TORONTO, March 2, 2021 /CNW/ - George Weston Limited
(TSX: WN) ("GWL" or the "Company") today announced its consolidated
unaudited results for the 13 weeks ended December 31, 2020.
GWL's 2020 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, 2020. The 2020 Annual
Report has been filed on 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 2020 include an extra week of operations
("the 53rd week") compared to 2019.
"George Weston performed well
during the fourth quarter," said Galen G.
Weston, Chairman and Chief Executive Officer, George Weston
Limited. "Our businesses showed resilience in the face of
challenging circumstances as they delivered improved results across
the board. Looking forward, as COVID-19 impacts continue to add
short-term uncertainty, we remain confident in the long-term value
creation opportunities for each of them."
Loblaw Companies Limited ("Loblaw") delivered positive
results with strong same-store and e-commerce sales growth in a
quarter heavily impacted by COVID-19. Costs remained elevated to
ensure the safety and security of customers and colleagues. Loblaw
continued to deliver value in categories that mean the most to its
customers and focused on accelerating its three strategic growth
areas of Everyday Digital Retail, Payments and Rewards, and
Connected Healthcare Network.
Choice Properties Real Estate Investment Trust ("Choice
Properties") generated solid results in the fourth quarter,
reflecting stable earnings as it collected 98% of contractual
rents. This strong performance was underpinned by improvements to
the overall quality of the portfolio through effective capital
recycling. In the fourth quarter, Choice Properties completed
approximately $550 million of
transactions, including four acquisitions and five dispositions,
and remained disciplined in its capital spending on development
initiatives. Choice Properties remains confident that this
deliberate approach to financial and asset management will enable
it to continue to manage the risks and uncertainties associated
with the COVID-19 pandemic and position it for long-term
growth.
Weston Foods' sales and earnings improved in the
fourth quarter compared to the third quarter despite the negative
impact of COVID-19. The reintroduction of government-mandated
closures of non-essential businesses, stay-at-home orders and
mandatory social distancing restrictions in several regions led to
lower volumes, with the negative impact being more significant in
the second half of the quarter. These pressures were offset in part
by the on-going cost savings and productivity improvements and the
benefits realized from Weston Foods' transformation program, as
well as better sales performance in certain retail categories and
foodservice channels. As a result, Weston Foods remains
well-positioned to achieve long-term growth through its strategic
framework while delivering superior products and services to its
customers and consumers.
2020 FOURTH QUARTER HIGHLIGHTS
Net earnings available to common shareholders of the Company
were $289 million ($1.88 per
common share), a decrease of $144
million ($0.93 per common
share) compared to the fourth quarter of 2019. The decrease was due
to the unfavourable year-over-year net impact of adjusting items
totaling $194 million ($1.27 per
common share), which was primarily due to the unfavourable
year-over-year impact of the fair value adjustment of the Trust
Unit liability of $223 million ($1.44 per common share) as a result of the
increase of Choice Properties' unit price in the fourth quarter of
2020, partially offset by an improvement of $50 million
($0.34 per common share) in the
Company's consolidated underlying operating performance.
Adjusted net earnings available to common shareholders of the
Company(1) in the fourth quarter of 2020 were
$312 million ($2.03 per common share), an increase of
$50 million ($0.34 per common share), or 19.1%, compared to
the fourth quarter of 2019. The increase was mainly due to the
improvement in the underlying operating performance of the
Company's operating segments.
CONSOLIDATED RESULTS OF OPERATIONS
Unless otherwise indicated, the Company's results include an
extra week of operations (the "53rd week") in the fourth quarter
and full year 2020 results when compared to 2019 as a result of the
Company's reporting calendar.
The Company's results reflect the impact of COVID-19 and the
year-over-year impact of the fair value adjustment of the Trust
Unit liability as a result of the significant changes in Choice
Properties' unit price, recorded in net interest expense and other
financing charges. The Company's results are impacted by market
price fluctuations of Choice Properties' Trust Units on the basis
that the Trust Units held by unitholders, other than the Company,
are redeemable for cash at the option of the holder and are
presented as a liability on the Company's consolidated balance
sheet. The Company's financial results are negatively impacted when
the Trust Unit price rises and positively impacted when the Trust
Unit price declines.
