TORONTO, March 5, 2015 /CNW/ - George Weston Limited (TSX:
WN) ("GWL" or the "Company") today announced its consolidated
unaudited results for the 13 weeks ended December 31, 2014 and the release of its
2014 Annual Report. The Company's fourth quarter 2014 results
include the results of Shoppers Drug Mart Corporation
("Shoppers Drug Mart") as well as the associated
acquisition-related accounting adjustments.
The 2014 Annual Report includes the Company's audited annual
consolidated financial statements and Management's Discussion and
Analysis ("MD&A") for the fiscal year ended December 31, 2014. The 2014 Annual Report
has been filed with SEDAR and is available at sedar.com and in the
Investor Centre section of the Company's website at weston.ca.
As a result of the Company's reporting calendar, the fourth
quarter and full year 2014 include an extra week of operations
("the 53rd week") compared to 2013.
"2014 was a year of transformation for George Weston Limited as
we continued to grow and evolve our portfolio of businesses and
strengthen our competitive position. Loblaw's acquisition of
Shoppers Drug Mart creates a unique retail footprint while
providing customers best-in-class food and health and wellness
offerings along with the combined Company's trusted and most
recognized brands, while focusing on convenience and value", said
W. Galen Weston,
Executive Chairman, George Weston Limited.
2014 FOURTH QUARTER HIGHLIGHTS
- Sales of $11,734 million, an
increase of $3,815 million or
48.2%.
- Adjusted EBITDA(1) of $1,022
million, an increase of $468 million or 84.5%.
- Adjusted operating income(1) of $736 million, an increase of $393 million or 114.6%.
- Adjusted basic net earnings per common share(1) of
$1.58, an increase of $0.60 or 61.2%.
- Free cash flow(1) of $504 million for the fourth quarter and
$1,033 million for full year
2014.
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(unaudited)
For the periods ended |
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Dec. 31, 2014 |
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Dec.
31, 2013(3) |
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Dec. 31, 2014 |
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Dec.
31, 2013(3) |
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($ millions except where otherwise indicated) |
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(13
weeks) |
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(12 weeks) |
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Change |
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(53
weeks) |
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(52 weeks) |
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Change |
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Sales |
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$ |
11,734 |
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$ |
7,919 |
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48.2% |
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$ |
43,918 |
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$ |
33,582 |
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30.8% |
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Sales excluding
Shoppers Drug Mart |
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$ |
8,680 |
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$ |
7,919 |
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9.6% |
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$ |
34,868 |
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$ |
33,582 |
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3.8% |
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EBITDA(1) |
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$ |
1,032 |
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$ |
588 |
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75.5% |
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$ |
2,515 |
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$ |
2,507 |
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0.3% |
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Adjusted
EBITDA(1) |
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$ |
1,022 |
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$ |
554 |
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84.5% |
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$ |
3,539 |
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$ |
2,420 |
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46.2% |
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Adjusted EBITDA
margin(1) |
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8.7% |
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7.0% |
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8.1% |
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7.2% |
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Adjusted
EBITDA(1) excluding |
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Shoppers Drug
Mart |
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$ |
670 |
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$ |
554 |
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20.9% |
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$ |
2,551 |
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$ |
2,420 |
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5.4% |
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Adjusted EBITDA
margin(1) excluding |
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Shoppers Drug Mart |
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7.7% |
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7.0% |
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7.3% |
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7.2% |
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Operating income |
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$ |
622 |
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$ |
376 |
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65.4% |
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$ |
973 |
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$ |
1,616 |
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(39.8)% |
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Adjusted operating
income(1) |
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$ |
736 |
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$ |
343 |
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114.6% |
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$ |
2,414 |
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$ |
1,533 |
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57.5% |
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Adjusted operating
margin(1) |
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6.3% |
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4.3% |
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5.5% |
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4.6% |
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Adjusted operating income(1) excluding |
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Shoppers Drug Mart |
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$ |
446 |
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$ |
343 |
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30.0% |
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$ |
1,630 |
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$ |
1,533 |
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6.3% |
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Adjusted operating
margin(1) excluding |
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Shoppers Drug Mart |
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5.1% |
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4.3% |
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4.7% |
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4.6% |
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Net earnings from
continuing |
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operations
attributable to |
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shareholders of the
Company |
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$ |
161 |
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$ |
177 |
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(9.0)% |
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$ |
126 |
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$ |
614 |
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(79.5)% |
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Adjusted net earnings
from continuing |
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operations
attributable to |
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shareholders of the
Company(1) |
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$ |
212 |
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$ |
135 |
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57.0% |
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$ |
728 |
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$ |
586 |
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24.2% |
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Basic net earnings per
common share |
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from continuing
operations ($) |
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$ |
1.18 |
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$ |
1.31 |
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(9.9)% |
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$ |
0.64 |
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$ |
4.47 |
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(85.7)% |
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Adjusted basic net
earnings per common |
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share from continuing
operations(1) ($) |
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$ |
1.58 |
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$ |
0.98 |
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61.2% |
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$ |
5.35 |
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$ |
4.25 |
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25.9% |
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Pavi Binning, President, George
Weston Limited, commented that "We are pleased with George Weston
Limited's fourth quarter results. Loblaw delivered strong financial
and operating performance in both core grocery and pharmacy despite
a highly competitive retail environment. Weston Foods delivered
volume growth across all business units. Financial performance was
comparable with the fourth quarter of 2013 which was in-line with
expectations. Loblaw and Weston Foods will continue to execute on
their respective strategies in 2015 to drive sustainable, long term
growth and profitability".
GWL's fourth quarter 2014 adjusted basic net earnings per common
share(1) increased to $1.58 from $0.98 in
the same period in 2013. The improvement of $0.60 was primarily due to an increase in Loblaw
Companies Limited ("Loblaw") earnings net of the dilution in the
Company's ownership as a result of shares issued by Loblaw to
acquire Shoppers Drug Mart. Loblaw earnings were positively
impacted in the fourth quarter of 2014 by Shoppers Drug Mart
results, partially offset by higher interest expense driven by the
financing associated with the acquisition of Shoppers Drug Mart and
a higher adjusted income tax rate(1).
Basic net earnings per common share decreased by $0.13 to $1.18
compared to the same period in 2013, and were impacted by the
following significant items:
- the unfavourable year-over-year impact of the fair value
adjustment of the forward sale agreement for 9.6 million
Loblaw common shares of $93 million
($0.56 per common share);
- the amortization of the acquired Shoppers Drug Mart intangible
assets of $124 million
($0.33 per common share);
- the negative impact of the recognition of the fair value
increment on the acquired Shoppers Drug Mart inventory sold of
$69 million ($0.17 per common share); partially offset by
- the favourable year-over-year impact of the restructuring of
franchise fees of $40 million
($0.11 per common share).
For a complete list of items which impacted basic net
earnings per common share but that are excluded from adjusted basic
net earnings per common share(1), see the "Non-GAAP
Financial Measures" section of this News Release.
REPORTABLE OPERATING SEGMENTS |
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Weston Foods |
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(unaudited)
For the periods ended |
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Dec. 31, 2014 |
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Dec.
31, 2013(3) |
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Dec. 31, 2014 |
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Dec.
31, 2013(3) |
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($ millions except where otherwise
indicated) |
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(13 weeks) |
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(12
weeks) |
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Change |
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(53 weeks) |
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(52
weeks) |
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Change |
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Sales |
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$ |
469 |
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$ |
413 |
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13.6% |
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$ |
1,923 |
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$ |
1,812 |
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6.1% |
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|
EBITDA(1) |
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$ |
91 |
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$ |
56 |
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62.5% |
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$ |
301 |
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$ |
305 |
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(1.3)% |
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Adjusted EBITDA(1) |
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$ |
74 |
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$ |
67 |
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10.4% |
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$ |
311 |
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$ |
322 |
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(3.4)% |
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Adjusted EBITDA
margin(1) |
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15.8% |
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16.2% |
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16.2% |
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17.8% |
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Operating income |
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$ |
74 |
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$ |
40 |
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85.0% |
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$ |
231 |
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$ |
238 |
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(2.9)% |
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Adjusted operating
income(1) |
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$ |
57 |
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$ |
52 |
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9.6% |
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$ |
241 |
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$ |
259 |
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(6.9)% |
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Adjusted operating
margin(1) |
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12.2% |
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12.6% |
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12.5% |
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14.3% |
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Sales Weston Foods sales for the fourth quarter of 2014
were $469 million, an increase of
$56 million or 13.6% compared to
the same period in 2013. Foreign currency translation and the 53rd
week positively impacted sales by approximately 4.1% and 7.3%,
respectively. Excluding the impact of foreign currency translation
and the 53rd week, sales increased by 2.2% due to an increase
in volumes across all business units, partially offset by the
combined negative impact of pricing and changes in sales mix.
EBITDA(1) Weston Foods
EBITDA(1) in the fourth quarter of 2014 increased by
$35 million to $91 million compared to the same period in 2013.
The increase was primarily driven by insurance proceeds relating to
a prior quarter inventory loss in the net amount of $12 million and the year-over-year
favourable impact of the fair value adjustment of
commodity derivatives of $11 million, each of which is described in
the "Non-GAAP Financial Measures" section of this News Release. In
addition, the increase was due to an improvement in underlying
operating performance described below.
Adjusted EBITDA(1) in the fourth quarter of 2014 was
$74 million, an increase of
$7 million compared to the same
period in 2013. Adjusted EBITDA margin(1) for 2014
decreased by 0.4% compared to the same period in 2013. The
increase in adjusted EBITDA(1) in the fourth quarter of
2014 was primarily due to the positive impact of the 53rd week of
$6 million. Excluding the 53rd week,
adjusted EBITDA(1) was relatively flat as higher volumes
were offset by new plant costs.
Operating Income Weston Foods operating income for the
fourth quarter of 2014 was $74
million, an increase of $34
million compared to the same period in 2013 and was
positively impacted by the items described above in
EBITDA(1).
Adjusted operating income(1) was $57 million in the fourth quarter of 2014, an
increase of $5 million compared
to the same period in 2013, driven by the increase in adjusted
EBITDA(1) described above, partially offset by the
increase in depreciation and amortization in the fourth quarter of
2014 of $2 million due to the
investments in capital.
Loblaw |
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(unaudited)
For the periods ended |
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Dec. 31, 2014 |
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Dec.
31, 2013(3) |
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Dec. 31, 2014 |
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Dec.
