BRAMPTON, ON, July 25, 2012 /CNW/ - Loblaw Companies Limited (TSX: L)
("Loblaw" or the "Company") today announced its unaudited financial
results for the second quarter ended June 16, 2012. The Company's
second quarter report will be available in the Investor Centre section
of the Company's website at loblaw.ca and will be filed with SEDAR and available at sedar.com.
2012 Second Quarter Summary(1)
-
Basic net earnings per common share of $0.57, down 18.6% compared to the
second quarter of 2011.
-
EBITDA margin(2) of 6.4% compared to 6.9% in the second quarter of 2011.
-
Revenue of $7,375 million, an increase of 1.3% over the second quarter
of 2011.
-
Retail sales and same-store sales growth of 1.1% and 0.2%, respectively,
compared to the second quarter of 2011.
"In the second quarter we continued to execute our plan," said
Galen G.
Weston
, Executive Chairman, Loblaw Companies Limited. "We are beginning
to gain traction on the top-line, particularly in our core food and
drug businesses, as we continued our disciplined approach to improving
our customer proposition. We remain confident that our ongoing
investments in infrastructure, including the completion of our IT
implementation, will enable efficiencies and expense leverage to drive
future earnings growth. Our outlook for 2012 is unchanged - we continue
to expect full-year net earnings to be down year-over-year."
Consolidated Quarterly Results of Operations
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For the periods ended June 16, 2012 and
June 18, 2011 (unaudited)
(millions of Canadian dollars except where
otherwise indicated)
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2012
(12 weeks)
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2011
(12 weeks)
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$ Change
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% Change
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2012
(24 weeks)
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2011
(24 weeks)
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$ Change
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% Change
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Revenue
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$
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7,375
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$
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7,278
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$
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97
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1.3%
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$
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14,312
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$
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14,150
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$
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162
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1.1%
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Operating income
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290
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345
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(55)
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(15.9%)
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529
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648
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(119)
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(18.4%)
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Net earnings
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159
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197
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(38)
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(19.3%)
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285
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359
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(74)
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(20.6%)
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Basic net earnings per common share ($)
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0.57
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0.70
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(0.13)
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(18.6%)
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1.01
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1.28
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(0.27)
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(21.1%)
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Operating margin
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3.9%
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4.7%
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3.7%
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4.6%
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EBITDA(2)
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$
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469
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$
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504
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$
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(35)
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(6.9%)
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$
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878
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$
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959
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$
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(81)
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(8.4%)
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EBITDA margin(2)
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6.4%
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6.9%
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6.1%
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6.8%
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(1)
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This News Release contains forward-looking information. See
Forward-Looking Statements in this News Release for a discussion of
material factors that could cause actual results to differ materially
from the conclusions, forecasts and projections herein and of the
material factors and assumptions that were used when making these
statements. This News Release should be read in conjunction with Loblaw
Companies Limited's filings with securities regulators made from time
to time, all of which can be found at sedar.com and at loblaw.ca.
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(2)
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See Non-GAAP Financial Measures in this News Release.
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The $97 million increase in revenue compared to the second quarter of
2011 was driven by increases in both the Company's Retail and Financial
Services operating segments, as described below.
-
As previously disclosed, for full-year 2012, the Company expects that
$40 million of incremental investment in its customer proposition will
not be covered by operations. Of this amount, $15 million was incurred
in the second quarter of 2012, $10 million of which was in gross profit
and $5 million in labour. Year-to-date, the amount is an estimated $25
million.
-
Operating income decreased by $55 million compared to the second quarter
of 2011 as a result of a decrease in Retail operating income of $58
million and an increase in Financial Services operating income of $3
million. Operating margin was 3.9% for the second quarter of 2012
compared to 4.7% in the same quarter in 2011. The $58 million decrease
in Retail operating income was mainly driven by an increase in labour
and other operating costs, declines in gross profit and foreign
exchange gains and the notable items as described below, partially
offset by changes in the value of the Company's investments in its
franchise business.
