Net income

$

535.7

$

521.8

$

1,260.7

$

862.6

 

 

 

 

 

Net income attributable to:

 

 

 

 

Shareholders of Canadian Tire Corporation

$

508.5

$

488.8

$

1,127.6

$

751.8

Non-controlling interests

27.2

33.0

133.1

110.8

 

$

535.7

$

521.8

$

1,260.7

$

862.6

Basic earnings per share

$

8.40

$

8.04

$

18.56

$

12.35

Diluted earnings per share

$

8.34

$

7.97

$

18.38

$

12.31

Weighted average number of Common and Class A Non-Voting Shares outstanding:  

 

 

 

 

Basic

60,553,762

60,807,577

60,744,440

60,896,809

Diluted

61,008,556

61,358,623

61,345,072

61,090,111

Consolidated Statements of Comprehensive Income (unaudited)

For the

 

 

(C$ in millions)

13 weeks ended
January 1, 2022

14 weeks ended
January 2, 2021

52 weeks ended
January 1, 2022

53 weeks ended
January 2, 2021

 

 

 

 

 

Net income

$

535.7

$

521.8

$

1,260.7

$

862.6

 

 

 

 

 

Other comprehensive income (loss), net of taxes

 

 

 

 

 

 

 

 

 

Items that may be reclassified subsequently to net income:

 

 

 

 

Net fair value (losses) gains on hedging instruments entered into for cash flow hedges not subject to basis adjustment

(4.1)

(1.5)

5.4

(34.7)

Deferred cost of hedging not subject to basis adjustment – Changes in fair value of the time value of an option in relation to time-period related hedged items

1.4

(8.4)

1.4

(12.0)

Reclassification of losses to income

2.4

1.8

14.1

2.8

Currency translation adjustment

(22.0)

48.8

(34.7)

(13.0)

Item that will not be reclassified subsequently to net income:

 

 

 

 

Actuarial losses

(0.7)

(10.7)

(0.7)

(10.7)

Net fair vale gains (losses) on hedging instruments entered into for cash flow hedges subject to basis adjustment

4.4

(84.3)

5.7

(29.9)

Other comprehensive income (loss)

(18.6)

(54.3)

(8.8)

(97.5)

 

 

 

 

 

Other comprehensive (loss) income attributable to:

 

 

 

 

Shareholders of Canadian Tire Corporation

$

(18.4)

$

(52.4)

$

(12.9)

$

(88.4)

Non-controlling interests

(0.2)

(1.9)

4.1

(9.1)

 

$

(18.6)

$

(54.3)

$

(8.8)

$

(97.5)

Comprehensive income

$

517.1

$

467.5

$

1,251.9

$

765.1

 

 

 

 

 

Comprehensive income attributable to:

 

 

 

 

Shareholders of Canadian Tire Corporation

$

490.1

$

436.4

$

1,114.7

$

663.4

Non-controlling interests

27.0

31.1

137.2

101.7

 

$

517.1

$

467.5

$

1,251.9

$

765.1

Consolidated Statements of Cash Flows (unaudited)

For the

 

 

(C$ in millions)

13 weeks ended
January 1, 2022

14 weeks ended
January 2, 2021

52 weeks ended
January 1, 2022

53 weeks ended
January 2, 2021

 

 

 

 

 

Cash (used for) generated from:

 

 

 

 

 

 

 

 

 

Operating activities

 

 

 

 

Net income

$

535.7

$

521.8

$

1,260.7

$

862.6

Adjustments for:

 

 

 

 

Depreciation of property and equipment, investment property and right-of-use assets

148.3

147.5

581.9

582.6

Impairment on property and equipment, right-of-use and intangible assets

6.2

19.0

5.3

46.9

Income taxes

184.3

196.8

441.2

309.5

Net finance costs

54.1

58.8

222.5

256.5

Amortization of intangible assets

30.0

27.9

119.6

112.7

Loss (gain) on disposal of property and equipment, investment property, assets held for sale and right-of-use assets

0.1

(6.2)

(18.6)

(12.1)

Total except as noted below

958.7

965.6

2,612.6

2,158.7

Interest paid

(43.6)

(55.3)

(233.0)

(272.6)

Interest received

4.3

3.4

13.9

15.8

Income taxes paid

(53.0)

(130.7)

(333.9)

(200.5)

Change in loans receivable

(226.9)

(9.7)

(486.8)

925.1

Change in operating working capital and other

501.6

12.0

241.6

(183.7)

Cash generated from operating activities

1,141.1

785.3

1,814.4

2,442.8

 

 

 

 

 

Investing activities

 

 

 

 

Additions to property and equipment and investment property

(298.7)

(140.9)

(630.6)

(307.2)

Additions to intangible assets

(44.8)

(26.1)

(148.2)

(129.3)

Total additions

(343.5)

(167.0)

(778.8)

(436.5)

Acquisition of short-term investments

(427.7)

(242.6)

(1,185.4)

(710.0)

Proceeds from the maturity and disposition of short-term investments

434.3

32.0

1,290.2

328.8

Proceeds on disposition of property and equipment, investment property and assets held for sale

(0.4)

9.8

61.7

13.3

Lease payments received for finance subleases (principal portion)

13.2

4.2

23.8

16.8

Acquisition of long-term investments and other

(33.5)

8.4

(148.0)

(60.4)

Cash used for investing activities

(357.6)

(355.2)

(736.5)

(848.0)

 

 

 

 

 

Financing activities

 

 

 

 

Dividends paid

(67.7)

(65.5)

(271.1)

(262.9)

Distributions paid to non-controlling interests

(16.4)

(30.7)

(103.5)

(96.2)

Total dividends and distributions paid

(84.1)

(96.2)

(374.6)

(359.1)

Net repayment of short-term borrowings

(6.6)

(398.5)

(57.2)

(284.6)

Issuance of loans

24.5

84.2

292.3

248.9

Repayment of loans

(89.6)

(129.9)

(371.4)

(363.6)

Issuance of long-term debt

9.6

159.6

1,198.6

Repayment of long-term debt

(0.1)

(0.1)

(150.4)

(1,450.8)

Payment of lease liabilities (principal portion)

(97.4)

(113.3)

(365.3)

(367.9)

Payment of transaction costs related to long-term debt

(0.6)

(1.0)

(2.8)

Purchase of Class A Non-Voting Shares

(120.1)

(3.6)

(131.1)

(111.5)

Payments on financial instruments

(4.5)

(0.5)

(33.7)

(30.9)

Change in deposits

(198.9)

259.6

379.4

1,061.0

Cash used for financing activities

(567.2)

(398.9)

(653.4)

(462.7)

Cash generated in the period

216.3

31.2

424.5

1,132.1

Cash and cash equivalents, net of bank indebtedness, beginning of period

1,535.4

1,296.0

1,327.2

195.1

Cash and cash equivalents, net of bank indebtedness, end of period

$

1,751.7

$

1,327.2

$

1,751.7

$

1,327.2

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