31, 2013(3) |
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($
millions except where otherwise indicated) |
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(13 weeks) |
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(12 weeks) |
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Change |
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(53
weeks) |
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(52 weeks) |
|
Change |
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Sales |
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$ |
11,413 |
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$ |
7,640 |
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49.4% |
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$ |
42,611 |
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$ |
32,371 |
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31.6% |
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Sales excluding
Shoppers Drug Mart |
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$ |
8,359 |
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$ |
7,640 |
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9.4% |
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$ |
33,561 |
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$ |
32,371 |
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3.7% |
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Retail gross
profit |
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$ |
2,925 |
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$ |
1,625 |
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80.0% |
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$ |
9,734 |
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$ |
6,961 |
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39.8% |
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EBITDA(1) |
|
$ |
898 |
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$ |
490 |
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83.3% |
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$ |
2,126 |
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$ |
2,127 |
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Adjusted
EBITDA(1) |
|
$ |
948 |
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|
$ |
487 |
|
94.7% |
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|
$ |
3,228 |
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$ |
2,098 |
|
53.9% |
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|
Adjusted EBITDA
margin(1) |
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8.3% |
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6.4% |
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7.6% |
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6.5% |
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Adjusted EBITDA(1)
excluding |
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Shoppers Drug Mart |
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$ |
596 |
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$ |
487 |
|
22.4% |
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|
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|
$ |
2,240 |
|
|
|
$ |
2,098 |
|
6.8% |
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|
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Adjusted EBITDA
margin(1) excluding |
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Shoppers Drug
Mart |
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7.1% |
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6.4% |
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|
6.7% |
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|
6.5% |
|
|
|
|
Operating income |
|
$ |
505 |
|
|
|
$ |
294 |
|
71.8% |
|
|
|
|
$ |
654 |
|
|
|
$ |
1,303 |
|
(49.8)% |
|
|
Adjusted operating income(1) |
|
$ |
679 |
|
|
|
$ |
291 |
|
133.3% |
|
|
|
|
$ |
2,173 |
|
|
|
$ |
1,274 |
|
70.6% |
|
|
Adjusted operating margin(1) |
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|
5.9% |
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|
|
|
3.8% |
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|
|
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|
|
|
5.1% |
|
|
|
|
3.9% |
|
|
|
|
|
Adjusted operating
income(1) excluding |
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|
Shoppers Drug
Mart |
|
$ |
389 |
|
|
|
$ |
291 |
|
33.7% |
|
|
|
|
$ |
1,389 |
|
|
|
$ |
1,274 |
|
9.0% |
|
|
|
Adjusted operating
margin(1) excluding |
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Shoppers Drug
Mart |
|
|
4.7% |
|
|
|
|
3.8% |
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|
|
|
|
|
|
4.1% |
|
|
|
|
3.9% |
|
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|
Sales Loblaw sales in the fourth quarter of 2014
were $11.4 billion, an increase of
$3.8 billion compared to the same
period in 2013, and included $3.1 billion in sales related to Shoppers
Drug Mart. Excluding Shoppers Drug Mart and the 53rd week
sales of $574 million, Retail sales
increased $117 million and same-store
sales growth for core grocery was 2.4% (2013 - 0.6%). Loblaw's
average quarterly internal food price index was slightly higher
than (2013 - lower than) the average quarterly national food price
inflation of 3.5% (2013 - 0.9%) as measured by "The Consumer Price
Index for Food Purchased from Stores". In the last twelve months,
corporate and franchise store square footage remained flat.
Gross Profit Loblaw's Retail gross profit increased
by $1,300 million to
$2,925 million in the fourth
quarter of 2014 from $1,625 million in the same period in 2013.
The increase included:
- $1,221 million of gross profit
generated by Shoppers Drug Mart; partially offset by
- the negative impact of the recognition of the fair value
increment on the acquired Shoppers Drug Mart inventory sold of
$69 million.
Excluding the above impacts, Retail gross profit increased by
$148 million to $1,773 million in the fourth quarter of 2014
compared to the same period in 2013, driven by higher sales,
including the 53rd week. Retail gross profit percentage remained
flat at 21.9% compared to 2013, and was positively impacted by
synergies related to the acquisition of Shoppers Drug Mart and
reductions in transportation costs and was negatively impacted by
increased shrink.
EBITDA(1) Loblaw EBITDA(1) was
$898 million in the fourth quarter of
2014, an increase of $408 million,
and was negatively impacted by a number of items, including certain
items relating to the acquisition of Shoppers Drug Mart, partially
offset by the restructuring of franchise fees of $40 million. For a complete list of items that
impacted EBITDA(1) but that are excluded from adjusted
EBITDA(1), see the "Non-GAAP Financial Measures" section
of this News Release.
Loblaw adjusted EBITDA(1) was $948 million in the fourth quarter of 2014, an
increase of $461 million
compared to the same period in 2013, and included $352 million of adjusted EBITDA(1)
related to Shoppers Drug Mart. Excluding Shoppers Drug Mart,
adjusted EBITDA(1) increased by $109 million, primarily driven by Retail
including the 53rd week and net synergies. Excluding Shoppers Drug
Mart, the 53rd week and net synergies, the improvement in Retail
adjusted EBITDA(1) was driven by the increase in gross
profit described above, supply chain efficiencies, changes in the
fair value of Loblaw's franchise investments and lower
administrative and other operating costs, partially offset by
higher foreign exchange losses and higher investments in Loblaw's
franchise business. Excluding Shoppers Drug Mart, adjusted EBITDA
margin(1) was 7.1% compared to 6.4% in the same period
in 2013.
Operating Income Loblaw operating income increased by
$211 million to $505 million compared to the fourth quarter of
2013, and was negatively impacted by the items described above in
EBITDA(1) and the amortization of intangible assets
acquired with Shoppers Drug Mart. For a complete list of items
which impacted operating income but that are excluded from adjusted
operating income(1), see the "Non-GAAP Financial
Measures" section of this News Release.
Adjusted operating income(1) was $679 million in the fourth quarter of 2014, an
increase of $388 million
compared to the same period in 2013, and included $290 million of adjusted operating
income(1) related to Shoppers Drug Mart. Excluding
Shoppers Drug Mart, adjusted operating income(1)
increased by $98 million and was
positively impacted by the improvement in adjusted
EBITDA(1) as described above, partially offset by an
increase in depreciation and amortization of $11 million.
NET INTEREST EXPENSE AND OTHER FINANCING CHARGES
In the fourth quarter of 2014, net interest expense and other
financing charges increased by $125
million to $231 million
compared to the same period in 2013, and included the unfavourable
year-over-year impact of the fair value adjustment of the forward
sale agreement for 9.6 million Loblaw common shares, as well as a
number of other items. For a complete list of the items
that impacted net interest expense and other financing charges
but that are excluded from adjusted net interest expense and other
financing charges(1), see the "Non-GAAP Financial
Measures" section of this News Release.
Adjusted net interest expense and other financing
charges(1) in the fourth quarter of 2014 increased by
$51 million, driven by higher
interest on long term debt, primarily as a result of debt incurred
by Loblaw to finance its acquisition of Shoppers Drug Mart.
INCOME TAXES
Income tax expense for the fourth quarter of 2014 was $95 million and the effective income tax
rate was 24.3%. Income tax expense for the fourth quarter of 2013
was $51 million and the effective
income tax rate was 18.9%, which reflects an increase in certain
non-taxable amounts. The adjusted income tax expense(1)
for the fourth quarter of 2014 was $155
million and the adjusted tax rate(1) was 26.6%.
The adjusted income tax expense(1) for the fourth
quarter of 2013 was $45 million and
the adjusted tax rate(1) was 18.7%, which reflects an
increase in certain non-taxable amounts.
ADJUSTED DEBT(1)
The Company's adjusted debt(1) increased significantly
in 2014 as a result of Loblaw's acquisition of Shoppers Drug Mart.
On closing of the acquisition, adjusted debt(1) was
$12.1 billion. The Company made
significant progress in meeting its debt reduction target and
decreased adjusted debt(1) by approximately
$400 million in the fourth quarter of
2014 and $700 million since the
closing of the acquisition, resulting in an adjusted
debt(1) balance of $11.4 billion as at December 31, 2014. The reduction in
adjusted debt(1) since closing included the
repayment of a $350 million
medium term note ("MTN") at maturity and repayments under the
unsecured term loan facility (net of Choice Properties Real Estate
Investment Trust's ("Choice Properties") notes issued to third
parties), partially offset by the issuance of a $200 million MTN and other indebtedness.
FREE CASH FLOW(1)
The Company's free cash flow(1) increased by
$149 million to $504 million in the fourth quarter of 2014. The
year-over-year increase in the fourth quarter of 2014 was primarily
due to higher cash earnings driven by Shoppers Drug Mart, partially
offset by increased capital investments as well as higher interest
payments.
ACQUISITION OF SHOPPERS DRUG MART CORPORATION
In the fourth quarter of 2014, Loblaw realized net synergies of
approximately $49 million
generated primarily from improved cost of inventories sold and from
purchasing efficiencies in goods not for resale. The net synergies
realized, year-to-date, were $101 million. Loblaw continues to expect to
achieve annualized synergies of $300 million in the third full year
following the close of the acquisition of Shoppers Drug Mart (net
of related costs).
Pursuant to a Consent Agreement reached with the Competition
Bureau in 2014, Loblaw was required to divest 16 Shoppers Drug Mart
stores, two franchise grocery stores and nine in-store pharmacy
operations.
In the fourth quarter of 2014, 11 Shoppers Drug Mart stores were
sold which resulted in a divestiture loss of $14 million to Loblaw recorded in operating
income. On a year-to-date basis, two franchise grocery stores and
13 Shoppers Drug Mart stores were sold, and nine in-store
pharmacies were licensed to unrelated parties which resulted in a
net divestiture loss of $12 million to Loblaw recorded in operating
income. The final three Shoppers Drug Mart stores were approved for
sale by the Competition Bureau and were sold subsequent to the end
of 2014 for estimated proceeds of $9 million.
As a result of the acquisition, GWL's ownership interest in
Loblaw decreased from approximately 63% to approximately 46%. The
Company remains the controlling shareholder and continues to
consolidate Loblaw.
OUTLOOK(2)
This outlook reflects the underlying operating performance of the
Company's reportable operating segments as discussed below.
Weston Foods expects a decline in adjusted operating
income(1) in 2015 that is greater than that experienced
in 2014 on an equivalent 52-week basis. Management remains
committed to continuing to drive long term financial performance in
Weston Foods and expects to make capital investments of
approximately $300 million in
targeted areas of growth as well as incremental investments in
innovation and capabilities. The costs associated with this level
of capital and other investments as well as higher input costs will
be partially offset by pricing, volume growth and productivity. The
decline in adjusted operating income(1) is expected to
be greater in the first half of the year.
Loblaw's strategic framework is focused on delivering the best
in food, best in health and beauty, operational excellence and
growth. This strategic framework is supported by a financial
strategy of maintaining a stable trading environment which targets
positive same-store sales and stable gross margin; surfacing
efficiencies; delivering synergies as a result of its acquisition
of Shoppers Drug Mart; and deleveraging the balance sheet.