-
Consolidated operating income included the following notable items:
-
Incremental costs of $20 million related to investments in information
technology ("IT") and supply chain, including the following charges:
-
$66 million (2011 - $60 million) related to IT costs;
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$52 million (2011 - $38 million) related to depreciation and
amortization;
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$6 million (2011 - $2 million) related to changes in the distribution
network; and
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$2 million (2011 - $6 million) related to other supply chain projects
costs;
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A $10 million charge (2011 - nil) related to the transition of certain
Ontario conventional stores to the more cost effective and efficient
operating terms under collective agreements ratified in the third
quarter of 2010;
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A $5 million charge (2011 -$15 million) related to the effect of
share-based compensation net of equity forwards; and
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A nil charge (2011 - $15 million) related to certain prior years'
commodity tax matters.
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The decrease in net earnings of $38 million compared to the second
quarter of 2011 was primarily due to the decrease in operating income
partially offset by a decline in the Company's effective income tax
rate.
-
Basic net earnings per common share were impacted by the following
notable items:
-
A $0.05 charge related to incremental investments in IT and supply
chain;
-
A $0.02 charge (2011 - nil) related to the transition of certain Ontario
conventional stores to the operating terms under collective agreements
ratified in 2010;
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A $0.02 charge (2011 - $0.04) related to the effect of share-based
compensation net of equity forwards; and
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A nil charge (2011 - $0.04) related to certain prior years' commodity
tax matters.
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In the second quarter of 2012, the Company invested $233 million in
capital expenditures.
The consolidated quarterly results by reportable operating segments were
as follows:
Retail Results of Operations
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For the periods ended June 16, 2012 and
June 18, 2011 (unaudited)
(millions of Canadian dollars except where
otherwise indicated)
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2012
(12 weeks)
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2011
(12 weeks)
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$ Change
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% Change
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2012
(24 weeks)
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2011
(24 weeks)
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$ Change
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% Change
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Sales
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$
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7,236
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$
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7,157
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$
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79
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1.1%
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$
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14,044
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$
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13,914
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$
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130
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0.9%
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Gross profit
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1,611
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1,626
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(15)
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(0.9%)
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3,140
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3,180
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(40)
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(1.3%)
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Operating income
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275
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333
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(58)
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(17.4%)
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500
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618
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(118)
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(19.1%)
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Same-store sales growth (decline)
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0.2%
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(0.4%)
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(0.3%)
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(0.3%)
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Gross profit percentage
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22.3%
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22.7%
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22.4%
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22.9%
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Operating margin
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3.8%
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4.7%
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3.6%
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4.4%
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In the second quarter of 2012, the increase of $79 million, or 1.1%, in
Retail sales over the same period in the prior year was impacted by the
following factors:
-
Same-store sales growth was 0.2% (2011 - 0.4% decline);
-
Sales growth in food was moderate;
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Sales growth in drugstore was modest;
-
Gas bar sales declined marginally;
-
Sales in general merchandise, excluding apparel, declined moderately;
-
Sales in apparel were flat;
-
The Company experienced modest average quarterly internal food price
inflation during the second quarter of 2012 and moderate average
quarterly food price inflation during the second quarter of 2011, lower
than the average quarterly national food price inflation of 2.5% (2011
- 4.0%) as measured by "The Consumer Price Index for Food Purchased
from Stores" ("CPI"). CPI does not necessarily reflect the effect of
inflation on the specific mix of goods sold in Loblaw stores; and
-
22 corporate and franchise stores were opened and seven corporate and
franchise stores were closed in the last twelve months, resulting in a
net increase of 0.4 million square feet, or 0.8%.
-
In the second quarter of 2012, gross profit decreased by $15 million
compared to the second quarter of 2011 and gross profit percentage was
22.3%, a decline from 22.7% in the second quarter of 2011. These
declines were primarily driven by higher input costs outpacing internal
food price inflation and increased transportation costs. Higher input
costs that were not entirely passed on to the consumer included an
estimated $10 million of the incremental investment in the Company's
customer proposition that was not covered by operations. The decline in
gross profit percentage was also attributable to a higher proportion of
food sales.
-
Operating income decreased by $58 million compared to the second quarter
of 2011 and operating margin was 3.8% for the second quarter of 2012
compared to 4.7% in the same period in 2011. In addition to the notable
items described in the Consolidated Quarterly Results of Operations
above, operating income and operating margin were negatively impacted
by an increase in labour and other operating costs and decreases in
gross profit and foreign exchange gains, partially offset by changes in
the value of the Company's investments in its franchise business. The
increase in labour costs included an estimated $5 million of the
incremental investment in the Company's customer proposition related to
improved service in stores that was not covered by operations.