On a full year comparative basis, reflecting 2014 financial
results for Loblaw and Shoppers Drug Mart, in 2015 Loblaw expects
to:
- maintain positive same-store sales and stable gross margin
(excluding synergies) in its Retail segment;
- achieve net synergies as result of the acquisition of Shoppers
Drug Mart approaching $200
million;
- continue to drive net efficiencies across the core grocery
business by achieving reductions in supply chain, administrative
functions and information technology ("IT"), while still investing
in key areas, like eCommerce;
- grow adjusted operating income(1) in its core
grocery business, excluding synergies;
- experience a decline in adjusted operating income(1)
in its core pharmacy business, excluding synergies, as a result of
investments in key projects and other factors;
- grow consolidated adjusted net earnings(1)
(including synergies) relative to 2014, with adjusted basic net
earnings per common share(1) being moderated due to a
significantly increased weighted average share count;
- target a capital expenditure program of approximately
$1.2 billion; and
- remain on track with its deleveraging targets, expecting to
meet its target in the first quarter of 2016.
Loblaw's expectations for 2015 also include the following:
- competitive intensity expected to remain high, but relatively
stable as industry square footage growth in supermarket-type
merchandise moderates; and
- continued pressure in its pharmacy business from the ongoing
impact of healthcare reform.
DECLARATION OF QUARTERLY DIVIDENDS
Subsequent to the end of the fourth quarter of 2014, the Company's
Board of Directors declared a quarterly dividend on GWL Common
Shares, Preferred Shares, Series I, Preferred Shares, Series III,
Preferred Shares, Series IV and Preferred Shares, Series V payable
as follows:
|
Common Shares |
$0.42 per share payable April 1,
2015, to
shareholders of record March 15, 2015; |
|
|
|
|
|
|
Preferred Shares, Series I |
$0.3625 per share payable March 15,
2015, to
shareholders of record February 28, 2015; |
|
|
|
|
|
|
Preferred Shares, Series III |
$0.3250 per share payable April 1,
2015, to
shareholders of record March 15, 2015; |
|
|
|
|
|
|
Preferred Shares, Series IV |
$0.3250 per share payable April 1,
2015, to
shareholders of record March 15, 2015; and |
|
|
|
|
|
|
Preferred Shares, Series V |
$0.296875 per share payable April 1,
2015, to
shareholders of record March 15, 2015. |
|
FORWARD-LOOKING STATEMENTS
This News Release contains forward-looking statements about the
Company's objectives, plans, goals, aspirations, strategies,
financial condition, results of operations, cash flows,
performance, prospects and opportunities. Specific forward-looking
statements in this News Release include, but are not limited to,
statements with respect to the Company's anticipated future
results, events and plans, synergies and other benefits associated
with the acquisition of Shoppers Drug Mart, future liquidity and
debt reduction targets, and planned capital investments. These
specific forward-looking statements are contained throughout this
News Release including, without limitation, the Outlook section of
this News Release. Forward-looking statements are typically
identified by words such as "expect", "anticipate", "believe",
"foresee", "could", "estimate", "goal", "intend", "plan", "seek",
"strive", "will", "may", "on-track", "maintain", "achieve", "grow",
and "should" and similar expressions, as they relate to the Company
and its management.
Forward-looking statements reflect the Company's current
estimates, beliefs and assumptions, which are based on management's
perception of historical trends, current conditions and expected
future developments, as well as other factors it believes are
appropriate in the circumstances. The Company's expectation of
operating and financial performance in 2015 is based on certain
assumptions including assumptions about sales and volume growth,
anticipated cost savings, operating efficiencies, and continued
growth from current initiatives. The Company's estimates, beliefs
and assumptions are inherently subject to significant business,
economic, competitive and other uncertainties and contingencies
regarding future events and as such, are subject to change. The
Company can give no assurance that such estimates, beliefs and
assumptions will prove to be correct.
Numerous risks and uncertainties could cause the Company's
actual results to differ materially from those expressed, implied
or projected in the forward-looking statements, including those
described in Section 16, "Enterprise Risks and Risk Management" of
the MD&A included in the Company's 2014 Annual Report and the
Company's Annual Information Form ("AIF") for the year ended
December 31, 2014. Such risks and
uncertainties include:
- failure by Loblaw to realize the anticipated strategic benefits
or operational, competitive and cost synergies following the
acquisition of Shoppers Drug Mart;
- failure by Loblaw to reduce indebtedness associated with the
acquisition of Shoppers Drug Mart to bring leverage ratios to a
level consistent with investment grade ratings;
- failure to realize benefits from investments in the Company's
IT systems, including the Company's IT systems implementation, or
unanticipated results from these initiatives;
- failure to realize anticipated results, including revenue
growth, anticipated cost savings or operating efficiencies from the
Company's major initiatives, including those from
restructuring;
- the inability of the Company's IT infrastructure to support the
requirements of the Company's business;
- changes in Loblaw's estimate of inventory cost as a result of
its IT system upgrade;
- changes to the regulation of generic prescription drug prices
and the reduction of reimbursements under public drug benefit plans
and the elimination or reduction of professional allowances paid by
drug manufacturers;
- failure to achieve desired results in labour negotiations,
including the terms of future collective bargaining agreements
which could lead to work stoppages;
- 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;
- changes in the Company's income, capital, commodity, property
and other tax and regulatory liabilities including changes in tax
laws, regulations or future assessments;
- the inability of the Company to manage inventory to minimize
the impact of obsolete or excess inventory and to control
shrink;
- 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 and fund 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
without limitation, the section entitled "Operating and Financial
Risks and Risk Management" in the Company's AIF for the year ended
December 31, 2014. 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. Except as required by law, the Company
does not undertake to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
NON-GAAP FINANCIAL MEASURES
The Company uses the following non-GAAP financial measures: EBITDA,
adjusted EBITDA and adjusted EBITDA margin, adjusted operating
income and adjusted operating margin, adjusted basic net earnings
per common share from continuing operations, adjusted debt, and
free cash flow. In addition to these items, the Company has now
detailed the following measures used by management in calculating
adjusted basic net earnings per common share from continuing
operations: adjusted net interest expense and other financing
charges, adjusted income taxes, adjusted income tax rate and
adjusted net earnings available to common shareholders of the
Company. 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.
Management uses these and other non-GAAP financial measures to
exclude the impact of certain expenses and income that must be
recognized under GAAP when analyzing consolidated and segment
underlying operating performance. The excluded items are not
necessarily reflective of the Company's underlying operating
performance and make comparisons of underlying financial
performance between periods difficult. From time to time, the
Company may exclude additional items if it believes doing so would
result in a more effective analysis of underlying operating
performance. The exclusion of certain items does not imply that
they are non-recurring.
During 2014, management made the following changes to the
calculation of certain non-GAAP financial measures when analyzing
consolidated and segment underlying operating performance:
- equity-settled share-based compensation is no longer excluded
as an adjusted item. As a result, prior year non-GAAP financial
measures including these items were restated to conform with the
current year's presentation;
- net interest expense incurred in connection with the financing
related to the acquisition of Shoppers Drug Mart is no longer
excluded as an adjusted item. These amounts were excluded in
periods prior to the closing of the acquisition of Shoppers Drug
Mart; and
- Choice Properties' general and administrative costs are no
longer excluded in periods where these costs were incurred in the
comparative period. These costs continue to be excluded in periods
where they were not incurred in the comparative period in order to
make comparisons of underlying financial information more
useful.
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 they
should not be construed as an alternative to other financial
measures determined in accordance with GAAP.
EBITDA, Adjusted EBITDA and Adjusted Operating
Income The Company believes adjusted EBITDA is useful in
assessing the underlying operating performance of the Company's
ongoing operations and in assessing the Company's ability to
generate cash flows to fund its cash requirements, including its
capital investments program and debt reduction objectives. The
Company believes adjusted operating income is also useful in
assessing the Company's underlying operating performance and in
making decisions regarding the ongoing operations of its
business.
The following table reconciles EBITDA, adjusted EBITDA and
adjusted operating income to operating income, which is reconciled
to GAAP net earnings from continuing operations attributable to
shareholders of the Company reported for the periods ended as
indicated.
|
Quarters Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31, 2013(i) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(13
weeks) |
|
|
|
|
|
|
|
|
|
|
|
|
(12 weeks) |
|
|
(unaudited)
($ millions) |
|
Weston
Foods |
|
Loblaw |
|
Other(ii) |
|
Consolidated |
|
|
|
Weston
Foods |
|
Loblaw |
|
Other(ii) |
|
Consolidated |
|
|
Net earnings
attributable to shareholders |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of the Company |
|
|
|
|
|
|
|
|
|
|
$ |
161 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
177 |
|
|
Add impact of the
following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests |
|
|
|
|
|
|
|
|
|
|
|
135 |
|
|
|
|
|
|
|
|
|
|
|
|
|
42 |
|
|
|
Income taxes |
|
|
|
|
|
|
|
|
|
|
|
95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
51 |
|
|
|
Net interest expense
and other financing charges |
|
|
|
|
|
|
|
|
|
|
|
231 |
|
|
|
|
|
|
|
|
|
|
|
|
|
106 |
|
|
Operating income |
|
$ |
74 |
|
$ |
505 |
|
$ |
43 |
|
$ |
622 |
|
|
|
$ |
40 |
|
$ |
294 |
|
$ |
42 |
|
$ |
376 |
|
|
Depreciation and
amortization |
|
|
17 |
|
|
393 |
|
|
|
|
|
410 |
|
|
|
|
16 |
|
|
196 |
|
|
|
|
|
212 |
|
|
EBITDA |
|
$ |
91 |
|
$ |
898 |
|
$ |
43 |
|
$ |
1,032 |
|
|
|
$ |
56 |
|
$ |
490 |
|
$ |
42 |
|
$ |
588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
74 |
|
$ |
505 |
|
$ |
43 |
|
$ |
622 |
|
|
|
$ |
40 |
|
$ |
294 |
|
$ |
42 |
|
$ |
376 |
|
|
Add (deduct) impact of
the following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognition of fair
value increment on |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
inventory sold |
|
|
|
|
|
69 |
|
|
|
|
|
69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible assets acquired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
with Shoppers Drug Mart |
|
|
|
|
|
124 |
|
|
|
|
|
124 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shoppers Drug Mart
acquisition costs and net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
divestitures loss |
|
|
|
|
|
14 |
|
|
|
|
|
14 |
|
|
|
|
|
|
|
7 |
|
|
|
|
|
7 |
|
|
|
Restructuring and
other charges |
|
|
2 |
|
|
|
|
|
|
|
|
2 |
|
|
|
|
3 |
|
|
32 |
|
|
|
|
|
35 |
|
|
|
Restructuring of
franchise fees |
|
|
|
|
|
(40) |
|
|
|
|
|
(40) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed asset and other
related impairments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(recoveries) |
|
|
|
|
|
1 |
|
|
|
|
|
1 |
|
|
|
|
|
|
|
(42) |
|
|
|
|
|
(42) |
|
|
|
Fair value adjustment
of Shoppers Drug Mart's |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
share-based compensation
liability |
|
|
|
|
|
2 |
|
|
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustment
of derivatives |
|
|
(7) |
|
|
4 |
|
|
|
|
|
(3) |
|
|
|
|
4 |
|
|
|
|
|
|
|
|
4 |
|
|
|
MEPP withdrawal
liability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 |
|
|
|
|
|
|
|
|
5 |
|
|
|
Net insurance
proceeds |
|
|
(12) |
|
|
|
|
|
|
|
|
(12) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation gain |
|
|
|
|
|
|
|
|
(43) |
|
|
(43) |
|
|
|
|
|
|
|
|
|
|
(42) |
|
|
(42) |
|
|
Adjusted operating
income |
|
$ |
57 |
|
$ |
679 |
|
|
|
|
$ |
736 |
|
|
|
$ |
52 |
|
$ |
291 |
|
|
|
|
$ |
343 |
|
|
Depreciation and
amortization excluding the |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
impact of the above
adjustments(iii) |
|
|
17 |
|
|
269 |
|
|
|
|
|
286 |
|
|
|
|
15 |
|
|
196 |
|
|
|
|
|
211 |
|
|
Adjusted EBITDA |
|
$ |
74 |
|
$ |
948 |
|
|
|
|
$ |
1,022 |
|
|
|
$ |
67 |
|
$ |
487 |
|
|
|
|
$ |
554 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) |
Certain 2013 figures have been
amended. See note 2 of the Company's consolidated financial
statements included in the 2014 Annual Report. |
(ii) |
Represents the effect of foreign
currency translation on a portion of the United States ("U.S.")
dollar denominated cash and short term investments held by foreign
operations. |
(iii) |
Depreciation and amortization for the
calculation of adjusted EBITDA excludes $124 million (2013 -
nil) of amortization of intangible assets acquired with Shoppers
Drug Mart at Loblaw, and in the fourth quarter of 2013,
$1 million of accelerated depreciation recorded as
restructuring and other charges at Weston Foods. |
|
|
|
Years Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31, 2013(i) |
|
|
|
|
|
|
|
|
|
|
|
|
|
(53 weeks) |
|
|
|
|
|
|
|
|
|
|
|
|
(52 weeks) |
|
|
(unaudited)
($ millions) |
|
Weston
Foods |
|
Loblaw |
|
Other(ii) |
|
Consolidated |
|
|
|
Weston
Foods |
|
Loblaw |
|
Other(ii) |
|
Consolidated |
|
|
Net earnings from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to
shareholders of the Company |
|
|
|
|
|
|
|
|
|
|
$ |
126 |
|
|
|
|
|
|
|
|
|
|
|
|
$ |
614 |
|
|
Add impact of the
following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests |
|
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
232 |
|
|
|
Income taxes |
|
|
|
|
|
|
|
|
|
|
|
24 |
|
|
|
|
|
|
|
|
|
|
|
|
|
273 |
|
|
|
Net interest expense
and other financing charges |
|
|
|
|
|
|
|
|
|
|
|
815 |
|
|
|
|
|
|
|
|
|
|
|
|
|
497 |
|
|
Operating income |
|
$ |
231 |
|
$ |
654 |
|
$ |
88 |
|
$ |
973 |
|
|
|
$ |
238 |
|
$ |
1,303 |
|
$ |
75 |
|
$ |
1,616 |
|
|
Depreciation and
amortization |
|
|
70 |
|
|
1,472 |
|
|
|
|
|
1,542 |
|
|
|
|
67 |
|
|
824 |
|
|
|
|
|
891 |
|
|
EBITDA |
|
$ |
301 |
|
$ |
2,126 |
|
$ |
88 |
|
$ |
2,515 |
|
|
|
$ |
305 |
|
$ |
2,127 |
|
$ |
75 |
|
$ |
2,507 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income |
|
$ |
231 |
|
$ |
654 |
|
$ |
88 |
|
$ |
973 |
|
|
|
$ |
238 |
|
$ |
1,303 |
|
$ |
75 |
|
$ |
1,616 |
|
|
Add (deduct) impact of
the following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognition of fair value increment on |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
inventory sold |
|
|
|
|
|
798 |
|
|
|
|
|
798 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets acquired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
with Shoppers Drug Mart |
|
|
|
|
|
417 |
|
|
|
|
|
417 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Charge related to inventory measurement and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other conversion differences |
|
|
|
|
|
190 |
|
|
|
|
|
190 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shoppers Drug Mart acquisition costs and
net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
divestitures loss |
|
|
|
|
|
72 |
|
|
|
|
|
72 |
|
|
|
|
|
|
|
16 |
|
|
|
|
|
16 |
|
|
|
Restructuring and
other charges |
|
|
7 |
|
|
46 |
|
|
|
|
|
53 |
|
|
|
|
6 |
|
|
35 |
|
|
|
|
|
41 |
|
|
|
Restructuring of
franchise fees |
|
|
|
|
|
(40) |
|
|
|
|
|
(40) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed asset and other related impairments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(recoveries) |
|
|
|
|
|
16 |
|
|
|
|
|
16 |
|
|
|
|
|
|
|
(32) |
|
|
|
|
|
(32) |
|
|
|
Choice Properties
general and administrative costs |
|
|
|
|
|
9 |
|
|
|
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustment of Shoppers Drug Mart's |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
share-based compensation
liability |
|
|
|
|
|
7 |
|
|
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Choice Properties
start-up costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3 |
|
|
|
|
|
3 |
|
|
|
Defined benefit plan
amendments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(51) |
|
|
|
|
|
(51) |
|
|
|
Fair value adjustment
of derivatives |
|
|
(4) |
|
|
4 |
|
|
|
|
|
|
|
|
|
|
10 |
|
|
|
|
|
|
|
|
10 |
|
|
|
MEPP settlement
payment |
|
|
8 |
|
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEPP withdrawal
liability |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5 |
|
|
|
|
|
|
|
|
5 |
|
|
|
Net insurance
proceeds |
|
|
(1) |
|
|
|
|
|
|
|
|
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
translation gain |
|
|
|
|
|
|
|
|
(88) |
|
|
(88) |
|
|
|
|
|
|
|
|
|
|
(75) |
|
|
(75) |
|
|
Adjusted operating
income |
|
$ |
241 |
|
$ |
2,173 |
|
|
|
|
$ |
2,414 |
|
|
|
$ |
259 |
|
$ |
1,274 |
|
|
|
|
$ |
1,533 |
|
|
Depreciation and amortization excluding the |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
impact of the above
adjustments(iii) |
|
|
70 |
|
|
1,055 |
|
|
|
|
|
1,125 |
|
|
|
|
63 |
|
|
824 |
|
|
|
|
|
887 |
|
|
Adjusted EBITDA |
|
$ |
311 |
|
$ |
3,228 |
|
|
|
|
$ |
3,539 |
|
|
|
$ |
322 |
|
$ |
2,098 |
|
|
|
|
$ |
2,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) |
Certain 2013 figures have been
amended. See note 2 of the Company's consolidated financial
statements included in the 2014 Annual Report. |
(ii) |
Represents the effect of
foreign currency translation on a portion of the U.S. dollar
denominated cash and short term investments held by foreign
operations. |
(iii) |
Year-to-date depreciation and
amortization for the calculation of adjusted EBITDA at Loblaw
excludes $417 million (2013 - nil) of amortization of
intangible assets acquired with Shoppers Drug Mart, and in 2013,
$4 million of accelerated depreciation recorded as
restructuring and other charges at Weston Foods. |
The year-over-year change in the following items influenced
operating income in the fourth quarter of 2014:
Recognition of the fair value increment on inventory
sold In connection with the acquisition of Shoppers
Drug Mart, acquired assets and liabilities were recorded on the
Company's consolidated balance sheet at their fair value. This
resulted in a fair value adjustment to Shoppers Drug Mart inventory
on the date of acquisition representing the difference between
inventory cost and its fair value. In the fourth quarter of 2014,
$69 million (2013 - nil) was
recognized in gross profit and operating income.
Amortization of intangible assets acquired
with Shoppers Drug Mart The acquisition of
Shoppers Drug Mart in the second quarter of 2014 included
approximately $6 billion of
definite life intangible assets, which are being amortized over
their estimated useful lives. In the fourth quarter of 2014,
$124 million (2013 - nil) of
amortization was recognized in operating income. Loblaw expects to
recognize annual amortization of approximately $550 million associated with the acquired
intangible assets over the next ten years and decreasing
thereafter.
Shoppers Drug Mart acquisition costs and net
divestitures loss In the fourth quarter of 2014, Loblaw
recognized a net loss of $14 million
(2013 - nil) related to store divestitures required by the
Competition Bureau as a result of Loblaw's acquisition of Shoppers
Drug Mart. Further adjustments for divestiture gains or losses will
be made when the remaining three Shoppers Drug Mart stores are sold
in the first quarter of 2015. In connection with the acquisition of
Shoppers Drug Mart, in the fourth quarter of 2013 Loblaw recorded
$7 million of acquisition
costs.
Restructuring and other charges The
Company continuously evaluates strategic and cost reduction
initiatives related to its store infrastructure, manufacturing
assets, distribution networks and administrative infrastructure
with the objective of ensuring a low cost operating structure.
Restructuring activities related to these initiatives are
ongoing.
Restructuring of franchise fees In the
fourth quarter of 2014, Loblaw restructured its fee arrangements
with franchisees of certain franchise banners. As a result of this
restructuring, Loblaw re-evaluated the recoverable amount of
franchise related financial instruments and recorded a
reversal of previously recorded impairment of $40 million (2013 - nil).
Fixed asset and other related impairments
(recoveries) At each balance sheet date, the Company
assesses and, when required, records impairments and reversals of
previous impairments related to the carrying value of its fixed
assets, investment properties and intangible assets. In the fourth
quarter of 2014, Loblaw recorded a net charge of $1 million (2013 - net recoveries of
$42 million) related to fixed
assets and other related impairments.
Fair value adjustment of Shoppers Drug Mart's share-based
compensation liability In the second quarter of 2014,
in conjunction with Loblaw's acquisition of Shoppers Drug Mart,
Loblaw converted certain Shoppers Drug Mart cash-settled
share-based compensation awards to cash-settled awards based on
Loblaw's common shares. Loblaw is exposed to market price
fluctuations in its common share price as these awards are settled
in cash and the associated liability is recorded at fair value each
reporting date based on the market price of Loblaw's common shares.
In the fourth quarter of 2014, Loblaw recorded a loss of
$2 million (2013 - nil). On
November 10, 2014, Loblaw
amended these awards so they are settled in shares and accordingly
exposure to market price fluctuations has been eliminated.