Financial Services Results of Operations
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For the periods ended June 16, 2012 and
June 18, 2011 (unaudited)
(millions of Canadian dollars except where
otherwise indicated)
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2012
(12 weeks)
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2011
(12 weeks)
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$ Change
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% Change
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2012
(24 weeks)
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2011
(24 weeks)
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$ Change
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% Change
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Revenue
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$
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139
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$
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121
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$
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18
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14.9%
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$
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268
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$
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236
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$
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32
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13.6%
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Operating income
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15
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12
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3
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25.0%
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29
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30
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(1)
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(3.3%)
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Earnings before income taxes
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4
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2
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2
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100.0%
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8
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7
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1
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14.3%
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As at
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As at
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(millions of Canadian dollars except where otherwise indicated)
(unaudited)
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June 16, 2012
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June 18, 2011
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$ Change
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% Change
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Average quarterly net credit card receivables
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$
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2,049
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$
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1,953
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$
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96
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4.9%
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Credit card receivables
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2,058
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1,974
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84
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4.3%
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Allowance for credit card receivables
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36
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33
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3
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9.1%
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Annualized yield on average quarterly gross credit card receivables
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12.7%
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12.6%
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Annualized credit loss rate on average quarterly gross credit card
receivables
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4.4%
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4.8%
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-
Revenue for the second quarter of 2012 increased by 14.9% compared to
the second quarter of 2011. The increase was primarily driven by
increased credit card transaction values and receivable balances,
resulting in higher interchange fee and interest income. Higher PC Telecom revenues resulting from the 2011 launch of the new Mobile Shop
kiosks also contributed to the increase.
-
Operating income for the second quarter of 2012 increased by $3 million
compared to the second quarter of 2011. The increase was as a result of
the increase in revenue as described above, partially offset by higher PC Points loyalty costs and operational costs related to an increase in
active accounts.
-
Earnings before income taxes increased by $2 million in the second
quarter of 2012 compared to the second quarter of 2011. The increase
was primarily a result of the increase in operating income, partially
offset by an increase in net interest and other financing charges.
Outlook(1)
-
For fiscal 2012, the Company continues to expect:
-
Capital expenditures to be approximately $1.1 billion, with
approximately 40% to be dedicated to investing in the IT infrastructure
and supply chain projects and the remaining 60% to be spent on retail
operations;
-
Costs associated with the transition of certain Ontario conventional
stores under collective agreements ratified in 2010 to range from $30
million to $40 million;
-
Incremental costs related to investments in IT and supply chain to be
approximately $70 million;
-
$40 million of incremental investment in its customer proposition will
not be covered by operations; and
-
Net earnings per share to be down year-over-year, with more pressure in
the first half of the year, as a result of the Company's expectation
that operations will not cover the incremental costs related to the
investments in IT and supply chain and its customer proposition.
|
(1)
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See Forward-Looking Statements in this News Release.
|
Forward-Looking Statements
This News Release for Loblaw Companies Limited contains forward-looking
statements about the Company's objectives, plans, goals, aspirations,
strategies, financial condition, results of operations, cash flows,
performance, prospects and opportunities. These forward-looking
statements are typically identified by words such as "anticipate",
"expect", "believe", "foresee", "could", "estimate", "goal", "intend",
"plan", "seek", "strive", "will", "may" and "should" and similar
expressions, as they relate to the Company and its management. In this
News Release, forward-looking statements include the Company's
continued expectation that for fiscal 2012:
-
its capital expenditures will be approximately $1.1 billion;
-
costs associated with the transition of certain Ontario conventional
stores under collective agreements ratified in 2010 will range from $30
million to $40 million;
-
incremental costs related to investments in information technology
("IT") and supply chain will be approximately $70 million;
-
$40 million of incremental costs associated with strengthening its
customer proposition will not be covered by operations; and
-
net earnings per share to be down year-over-year, with more pressure in
the first half of the year, as a result of the Company's expectation
that operations will not cover the incremental costs related to the
investments in IT and supply chain and its customer proposition.