Fair value adjustment of derivatives The
Company is exposed to commodity price and U.S. dollar exchange rate
fluctuations primarily as a result of purchases of certain raw
materials, fuel and utilities. In accordance with the Company's
commodity risk management policy, the Company enters into commodity
and foreign currency derivatives to reduce the impact of price
fluctuations in forecasted raw material and fuel purchases over a
specified period of time. These derivatives are not acquired for
trading or speculative purposes. Pursuant to the Company's
derivative instruments accounting policy, certain changes in fair
value, which include realized and unrealized gains and losses
related to future purchases of raw materials and fuel, are recorded
in operating income. In the fourth quarter of 2014, Weston Foods
recorded income of $7 million
(2013 - charge of $4 million)
and Loblaw recorded a charge of $4
million (2013 - nil), related to the fair value adjustment
of commodity and foreign currency derivatives. Despite the impact
of accounting for these commodity and foreign currency derivatives
on the Company's reported results, the derivatives have the
economic impact of largely mitigating the associated risks arising
from price and exchange rate fluctuations in the underlying
commodities.
Multi-employer pension plan ("MEPP") withdrawal
liability In 2012, Weston Foods withdrew from one of
the U.S. MEPPs in which it participated. The Company recorded
$5 million (U.S. $5 million) in the fourth quarter of 2013 in
selling, general and administrative expenses associated with its
withdrawal liability.
Net insurance proceeds On August 31, 2014, a weather event in the U.S.
caused significant damage to Weston Foods inventories stored at a
third-party warehouse. During the fourth quarter of 2014, net
proceeds of $12 million (U.S.
$11 million) were received and
recorded in selling, general and administrative expenses.
Additional losses or charges associated with this inventory will be
recorded as incurred and any additional proceeds will be recorded
as they are received.
Foreign currency translation gains and
losses The Company's consolidated financial
statements are expressed in Canadian dollars. A portion of the
Company's (excluding Loblaw's) net assets are denominated in U.S.
dollars and as a result, the Company is exposed to foreign currency
translation gains and losses. The impact of foreign currency
translation on a portion of the U.S. dollar denominated net assets,
primarily cash and short term investments held by foreign
operations, is recorded in operating income. In the fourth quarter
of 2014, a foreign currency translation gain of $43 million (2013 - $42 million) was recorded in operating
income as a result of the appreciation of the U.S. dollar relative
to the Canadian dollar.
Adjusted Net Interest Expense and Other Financing
Charges The Company believes adjusted net interest
expense and other financing charges is useful in assessing the
ongoing net financing costs of the Company.
The following table reconciles adjusted net interest expense and
other financing charges to GAAP net interest expense and other
financing charges reported for the periods ended as indicated.
|
|
Quarters Ended |
|
|
Years Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
Dec. 31, 2014 |
|
|
Dec. 31, 2013 |
|
|
Dec. 31,
2014 |
|
|
Dec. 31, 2013 |
|
($ millions) |
|
(13 weeks) |
|
|
(12 weeks) |
|
|
(53
weeks) |
|
|
(52 weeks) |
|
Net
interest expense and other financing charges |
|
$ |
231 |
|
|
$ |
106 |
|
|
$ |
815 |
|
|
$ |
497 |
|
Less: |
Fair value adjustment of the forward sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
agreement for 9.6 million Loblaw |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
common shares |
|
|
59 |
|
|
|
(34) |
|
|
|
199 |
|
|
|
(1) |
|
|
Accelerated amortization of deferred |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
financing costs |
|
|
5 |
|
|
|
|
|
|
|
23 |
|
|
|
|
|
|
Shoppers Drug Mart net financing charges |
|
|
|
|
|
|
14 |
|
|
|
15 |
|
|
|
15 |
|
|
Fair
value adjustment of Trust Unit liability |
|
|
14 |
|
|
|
23 |
|
|
|
12 |
|
|
|
18 |
|
|
Choice
Properties IPO transaction costs |
|
|
|
|
|
|
1 |
|
|
|
|
|
|
|
44 |
|
|
Early debt settlement
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
18 |
|
Adjusted net interest expense and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
financing charges |
|
$ |
153 |
|
|
$ |
102 |
|
|
$ |
566 |
|
|
$ |
403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
In addition to certain items described in the "EBITDA, Adjusted
EBITDA and Adjusted Operating Income" section above, the following
items impacted net interest expense and other financing charges in
the fourth quarters of 2014 and 2013:
Fair value adjustment of the forward sale agreement for
9.6 million Loblaw common shares The fair
value adjustment of the forward sale agreement for 9.6 million
Loblaw common shares is non-cash and is included in net interest
expense and other financing charges. The adjustment is determined
by changes in the value of the underlying Loblaw common shares. In
the fourth quarter of 2014, a charge of $59 million (2013 - income of $34 million) was recorded in net interest
expense and other financing charges as a result of the changes in
the market price of Loblaw common shares. An increase (decrease) in
the market price of Loblaw common shares results in a charge
(income) to net interest expense and other financing charges.
Accelerated amortization of deferred financing
costs In the fourth quarter of 2014, Loblaw recorded
a charge of $5 million (2013 -
nil) related to the accelerated amortization of deferred financing
costs due to the repayment of $321 million of Loblaw's term loan
facility.
Shoppers Drug Mart net financing charges In
addition to the acquisition costs described in the EBITDA, Adjusted
EBITDA and Adjusted Operating Income section above, during the
fourth quarter of 2013, net charges of $14 million were incurred in connection with
financing related to the acquisition of Shoppers Drug Mart.
Fair value adjustment of Trust Unit
liability The Company is exposed to market price
fluctuations as a result of the Choice Properties Trust Units
held by unitholders other than the Company. These Trust Units are
presented as a liability on the Company's consolidated balance
sheets as they are redeemable for cash at the option of the holder,
subject to certain restrictions. This liability is recorded at fair
value at each reporting period based on the market price of
Trust Units at the end of each period. In the fourth quarter
of 2014, the Company recorded a loss of $14
million (2013 - $23 million)
in net interest expense and other financing charges related to the
fair value adjustment of the Trust Unit liability as a result
of an increase in the market price of Trust Units. An increase
(decrease) in the market price of Trust Units results in a charge
(income) to net interest expense and other financing charges.
Choice Properties initial public offering ("IPO")
transaction costs In connection with the IPO of Choice
Properties in the third quarter of 2013, transaction costs of
$1 million were incurred in the
fourth quarter of 2013.
Adjusted Income Taxes and Adjusted Income Tax Rate
The Company believes the adjusted income tax rate applicable to
adjusted earnings before taxes is useful in assessing the
underlying operating performance of its business.
The following table reconciles the effective income tax rate
applicable to adjusted earnings before taxes to the GAAP effective
income tax rate applicable to earnings before taxes as reported for
the periods ended as indicated.
|
|
Quarters Ended |
|
|
Years Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
Dec. 31, 2014 |
|
|
Dec.
31, 2013(i) |
|
|
Dec. 31, 2014 |
|
|
Dec.
31, 2013(i) |
|
($ millions except where otherwise
indicated) |
|
(13 weeks) |
|
|
(12 weeks) |
|
|
(53 weeks) |
|
|
(52 weeks) |
|
Adjusted operating
income(ii) |
|
$ |
736 |
|
|
$ |
343 |
|
|
$ |
2,414 |
|
|
$ |
1,533 |
|
Adjusted net interest expense and other financing
charges(ii) |
|
|
153 |
|
|
|
102 |
|
|
|
566 |
|
|
|
403 |
|
Adjusted earnings
before taxes |
|
$ |
583 |
|
|
$ |
241 |
|
|
$ |
1,848 |
|
|
$ |
1,130 |
|
Income taxes |
|
$ |
95 |
|
|
$ |
51 |
|
|
$ |
24 |
|
|
$ |
273 |
|
Less: Tax impact of items excluded
from adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
earnings before
taxes(iii) |
|
|
(60) |
|
|
|
6 |
|
|
|
(457) |
|
|
|
(12) |
|
Adjusted income taxes |
|
$ |
155 |
|
|
$ |
45 |
|
|
$ |
481 |
|
|
$ |
285 |
|
Effective income tax rate
applicable to earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
before taxes |
|
|
24.3% |
|
|
|
18.9% |
|
|
|
15.2% |
|
|
|
24.4% |
|
Adjusted income tax rate applicable
to adjusted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
earnings before taxes |
|
|
26.6% |
|
|
|
18.7% |
|
|
|
26.0% |
|
|
|
25.2% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) |
Certain 2013 figures have been
amended. See note 2 of the Company's consolidated financial
statements included in the 2014 Annual Report. |
(ii) |
See reconciliations of adjusted
operating income and adjusted net interest expense and other
financing charges above. |
(iii) |
See the EBITDA, adjusted EBITDA and
adjusted operating income table and the adjusted net interest
expense and other financing charges table above for a complete list
of items excluded from adjusted earnings before taxes. |
Adjusted Basic Net Earnings per Common Share from Continuing
Operations and Adjusted Net Earnings from Continuing
Operations The Company believes adjusted basic net
earnings per common share from continuing operations and adjusted
net earnings from continuing operations are useful in assessing the
Company's underlying operating performance and in making decisions
regarding the ongoing operations of its business.
The following table reconciles adjusted basic net earnings per
common share from continuing operations and adjusted net earnings
from continuing operations to GAAP basic net earnings per common
share from continuing operations reported for the periods ended as
indicated.
|
|
Quarters Ended |
|
|
|
Years Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
Dec. 31,
2014 |
|
|
|
Dec.
31, 2013(i) |
|
|
|
Dec. 31, 2014 |
|
|
|
Dec.
31, 2013(i) |
|
|
($) |
|
(13 weeks) |
|
|
|
(12
weeks) |
|
|
|
(53 weeks) |
|
|
|
(52 weeks) |
|
|
Basic net earnings per
common share from |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
continuing operations |
|
$ |
1.18 |
|
|
|
$ |
1.31 |
|
|
|
$ |
0.64 |
|
|
|
$ |
4.47 |
|
|
Add (deduct) impact of
the following(ii): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair value adjustment
of the forward sale |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
agreement
for 9.6 million Loblaw common shares |
|
|
0.35 |
|
|
|
|
(0.21) |
|
|
|
|
1.17 |
|
|
|
|
(0.01) |
|
|
|
Recognition of fair
value increment on inventory sold |
|
|
0.17 |
|
|
|
|
|
|
|
|
|
2.08 |
|
|
|
|
|
|
|
|
Amortization of
intangible assets acquired |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
with Shoppers Drug Mart |
|
|
0.33 |
|
|
|
|
|
|
|
|
|
1.09 |
|
|
|
|
|
|
|
|
Charge related to
inventory measurement and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
conversion differences |
|
|
|
|
|
|
|
|
|
|
|
|
0.49 |
|
|
|
|
|
|
|
|
Shoppers Drug Mart
acquisition costs and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net financing charges |
|
|
0.04 |
|
|
|
|
0.08 |
|
|
|
|
0.29 |
|
|
|
|
0.13 |
|
|
|
Restructuring and
other charges |
|
|
0.01 |
|
|
|
|
0.14 |
|
|
|
|
0.17 |
|
|
|
|
0.17 |
|
|
|
Restructuring of
franchise fees |
|
|
(0.11) |
|
|
|
|
|
|
|
|
|
(0.11) |
|
|
|
|
|
|
|
|
Fixed asset and other
related impairments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(recoveries) |
|
|
|
|
|
|
|
(0.14) |
|
|
|
|
0.05 |
|
|
|
|
(0.11) |
|
|
|
Choice Properties
general and administrative costs |
|
|
|
|
|
|
|
|
|
|
|
|
0.03 |
|
|
|
|
|
|
|
|
Fair value adjustment
of Shoppers Drug Mart's |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
share-based compensation
liability |
|
|
|
|
|
|
|
|
|
|
|
|
0.02 |
|
|
|
|
|
|
|
|
Choice Properties
start-up and IPO transaction costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.17 |
|
|
|
Defined benefit plan
amendments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(0.18) |
|
|
|
Fair value adjustment
of derivatives |
|
|
(0.03) |
|
|
|
|
0.03 |
|
|
|
|
(0.01) |
|
|
|
|
0.06 |
|
|
|
MEPP settlement
payment |
|
|
|
|
|
|
|
|
|
|
|
|
0.04 |
|
|
|
|
|
|
|
|
MEPP withdrawal
liability |
|
|
|
|
|
|
|
0.02 |
|
|
|
|
|
|
|
|
|
0.02 |
|
|
|
Net insurance
proceeds |
|
|
(0.06) |
|
|
|
|
|
|
|
|
|
(0.01) |
|
|
|
|
|
|
|
|
Fair value adjustment
of Trust Unit liability |
|
|
0.03 |
|
|
|
|
0.08 |
|
|
|
|
0.04 |
|
|
|
|
0.06 |
|
|
|
Accelerated
amortization of deferred financing costs |
|
|
0.01 |
|
|
|
|
|
|
|
|
|
0.06 |
|
|
|
|
|
|
|
|
Early debt settlement
costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.06 |
|
|
|
Foreign currency
translation gain |
|
|
(0.34) |
|
|
|
|
(0.33) |
|
|
|
|
(0.69) |
|
|
|
|
(0.59) |
|
|
Adjusted basic net
earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
from continuing operations |
|
$ |
1.58 |
|
|
|
$ |
0.98 |
|
|
|
$ |
5.35 |
|
|
|
$ |
4.25 |
|
|
Weighted average
common shares outstanding (millions) |
|
|
127.7 |
|
|
|
|
127.7 |
|
|
|
|
127.8 |
|
|
|
|
127.6 |
|
|
Adjusted net earnings
from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to shareholders of the
Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars) |
|
$ |
212 |
|
|
|
$ |
135 |
|
|
|
$ |
728 |
|
|
|
$ |
586 |
|
|
Prescribed dividends
on preferred shares in share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
capital (millions of
Canadian dollars) |
|
|
10 |
|
|
|
|
10 |
|
|
|
|
44 |
|
|
|
|
44 |
|
|
Adjusted net earnings
from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
available to common shareholders of the
Company |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars) |
|
$ |
202 |
|
|
|
$ |
125 |
|
|
|
$ |
684 |
|
|
|
$ |
542 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) |
Certain 2013 figures have been
amended. See note 2 of the Company's consolidated financial
statements included in the 2014 Annual Report. |
(ii) |
Net of income taxes and
non-controlling interests, as applicable. |
Adjusted Debt The Company believes adjusted debt is
useful in assessing the amount of financial leverage employed. The
Company changed its definition of adjusted debt in the second
quarter of 2014 to include capital securities to better align with
management's definition for deleveraging purposes. In the table
below, the Company has presented adjusted debt as at March 28, 2014, the date of acquisition of
Shoppers Drug Mart, as this is the baseline for the Company's debt
reduction targets.
The following table reconciles adjusted debt to GAAP measures
reported as at the periods ended as indicated.
|
|
As at |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions) |
|
Dec. 31, 2014 |
|
|
|
Mar. 28, 2014 |
|
|
|
Dec.
31, 2013 |
|
|
Bank indebtedness |
|
$ |
162 |
|
|
|
$ |
295 |
|
|
|
|
|
|
|
Short term debt |
|
|
1,101 |
|
|
|
|
1,070 |
|
|
|
$ |
1,060 |
|
|
Long term debt due
within one year |
|
|
420 |
|
|
|
|
902 |
|
|
|
|
1,208 |
|
|
Long term debt |
|
|
12,306 |
|
|
|
|
12,327 |
|
|
|
|
7,736 |
|
|
Trust Unit
liability |
|
|
494 |
|
|
|
|
487 |
|
|
|
|
478 |
|
|
Capital
securities |
|
|
225 |
|
|
|
|
224 |
|
|
|
|
224 |
|
|
Certain other
liabilities |
|
|
28 |
|
|
|
|
39 |
|
|
|
|
39 |
|
|
Fair value of
financial derivatives related to the above debt |
|
|
(367) |
|
|
|
|
(484) |
|
|
|
|
(524) |
|
|
Total debt |
|
$ |
14,369 |
|
|
|
$ |
14,860 |
|
|
|
$ |
10,221 |
|
|
Less: |
Independent securitization trusts
in short term debt |
|
|
605 |
|
|
|
|
605 |
|
|
|
|
605 |
|
|
|
Independent securitization trusts
in long term debt |
|
|
750 |
|
|
|
|
750 |
|
|
|
|
750 |
|
|
|
Trust Unit liability |
|
|
494 |
|
|
|
|
487 |
|
|
|
|
478 |
|
|
|
Independent funding trusts |
|
|
498 |
|
|
|
|
469 |
|
|
|
|
475 |
|
|
|
Guaranteed Investment
Certificates |
|
|
634 |
|
|
|
|
443 |
|
|
|
|
430 |
|
|
Adjusted debt |
|
|
$ |
11,388 |
|
|
|
$ |
12,106 |
|
|
|
$ |
7,483 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow The Company believes free cash flow
is useful in assessing the Company's cash available for additional
financing and investing activities. The Company changed its
definition of free cash flow in the fourth quarter of 2014 to
better align with management's definition.
The following table reconciles free cash flow to GAAP measures
reported for the periods ended as indicated.
|
|
Quarters Ended |
|
|
Years Ended |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
Dec. 31, 2014 |
|
|
|
Dec.
31, 2013 |
|
|
|
Dec. 31, 2014 |
|
|
|
Dec.
31, 2013 |
|
($ millions) |
|
(13
weeks) |
|
|
|
(12 weeks) |
|
|
|
(53
weeks) |
|
|
|
(52 weeks) |
|
Cash flows from operating activities of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
continuing operations |
|
$ |
1,090 |
|
|
|
$ |
813 |
|
|
|
$ |
2,851 |
|
|
|
$ |
1,738 |
|
Less: |
Interest paid |
|
|
139 |
|
|
|
|
117 |
|
|
|
|
604 |
|
|
|
|
466 |
|
|
Fixed asset purchases |
|
|
405 |
|
|
|
|
341 |
|
|
|
|
1,124 |
|
|
|
|
976 |
|
|
Intangible asset additions |
|
|
42 |
|
|
|
|
|
|
|
|
|
90 |
|
|
|
|
12 |
|
Free cash flow |
|
|
$ |
504 |
|
|
|
$ |
355 |
|
|
|
$ |
1,033 |
|
|
|
$ |
284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 audited annual consolidated financial statements for the
year ended December 31, 2014.
This financial information does not contain all disclosures
required by IFRS, and accordingly, this financial information
should be read in conjunction with the Company's audited annual
consolidated financial statements and MD&A for the year ended
December 31, 2014 which is
contained in the Company's 2014 Annual Report available in the
Investor Centre section of the Company's website at
www.weston.ca.
Consolidated Statements of Earnings |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the periods
ended |
|
Dec. 31, 2014 |
|
|
|
Dec.
31, 2013(3) |
|
|
|
Dec. 31, 2014 |
|
|
|
Dec.