These forward-looking statements are not historical facts but reflect
the Company's current expectations concerning future results and
events. They also reflect management's current assumptions regarding
the risks and uncertainties referred to below and their respective
impact on the Company. In addition, the Company's expectation with
regard to its net earnings in 2012 is based in part on the assumptions
that tax rates will be similar to those in 2011, the Company achieves
its plan to increase net retail square footage by 1% and there are no
unexpected adverse events or costs related to the Company's investments
in IT and supply chain.
The forward-looking statements contained in this News Release are
subject to a number of risks and uncertainties that could cause actual results or events to differ
materially from current expectations, including, but not limited to:
-
failure to realize revenue growth, anticipated cost savings or operating
efficiencies from the Company's major initiatives, including
investments in the Company's IT systems, including the Company's IT
systems implementation, or unanticipated results from these
initiatives;
-
the inability of the Company's IT infrastructure to support the
requirements of the Company's business;
-
heightened competition, whether from current competitors or new entrants
to the marketplace;
-
changes in economic conditions including the rate of inflation or
deflation, changes in interest and currency exchange rates and
derivative and commodity prices;
-
public health events including those related to food safety;
-
failure to achieve desired results in labour negotiations, including the
terms of future collective bargaining agreements, which could lead to
work stoppages;
-
the inability of the Company to manage inventory to minimize the impact
of obsolete or excess inventory and to control shrink;
-
failure by the Company to maintain appropriate records to support its
compliance with accounting, tax or legal rules, regulations and
policies;
-
failure of the Company's franchise stores to perform as expected;
-
reliance on the performance and retention of third-party service
providers including those associated with the Company's supply chain
and apparel business;
-
supply and quality control issues with vendors;
-
changes to or failure to comply with laws and regulations affecting the
Company and its business, including changes to the regulation of
generic prescription drug prices and the reduction of reimbursement
under public drug benefit plans and the elimination or reduction of
professional allowances paid by drug manufacturers;
-
changes in the Company's income, commodity, other tax and regulatory
liabilities including changes in tax laws, regulations or future
assessments;
-
any requirement of the Company to make contributions to its registered
funded defined benefit pension plans or the multi-employer pension
plans in which it participates in excess of those currently
contemplated;
-
the risk that the Company would experience a financial loss if its
counterparties fail to meet their obligations in accordance with the
terms and conditions of their contracts with the Company; and
-
the inability of the Company to collect on its credit card receivables.
This is not an exhaustive list of the factors that may affect the
Company's forward-looking statements. Other risks and uncertainties not
presently known to the Company or that the Company presently believes
are not material could also cause actual results or events to differ
materially from those expressed in its forward-looking statements.
Additional risks and uncertainties are discussed in the Company's
materials filed with the Canadian securities regulatory authorities
from time to time, including the Enterprise Risks and Risk Management
section of the Management's Discussion and Analysis ("MD&A") and the
MD&A included in the Company's 2011 Annual Report - Financial Review.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect the Company's expectations
only as of the date of this News Release. The Company disclaims any
intention or obligation to update or revise these forward-looking
statements, whether as a result of new information, future events or
otherwise, except as required by law.
Non-GAAP Financial Measures
The Company uses the following non-GAAP financial measures: EBITDA and
EBITDA margin. The Company believes these non-GAAP financial measures
provide useful information to both management and investors in
measuring the financial performance of the Company for the reasons
outlined below. These measures do not have a standardized meaning
prescribed by GAAP and therefore they may not be comparable to
similarly titled measures presented by other publicly traded companies,
and should not be construed as an alternative to other financial
measures determined in accordance with GAAP.
EBITDA and EBITDA Margin The following table reconciles earnings before income taxes, net
interest expense and other financing charges and depreciation and
amortization ("EBITDA") to operating income which is reconciled to GAAP
net earnings measures reported in the consolidated statements of
earnings for the 12 and 24 week periods ended June 16, 2012 and June
18, 2011. EBITDA is useful to management in assessing performance of
its ongoing operations and its ability to generate cash flows to fund
its cash requirements, including the Company's capital investment
program.
EBITDA margin is calculated as EBITDA divided by revenue.