31, 2013(3) |
|
(millions of Canadian dollars except where otherwise
indicated) |
|
(13 weeks) |
|
|
|
(12 weeks) |
|
|
|
(53 weeks) |
|
|
|
(52
weeks) |
|
Revenue |
|
$ |
11,734 |
|
|
|
$ |
7,919 |
|
|
|
$ |
43,918 |
|
|
|
$ |
33,582 |
|
Operating
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of inventories sold |
|
|
8,423 |
|
|
|
|
5,959 |
|
|
|
|
32,727 |
|
|
|
|
25,291 |
|
|
Selling, general and
administrative expenses |
|
|
2,689 |
|
|
|
|
1,584 |
|
|
|
|
10,218 |
|
|
|
|
6,675 |
|
|
|
|
11,112 |
|
|
|
|
7,543 |
|
|
|
|
42,945 |
|
|
|
|
31,966 |
|
Operating
Income |
|
|
622 |
|
|
|
|
376 |
|
|
|
|
973 |
|
|
|
|
1,616 |
|
Net Interest
Expense and Other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Charges |
|
|
231 |
|
|
|
|
106 |
|
|
|
|
815 |
|
|
|
|
497 |
|
Earnings Before
Income Taxes |
|
|
391 |
|
|
|
|
270 |
|
|
|
|
158 |
|
|
|
|
1,119 |
|
Income Taxes |
|
|
95 |
|
|
|
|
51 |
|
|
|
|
24 |
|
|
|
|
273 |
|
Net Earnings from
Continuing Operations |
|
|
296 |
|
|
|
|
219 |
|
|
|
|
134 |
|
|
|
|
846 |
|
Attributable to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the Company |
|
|
161 |
|
|
|
|
177 |
|
|
|
|
126 |
|
|
|
|
614 |
|
|
Non-Controlling Interests |
|
|
135 |
|
|
|
|
42 |
|
|
|
|
8 |
|
|
|
|
232 |
|
Net Earnings from
Continuing Operations |
|
|
296 |
|
|
|
|
219 |
|
|
|
|
134 |
|
|
|
|
846 |
|
Discontinued
Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
58 |
|
Net
Earnings |
|
$ |
296 |
|
|
|
$ |
219 |
|
|
|
$ |
134 |
|
|
|
$ |
904 |
|
Net Earnings per
Common Share ($) - Basic |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations |
|
$ |
1.18 |
|
|
|
$ |
1.31 |
|
|
|
$ |
0.64 |
|
|
|
$ |
4.47 |
|
|
Discontinued Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.46 |
|
|
Net Earnings |
|
$ |
1.18 |
|
|
|
$ |
1.31 |
|
|
|
$ |
0.64 |
|
|
|
$ |
4.93 |
|
Net Earnings per
Common Share ($) - Diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing Operations |
|
$ |
1.17 |
|
|
|
$ |
1.30 |
|
|
|
$ |
0.64 |
|
|
|
$ |
4.43 |
|
|
Discontinued Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
0.46 |
|
|
Net Earnings |
|
$ |
1.17 |
|
|
|
$ |
1.30 |
|
|
|
$ |
0.64 |
|
|
|
$ |
4.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Balance Sheets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at December 31 |
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars) |
|
2014 |
|
|
|
2013(3) |
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
Current
Assets |
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,333 |
|
|
|
$ |
2,869 |
|
|
|
Short term investments |
|
|
1,072 |
|
|
|
|
1,490 |
|
|
|
Accounts receivable |
|
|
1,318 |
|
|
|
|
697 |
|
|
|
Credit card receivables |
|
|
2,630 |
|
|
|
|
2,538 |
|
|
|
Inventories |
|
|
4,463 |
|
|
|
|
2,244 |
|
|
|
Income taxes recoverable |
|
|
30 |
|
|
|
|
|
|
|
|
Prepaid expenses and other
assets |
|
|
223 |
|
|
|
|
84 |
|
|
|
Assets held for sale |
|
|
23 |
|
|
|
|
22 |
|
|
Total Current
Assets |
|
|
11,092 |
|
|
|
|
9,944 |
|
|
Fixed Assets |
|
|
11,436 |
|
|
|
|
9,655 |
|
|
Investment
Properties |
|
|
185 |
|
|
|
|
99 |
|
|
Intangible Assets |
|
|
9,288 |
|
|
|
|
215 |
|
|
Goodwill |
|
|
3,681 |
|
|
|
|
1,365 |
|
|
Deferred Income
Taxes |
|
|
215 |
|
|
|
|
307 |
|
|
Security Deposits |
|
|
92 |
|
|
|
|
1,791 |
|
|
Franchise Loans
Receivable |
|
|
399 |
|
|
|
|
375 |
|
|
Other Assets |
|
|
683 |
|
|
|
|
853 |
|
|
Total
Assets |
|
$ |
37,071 |
|
|
|
$ |
24,604 |
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Bank indebtedness |
|
$ |
162 |
|
|
|
|
|
|
|
|
Trade payables and other
liabilities |
|
|
4,832 |
|
|
|
$ |
3,989 |
|
|
|
Provisions |
|
|
130 |
|
|
|
|
120 |
|
|
|
Income taxes payable |
|
|
|
|
|
|
|
2 |
|
|
|
Short term debt |
|
|
1,101 |
|
|
|
|
1,060 |
|
|
|
Long term debt due within one
year |
|
|
420 |
|
|
|
|
1,208 |
|
|
|
Associate interest |
|
|
193 |
|
|
|
|
|
|
|
|
Capital securities |
|
|
225 |
|
|
|
|
|
|
|
Total Current
Liabilities |
|
|
7,063 |
|
|
|
|
6,379 |
|
|
Provisions |
|
|
103 |
|
|
|
|
81 |
|
|
Long Term Debt |
|
|
12,306 |
|
|
|
|
7,736 |
|
|
Trust Unit
Liability |
|
|
494 |
|
|
|
|
478 |
|
|
Deferred Income
Taxes |
|
|
2,007 |
|
|
|
|
187 |
|
|
Other Liabilities |
|
|
849 |
|
|
|
|
618 |
|
|
Capital
Securities |
|
|
|
|
|
|
|
224 |
|
|
Total
Liabilities |
|
|
22,822 |
|
|
|
|
15,703 |
|
|
EQUITY |
|
|
|
|
|
|
|
|
|
|
Share Capital |
|
|
997 |
|
|
|
|
972 |
|
|
Contributed
Surplus |
|
|
80 |
|
|
|
|
65 |
|
|
Retained Earnings |
|
|
6,125 |
|
|
|
|
5,260 |
|
|
Accumulated Other
Comprehensive Income |
|
|
87 |
|
|
|
|
16 |
|
|
Total Equity
Attributable to Shareholders of the Company |
|
|
7,289 |
|
|
|
|
6,313 |
|
|
Non-Controlling
Interests |
|
|
6,960 |
|
|
|
|
2,588 |
|
|
Total
Equity |
|
|
14,249 |
|
|
|
|
8,901 |
|
|
Total Liabilities
and Equity |
|
$ |
37,071 |
|
|
|
$ |
24,604 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Cash Flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the periods
ended |
|
Dec. 31,
2014 |
|
|
Dec. 31,
2013(3) |
|
|
Dec. 31, 2014 |
|
|
Dec. 31,
2013(3) |
|
|
(millions of Canadian
dollars) |
|
(13 weeks) |
|
|
(12 weeks) |
|
|
(53 weeks) |
|
|
(52 weeks) |
|
|
Operating
Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings from
continuing operations |
|
$ |
296 |
|
|
$ |
219 |
|
|
$ |
134 |
|
|
$ |
846 |
|
|
|
Income taxes |
|
|
95 |
|
|
|
51 |
|
|
|
24 |
|
|
|
273 |
|
|
|
Net interest expense
and other financing charges |
|
|
231 |
|
|
|
106 |
|
|
|
815 |
|
|
|
497 |
|
|
|
Depreciation and
amortization |
|
|
410 |
|
|
|
212 |
|
|
|
1,542 |
|
|
|
891 |
|
|
|
Recognition of fair
value increment on inventory sold |
|
|
69 |
|
|
|
|
|
|
|
798 |
|
|
|
|
|
|
|
Charge related to
inventory measurement and |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other conversion differences |
|
|
|
|
|
|
|
|
|
|
190 |
|
|
|
|
|
|
|
Foreign currency
translation gain |
|
|
(43) |
|
|
|
(42) |
|
|
|
(88) |
|
|
|
(75) |
|
|
|
Gain on defined
benefit plan amendments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(51) |
|
|
|
Settlement of
derivatives |
|
|
|
|
|
|
76 |
|
|
|
|
|
|
|
59 |
|
|
|
Change in credit card
receivables |
|
|
(81) |
|
|
|
(108) |
|
|
|
(92) |
|
|
|
(233) |
|
|
|
Change in non-cash
working capital |
|
|
172 |
|
|
|
398 |
|
|
|
(319) |
|
|
|
(245) |
|
|
|
Income taxes paid |
|
|
(74) |
|
|
|
(75) |
|
|
|
(317) |
|
|
|
(271) |
|
|
|
Interest received |
|
|
4 |
|
|
|
7 |
|
|
|
35 |
|
|
|
59 |
|
|
|
Other |
|
|
11 |
|
|
|
(31) |
|
|
|
129 |
|
|
|
(12) |
|
|
Cash Flows from
Operating Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of Continuing Operations |
|
|
1,090 |
|
|
|
813 |
|
|
|
2,851 |
|
|
|
1,738 |
|
|
Investing
Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed asset
purchases |
|
|
(405) |
|
|
|
(341) |
|
|
|
(1,124) |
|
|
|
(976) |
|
|
|
Change in short term
investments |
|
|
(12) |
|
|
|
765 |
|
|
|
502 |
|
|
|
730 |
|
|
|
Acquisition of
Shoppers Drug Mart, net of cash acquired |
|
|
|
|
|
|
|
|
|
|
(6,619) |
|
|
|
|
|
|
|
Change in franchise
investments and other receivables |
|
|
(4) |
|
|
|
(22) |
|
|
|
(25) |
|
|
|
5 |
|
|
|
Change in security
deposits |
|
|
1 |
|
|
|
201 |
|
|
|
1,704 |
|
|
|
(1,435) |
|
|
|
Intangible asset
additions |
|
|
(42) |
|
|
|
|
|
|
|
(90) |
|
|
|
(12) |
|
|
|
Investment in joint
venture |
|
|
(6) |
|
|
|
|
|
|
|
(6) |
|
|
|
|
|
|
|
Other |
|
|
18 |
|
|
|
2 |
|
|
|
74 |
|
|
|
13 |
|
|
Cash Flows (used in) from Investing
Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of Continuing Operations |
|
|
(450) |
|
|
|
605 |
|
|
|
(5,584) |
|
|
|
(1,675) |
|
|
Financing
Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in bank
indebtedness |
|
|
(161) |
|
|
|
|
|
|
|
(133) |
|
|
|
|
|
|
|
Change in Associate
interest |
|
|
16 |
|
|
|
|
|
|
|
19 |
|
|
|
|
|
|
|
Change in short term
debt |
|
|
11 |
|
|
|
(289) |
|
|
|
41 |
|
|
|
(259) |
|
|
|
Long term debt |
- Issued, net of financing
charges |
|
|
126 |
|
|
|
473 |
|
|
|
6,036 |
|
|
|
2,749 |
|
|
|
|
- Retired |
|
|
(341) |
|
|
|
(469) |
|
|
|
(3,536) |
|
|
|
(871) |
|
|
|
Trust Units |
- Issued, net of financing
charges |
|
|
1 |
|
|
|
(1) |
|
|
|
1 |
|
|
|
416 |
|
|
|
Share capital |
- Issued |
|
|
2 |
|
|
|
|
|
|
|
21 |
|
|
|
17 |
|
|
|
|
- Purchased and held in trust |
|
|
|
|
|
|
|
|
|
|
(11) |
|
|
|
(15) |
|
|
|
|
- Retired |
|
|
(16) |
|
|
|
|
|
|
|
(29) |
|
|
|
(42) |
|
|
|
Loblaw share capital |
- Issued |
|
|
19 |
|
|
|
8 |
|
|
|
129 |
|
|
|
75 |
|
|
|
|
- Purchased and held in trust |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(46) |
|
|
|
|
- Retired |
|
|
(29) |
|
|
|
|
|
|
|
(178) |
|
|
|
(73) |
|
|
|
Interest paid |
|
|
(139) |
|
|
|
(117) |
|
|
|
(604) |
|
|
|
(466) |
|
|
|
Dividends |
- To common
shareholders |
|
|
(53) |
|
|
|
|
|
|
|
(267) |
|
|
|
(203) |
|
|
|
|
- To preferred shareholders |
|
|
(11) |
|
|
|
(3) |
|
|
|
(52) |
|
|
|
(44) |
|
|
|
|
- To minority shareholders |
|
|
(55) |
|
|
|
|
|
|
|
(273) |
|
|
|
(96) |
|
|
|
Contribution from
non-controlling interests |
|
|
8 |
|
|
|
|
|
|
|
8 |
|
|
|
|
|
|
Cash Flows (used in) from Financing
Activities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of Continuing Operations |
|
|
(622) |
|
|
|
(398) |
|
|
|
1,172 |
|
|
|
1,142 |
|
|
Effect of foreign currency exchange rate
changes |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
on cash and cash equivalents |
|
|
11 |
|
|
|
12 |
|
|
|
25 |
|
|
|
27 |
|
|
Cash Flows from
(used in) Continuing Operations |
|
|
29 |
|
|
|
1,032 |
|
|
|
(1,536) |
|
|
|
1,232 |
|
|
Cash Flows from
Discontinued Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
48 |
|
|
Change in Cash and
Cash Equivalents |
|
|
29 |
|
|
|
1,032 |
|
|
|
(1,536) |
|
|
|
1,280 |
|
|
Cash and Cash
Equivalents, Beginning of Period |
|
|
1,304 |
|
|
|
1,837 |
|
|
|
2,869 |
|
|
|
1,589 |
|
|
Cash and Cash
Equivalents, End of Period |
|
$ |
1,333 |
|
|
$ |
2,869 |
|
|
$ |
1,333 |
|
|
$ |
2,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted Net Earnings per Common Share from
Continuing Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the periods
ended |
Dec. 31, 2014 |
|
|
Dec. 31,
2013(i) |
|
|
Dec. 31, 2014 |
|
|
Dec.
31, 2013(i) |
|
|
(millions of Canadian
dollars except where otherwise indicated) |
(13 weeks) |
|
|
(12 weeks) |
|
|
(53
weeks) |
|
|
(52
weeks) |
|
|
Net earnings from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
attributable to shareholders of
the Company |
$ |
161 |
|
|
$ |
177 |
|
|
$ |
126 |
|
|
$ |
614 |
|
|
Prescribed dividends on preferred shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in share capital |
|
(10) |
|
|
|
(10) |
|
|
|
(44) |
|
|
|
(44) |
|
|
Net earnings from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
available to common
shareholders |
$ |
151 |
|
|
$ |
167 |
|
|
$ |
82 |
|
|
$ |
570 |
|
|
Reduction in net earnings due to dilution |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
at Loblaw |
|
(1) |
|
|
|
(1) |
|
|
|
|
|
|
|
(4) |
|
|
Net earnings from continuing operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
available to common shareholders for |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
diluted earnings per
share |
$ |
150 |
|
|
$ |
166 |
|
|
$ |
82 |
|
|
$ |
566 |
|
|
Weighted average common shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding (in
millions) |
|
127.7 |
|
|
|
127.7 |
|
|
|
127.8 |
|
|
|
127.6 |
|
|
Dilutive effect of share-based |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compensation(ii) (in millions) |
|
0.5 |
|
|
|
0.3 |
|
|
|
0.4 |
|
|
|
0.2 |
|
|
Diluted weighted average common shares |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding (in millions) |
|
128.2 |
|
|
|
128.0 |
|
|
|
128.2 |
|
|
|
127.8 |
|
|
Basic net earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
from continuing operations ($) |
$ |
1.18 |
|
|
$ |
1.31 |
|
|
$ |
0.64 |
|
|
$ |
4.47 |
|
|
Diluted net earnings per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
from continuing operations ($) |
$ |
1.17 |
|
|
$ |
1.30 |
|
|
$ |
0.64 |
|
|
$ |
4.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) |
Certain 2013 figures have been
amended. See note 2 of the Company's consolidated financial
statements included in the 2014 Annual Report. |
(ii) |
In the fourth quarter of 2014 and
year-to-date, 79,962 (2013 - 513,585) and 501,963 (2013 - 516,557)
potentially dilutive instruments, respectively, were excluded from
the computation of diluted net earnings per common share from
continuing operations as they were anti-dilutive. |
Segment Information
The Company has two reportable operating segments: Weston Foods and Loblaw. The accounting
policies of the reportable operating segments are the same as those
described in the Company's 2014 Annual Report. The Company measures
each reportable operating segment's performance based on adjusted
EBITDA(ii) and adjusted operating income(ii).
Neither reportable operating segment is reliant on any single
external customer.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For
the periods ended |
Dec. 31, 2014 |
|
|
Dec. 31,
2013(i) |
|
|
Dec. 31,
2014 |
|
|
Dec. 31,
2013(i) |
|
|
(millions of Canadian dollars) |
(13
weeks) |
|
|
(12 weeks) |
|
|
(53 weeks) |
|
|
(52 weeks) |
|
|
Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weston Foods |
$ |
469 |
|
|
$ |
413 |
|
|
$ |
1,923 |
|
|
$ |
1,812 |
|
|
|
Loblaw |
|
11,413 |
|
|
|
7,640 |
|
|
|
42,611 |
|
|
|
32,371 |
|
|
|
Intersegment |
|
(148) |
|
|
|
(134) |
|
|
|
(616) |
|
|
|
(601) |
|
|
Consolidated |
|
$ |
11,734 |
|
|
$ |
7,919 |
|
|
$ |
43,918 |
|
|
$ |
33,582 |
|
|
Adjusted
EBITDA(ii) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weston Foods |
$ |
74 |
|
|
$ |
67 |
|
|
$ |
311 |
|
|
$ |
322 |
|
|
|
Loblaw |
|
948 |
|
|
|
487 |
|
|
|
3,228 |
|
|
|
2,098 |
|
|
Total |
$ |
1,022 |
|
|
$ |
554 |
|
|
$ |
3,539 |
|
|
$ |
2,420 |
|
|
Depreciation and
Amortization(iii) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weston Foods |
$ |
17 |
|
|
$ |
15 |
|
|
$ |
70 |
|
|
$ |
63 |
|
|
|
Loblaw |
|
269 |
|
|
|
196 |
|
|
|
1,055 |
|
|
|
824 |
|
|
Total |
$ |
286 |
|
|
$ |
211 |
|
|
$ |
1,125 |
|
|
$ |
887 |
|
|
Adjusted Operating
Income(ii) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weston Foods |
$ |
57 |
|
|
$ |
52 |
|
|
$ |
241 |
|
|
$ |
259 |
|
|
|
Loblaw |
|
679 |
|
|
|
291 |
|
|
|
2,173 |
|
|
|
1,274 |
|
|
|
Impact of certain
items(iv) |
|
(157) |
|
|
|
(9) |
|
|
|
(1,529) |
|
|
|
8 |
|
|
|
Other(v) |
|
43 |
|
|
|
42 |
|
|
|
88 |
|
|
|
75 |
|
|
Consolidated operating
income |
$ |
622 |
|
|
$ |
376 |
|
|
$ |
973 |
|
|
$ |
1,616 |
|
|
Net Interest
Expense and Other Financing Charges |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weston Foods |
$ |
72 |
|
|
$ |
(21) |
|
|
$ |
250 |
|
|
$ |
54 |
|
|
|
Loblaw |
|
169 |
|
|
|
141 |
|
|
|
584 |
|
|
|
458 |
|
|
|
Other(vi) |
|
(4) |
|
|
|
(3) |
|
|
|
(14) |
|
|
|
(6) |
|
|
|
Intersegment(vii) |
|
(6) |
|
|
|
(11) |
|
|
|
(5) |
|
|
|
(9) |
|
|
Consolidated net interest expense and
other financing charges |
$ |
231 |
|
|
$ |
106 |
|
|
$ |
815 |
|
|
$ |
497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i) |
Certain 2013 figures have been
amended. See note 2 of the Company's consolidated financial
statements included in the 2014 Annual Report. |
(ii) |
Excludes certain items and is used
internally by management when analyzing segment underlying
operating performance. |
(iii) |
Excludes $124 million (2013 -
nil) and $417 million (2013 - nil), respectively, of
amortization of intangible assets acquired with Shoppers Drug Mart
recorded by Loblaw in the fourth quarter of 2014 and year-to-date,
and accelerated depreciation $1 million and $4 million,
respectively, incurred in the fourth quarter of 2013 and
year-to-date by Weston Foods, included in restructuring and
other charges. |
(iv) |
The impact of certain items excluded
by management includes restructuring and other charges, the fair
value adjustment of derivatives, fixed asset and other related
impairments at Loblaw net of recoveries, net insurance proceeds
received by Weston Foods, the MEPP settlement payment and
withdrawal liability by Weston Foods, restructuring of franchise
fees at Loblaw, the fair value adjustment of Shoppers Drug Mart's
share-based compensation liability, certain costs relating to
Choice Properties, certain costs and charges and divestiture loss
relating to the acquisition of Shoppers Drug Mart, a charge related
to the change in inventory valuation methodology at Loblaw, and
defined benefit plan amendments. |
(v) |
Represents the effect of foreign
currency translation on a portion of the U.S. dollar denominated
cash and short term investments held by foreign operations. |
(vi) |
Represents the Trust Unit
distributions from Choice Properties to GWL. |
(vii) |
Represents the elimination of the
fair value adjustment of the Trust Unit liability related to GWL's
direct investment in Choice Properties. |
2014 ANNUAL AUDITED CONSOLIDATED FINANCIAL STATEMENTS AND
MANAGEMENT'S DISCUSSION AND ANALYSIS
The Company's annual audited consolidated financial statements and
MD&A for the year ended December 31, 2014 are
available in the Investor Centre section of the Company's website
at www.weston.ca and have been filed with SEDAR and are
available online at www.sedar.com.
INVESTOR RELATIONS
Shareholders, security analysts and investment professionals should
direct their requests to Mr. Geoffrey H. Wilson,
Senior Vice President, Investor Relations, Business Intelligence
and Communications, at the Company's Executive Office or by
e-mail at investor@weston.ca.
Additional financial information has been filed electronically
with the Canadian securities regulatory authorities in Canada through SEDAR. This News Release
includes selected information on Loblaw Companies Limited, a public
company with shares trading on the Toronto Stock Exchange. For
information regarding Loblaw, readers should also refer to the
materials filed by Loblaw with SEDAR from time to time. These
filings are also maintained at Loblaw's corporate website at
www.loblaw.ca.
CONFERENCE CALL AND WEBCAST PRESENTATION
George Weston Limited will host a conference call as well as an
audio webcast on Thursday, March 5,
2015 at 11:00 a.m. (EST). To
access via tele-conference, please dial (647) 427-7450. The
playback will be available two hours after the event at (416)
849-0833, passcode: 66842681#. To access via audio webcast, please
visit the Investor Centre section of www.weston.ca.
Pre-registration will be available.
|
|
|
|
Footnote
Legend |
|
|
(1) |
See non-GAAP financial measures. |
(2) |
This News Release contains
forward-looking information. See Forward-Looking Statements of this
News Release for a discussion of material factors that could cause
actual results to differ materially from the forecasts and
projections herein and of the material factors, estimates, beliefs
and assumptions that were applied in presenting the conclusions,
forecasts and projections presented herein. This News Release must
be read in conjunction with GWL's filings with securities
regulators made from time to time, all of which can be found at
www.weston.ca and www.sedar.com. |
(3) |
Certain 2013 figures have been
amended. See the "Non-GAAP Financial Measures" section of this News
Release and note 2 of the Company's consolidated financial
statements included in the 2014 Annual Report. |
|
|
SOURCE George Weston Limited