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2012
|
|
|
2011
|
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|
2012
|
|
|
2011
|
|
(millions of Canadian dollars) (unaudited)
|
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|
(12 weeks)
|
|
|
(12 weeks)
|
|
|
(24 weeks)
|
|
|
(24 weeks)
|
|
Net earnings
|
|
$
|
159
|
|
$
|
197
|
|
$
|
285
|
|
$
|
359
|
|
Add impact of the following:
|
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|
|
|
|
|
|
|
|
|
|
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|
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Income taxes
|
|
|
54
|
|
|
70
|
|
|
93
|
|
|
138
|
|
|
Net interest expense and other financing charges
|
|
|
77
|
|
|
78
|
|
|
151
|
|
|
151
|
|
Operating income
|
|
|
290
|
|
|
345
|
|
|
529
|
|
|
648
|
|
Add impact of the following:
|
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|
|
|
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Depreciation and amortization
|
|
|
179
|
|
|
159
|
|
|
349
|
|
|
311
|
|
EBITDA
|
|
$
|
469
|
|
$
|
504
|
|
$
|
878
|
|
$
|
959
|
|
|
|
|
|
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Selected Financial Information
The following includes selected quarterly financial information, which
is prepared by management in accordance with International Financial
Reporting Standards ("IFRS") and is based on the Company's 2012 Second
Quarter Report to Shareholders. This financial information does not
contain all interim period disclosures required by IFRS, and
accordingly, should be read in conjunction with the Company's 2011
Annual Report - Financial Review and 2012 Second Quarter Report to
Shareholders which are available in the Investor Centre section of the
Company's website at www.loblaw.ca.
Condensed Consolidated Statements of Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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June 16, 2012
|
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June 18, 2011
|
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June 16, 2012
|
|
June 18, 2011
|
|
(millions of Canadian dollars except where otherwise indicated)
(unaudited)
|
|
(12 weeks)
|
|
(12 weeks)
|
|
(24 weeks)
|
|
(24 weeks)
|
|
Revenue
|
|
$
|
7,375
|
|
$
|
7,278
|
|
$
|
14,312
|
|
$
|
14,150
|
|
Cost of Merchandise Inventories Sold
|
|
|
5,632
|
|
|
5,533
|
|
|
10,916
|
|
|
10,736
|
|
Selling, General and Administrative Expenses
|
|
|
1,453
|
|
|
1,400
|
|
|
2,867
|
|
|
2,766
|
|
Operating Income
|
|
|
290
|
|
|
345
|
|
|
529
|
|
|
648
|
|
Net interest expense and other financing charges
|
|
|
77
|
|
|
78
|
|
|
151
|
|
|
151
|
|
Earnings Before Income Taxes
|
|
|
213
|
|
|
267
|
|
|
378
|
|
|
497
|
|
Income taxes
|
|
|
54
|
|
|
70
|
|
|
93
|
|
|
138
|
|
Net Earnings
|
|
$
|
159
|
|
$
|
197
|
|
$
|
285
|
|
$
|
359
|
|
Net Earnings per Common Share ($)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.57
|
|
$
|
0.70
|
|
$
|
1.01
|
|
$
|
1.28
|
|
Diluted
|
|
$
|
0.56
|
|
$
|
0.69
|
|
$
|
1.01
|
|
$
|
1.27
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Balance Sheets
|
|
|
|
|
|
|
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|
|
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As at
|
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As at
|
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As at
|
|
(millions of Canadian dollars) (unaudited)
|
|
June 16, 2012
|
|
June 18, 2011
|
|
December 31, 2011
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
923
|
|
$
|
774
|
|
$
|
966
|
|
|
Short term investments
|
|
|
718
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|
|
699
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|
|
754
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|
|
Accounts receivable
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|
|
459
|
|
|
408
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|
|
467
|
|
|
Credit card receivables
|
|
|
2,058
|
|
|
1,974
|
|
|
2,101
|
|
|
Inventories
|
|
|
1,890
|
|
|
1,962
|
|
|
2,025
|
|
|
Income taxes recoverable
|
|
|
5
|
|
|
12
|
|
|
-
|
|
|
Prepaid expenses and other assets
|
|
|
147
|
|
|
136
|
|
|
117
|
|
|
Assets held for sale
|
|
|
23
|
|
|
66
|
|
|
32
|
|
Total Current Assets
|
|
|
6,223
|
|
|
6,031
|
|
|
6,462
|
|
Fixed Assets
|
|
|
8,765
|
|
|
8,413
|
|
|
8,725
|
|
Investment Properties
|
|
|
95
|
|
|
73
|
|
|
82
|
|
Goodwill & Intangible Assets
|
|
|
1,063
|
|
|
1,026
|
|
|
1,029
|
|
Deferred Income Taxes
|
|
|
263
|
|
|
193
|
|
|
232
|
|
Security Deposits
|
|
|
244
|
|
|
183
|
|
|
266
|
|
Franchise Loans Receivable
|
|
|
358
|
|
|
313
|
|
|
331
|
|
Other Assets
|
|
|
258
|
|
|
347
|
|
|
301
|
|
Total Assets
|
|
$
|
17,269
|
|
$
|
16,579
|
|
$
|
17,428
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Trade payables and other liabilities
|
|
|
3,356
|
|
|
3,273
|
|
|
3,677
|
|
|
Provisions
|
|
|
40
|
|
|
75
|
|
|
35
|
|
|
Income taxes payable
|
|
|
-
|
|
|
-
|
|
|
14
|
|
|
Short term debt
|
|
|
905
|
|
|
905
|
|
|
905
|
|
|
Long term debt due within one year
|
|
|
226
|
|
|
81
|
|
|
87
|
|
Total Current Liabilities
|
|
|
4,527
|
|
|
4,334
|
|
|
4,718
|
|
Provisions
|
|
|
47
|
|
|
50
|
|
|
50
|
|
Long Term Debt
|
|
|
5,369
|
|
|
5,364
|
|
|
5,493
|
|
Deferred Income Taxes
|
|
|
18
|
|
|
26
|
|
|
21
|
|
Capital Securities
|
|
|
222
|
|
|
221
|
|
|
222
|
|
Other Liabilities
|
|
|
971
|
|
|
701
|
|
|
917
|
|
Total Liabilities
|
|
|
11,154
|
|
|
10,696
|
|
|
11,421
|
|
Shareholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Common Share Capital
|
|
|
1,544
|
|
|
1,539
|
|
|
1,540
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|
Retained Earnings
|
|
|
4,513
|
|
|
4,300
|
|
|
4,414
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|
Contributed Surplus
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|
|
53
|
|
|
39
|
|
|
48
|
|
Accumulated Other Comprehensive Income
|
|
|
5
|
|
|
5
|
|
|
5
|
|
Total Shareholders' Equity
|
|
|
6,115
|
|
|
5,883
|
|
|
6,007
|
|
Total Liabilities and Shareholders' Equity
|
|
$
|
17,269
|
|
$
|
16,579
|
|
$
|
17,428
|
|
|
|
|
|
|
|
|
|
|
|
Condensed Consolidated Statements of Cash Flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian dollars) (unaudited)
|
|
|
June 16, 2012
(12 weeks)
|
|
|
June 18, 2011
(12 weeks)
|
|
|
June 16, 2012
(24 weeks)
|
|
|
June 18, 2011
(24 weeks)
|
|
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
|
|
$
|
159
|
|
$
|
197
|
|
$
|
285
|
|
$
|
359
|
|
|
Income taxes
|
|
|
54
|
|
|
70
|
|
|
93
|
|
|
138
|
|
|
Net interest expense and other financing charges
|
|
|
77
|
|
|
78
|
|
|
151
|
|
|
151
|
|
|
Depreciation and amortization
|
|
|
179
|
|
|
159
|
|
|
349
|
|
|
311
|
|
|
Income taxes paid
|
|
|
(53)
|
|
|
(55)
|
|
|
(122)
|
|
|
(96)
|
|
|
Interest received
|
|
|
20
|
|
|
26
|
|
|
27
|
|
|
36
|
|
|
Change in credit card receivables
|
|
|
(71)
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|
|
(87)
|
|
|
43
|
|
|
23
|
|
|
Change in non-cash working capital
|
|
|
241
|
|
|
89
|
|
|
(292)
|
|
|
(413)
|
|
|
Fixed assets and other related impairments
|
|
|
-
|
|
|
5
|
|
|
3
|
|
|
9
|
|
|
Loss on disposal of assets
|
|
|
(2)
|
|
|
1
|
|
|
(2)
|
|
|
1
|
|
|
Other
|
|
|
(5)
|
|
|
(2)
|
|
|
7
|
|
|
(19)
|
|
Cash Flows from Operating Activities
|
|
|
599
|
|
|
481
|
|
|
542
|
|
|
500
|
|
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed asset purchases
|
|
|
(233)
|
|
|
(161)
|
|
|
(367)
|
|
|
(316)
|
|
|
Change in short term investments
|
|
|
79
|
|
|
(23)
|
|
|
36
|
|
|
41
|
|
|
Proceeds from fixed asset sales
|
|
|
15
|
|
|
1
|
|
|
16
|
|
|
6
|
|
|
Change in franchise investments and other receivables
|
|
|
20
|
|
|
28
|
|
|
3
|
|
|
28
|
|
|
Change in security deposits
|
|
|
8
|
|
|
-
|
|
|
22
|
|
|
167
|
|
|
Intangible asset additions
|
|
|
(41)
|
|
|
(4)
|
|
|
(41)
|
|
|
(5)
|
|
|
Other
|
|
|
-
|
|
|
7
|
|
|
-
|
|
|
-
|
|
Cash Flows used in Investing Activities
|
|
|
(152)
|
|
|
(152)
|
|
|
(331)
|
|
|
(79)
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in bank indebtedness
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(10)
|
|
|
Change in short term debt
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
370
|
|
|
Long term debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued
|
|
|
14
|
|
|
159
|
|
|
37
|
|
|
216
|
|
|
|
Retired
|
|
|
(44)
|
|
|
(7)
|
|
|
(73)
|
|
|
(865)
|
|
|
Interest paid
|
|
|
(96)
|
|
|
(131)
|
|
|
(159)
|
|
|
(213)
|
|
|
Dividends paid
|
|
|
(59)
|
|
|
(16)
|
|
|
(59)
|
|
|
(16)
|
|
|
Common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issued
|
|
|
2
|
|
|
16
|
|
|
4
|
|
|
19
|
|
|
|
Purchased for cancellation
|
|
|
(2)
|
|
|
(3)
|
|
|
(4)
|
|
|
(3)
|
|
Cash Flows from (used in) Financing Activities
|
|
|
(185)
|
|
|
18
|
|
|
(254)
|
|
|
(502)
|
|
Effect of foreign currency exchange rate changes on cash and cash
equivalents
|
|
|
4
|
|
|
-
|
|
|
-
|
|
|
(2)
|
|
Change in Cash and Cash Equivalents
|
|
|
266
|
|
|
347
|
|
|
(43)
|
|
|
(83)
|
|
Cash and Cash Equivalents, Beginning of Period
|
|
|
657
|
|
|
427
|
|
|
966
|
|
|
857
|
|
Cash and Cash Equivalents, End of Period
|
|
$
|
923
|
|
$
|
774
|
|
$
|
923
|
|
$
|
774
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2011 Annual Report and 2012 Second Quarter Report to Shareholders
The Company's 2011 Annual Report and 2012 Second Quarter Report to
Shareholders are available in the Investor Centre section of the
Company's website at www.loblaw.ca or at www.sedar.com.
Investor Relations
Shareholders, security analysts and investment professionals should
direct their requests to
Kim Lee
, Vice President, Investor Relations at
the Company's National Head Office or by e-mail at investor@loblaw.ca.
Additional information has been filed electronically with various
securities regulators in Canada through the System for Electronic
Document Analysis and Retrieval (SEDAR) and with the Office of the
Superintendent of Financial Institutions (OSFI) as the primary
regulator for the Company's subsidiary, President's Choice Bank.
Conference Call and Webcast
Loblaw Companies Limited will host a conference call as well as an audio
webcast on July 25, 2012 at 11:00 a.m. (EST).
To access via tele-conference please dial (647) 427-7450. The playback
will be made available two hours after the event at (416) 849-0833,
access code: 87338061. To access via audio webcast please visit www.loblaw.ca, go to Investor Centre section and click on webcast. Pre-registration
will be available.
Full details are available on the Loblaw Companies Limited website at www.loblaw.ca.