(unaudited)
|
|
Quarters
Ended
|
|
|
|
Years
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($ millions except
where otherwise
indicated)
|
|
Dec. 31,
2020
|
|
Dec. 31,
2019
|
|
|
|
Dec. 31,
2020
|
|
Dec. 31,
2019
|
|
|
For the periods ended
as indicated
|
|
(13
weeks)
|
|
(12 weeks)
|
$ Change
|
% Change
|
|
(53
weeks)
|
|
(52 weeks)
|
$ Change
|
% Change
|
Revenue
|
|
$
|
13,806
|
|
$
|
12,107
|
$
|
1,699
|
14.0%
|
|
$
|
54,705
|
|
$
|
50,109
|
$
|
4,596
|
9.2%
|
Operating
income
|
|
$
|
906
|
|
$
|
718
|
$
|
188
|
26.2%
|
|
$
|
2,888
|
|
$
|
2,958
|
$
|
(70)
|
(2.4)%
|
Adjusted
EBITDA(1)
|
|
$
|
1,501
|
|
$
|
1,351
|
$
|
150
|
11.1%
|
|
$
|
5,607
|
|
$
|
5,483
|
$
|
124
|
2.3%
|
Adjusted EBITDA
margin(1)
|
|
|
10.9%
|
|
|
11.2%
|
|
|
|
|
10.2%
|
|
|
10.9%
|
|
|
|
Net earnings
attributable to
shareholders
of the Company
|
|
$
|
299
|
|
$
|
443
|
$
|
(144)
|
(32.5)%
|
|
$
|
963
|
|
$
|
242
|
$
|
721
|
297.9%
|
Net earnings
available to
common shareholders
of the Company
|
|
$
|
289
|
|
$
|
433
|
$
|
(144)
|
(33.3)%
|
|
$
|
919
|
|
$
|
198
|
$
|
721
|
364.1%
|
Adjusted net
earnings
available to common
shareholders
of the Company(1)
|
|
$
|
312
|
|
$
|
262
|
$
|
50
|
19.1%
|
|
$
|
1,055
|
|
$
|
1,117
|
$
|
(62)
|
(5.6)%
|
Diluted net
earnings per
common share ($)
|
|
$
|
1.88
|
|
$
|
2.81
|
$
|
(0.93)
|
(33.1)%
|
|
$
|
5.96
|
|
$
|
1.26
|
$
|
4.70
|
373.0%
|
Adjusted diluted
net
earnings per
common share(1) ($)
|
|
$
|
2.03
|
|
$
|
1.69
|
$
|
0.34
|
20.1%
|
|
$
|
6.85
|
|
$
|
7.24
|
$
|
(0.39)
|
(5.4)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table provides the approximate impact of the
53rd week on the consolidated results of the Company in the fourth
quarter of 2020:
|
|
|
|
|
|
53rd week
2020
|
($ millions except
where otherwise indicated)
|
Loblaw
|
Weston
Foods
|
Other and Intersegment
|
Total
|
Revenue
|
$
|
878
|
$
|
29
|
$
|
(10)
|
$
|
897
|
Adjusted
EBITDA(1)
|
$
|
67
|
$
|
4
|
$
|
—
|
$
|
71
|
Adjusted EBITDA
margin(1)
|
7.6%
|
|
13.8%
|
|
|
|
Depreciation and
amortization
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
Operating
income
|
$
|
67
|
$
|
4
|
$
|
—
|
$
|
71
|
Net earnings
available to common shareholders of
the Company
|
$
|
18
|
$
|
3
|
$
|
—
|
$
|
21
|
Diluted net earnings
per common share ($)
|
$
|
0.12
|
$
|
0.02
|
$
|
—
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
In the fourth quarter of 2020, the Company recorded net earnings
available to common shareholders of the Company of
$289 million ($1.88 per common
share), a decrease of $144 million
($0.93 per common share) compared to
the fourth quarter of 2019. The decrease was due to the
unfavourable year-over-year net impact of adjusting items totaling
$194 million ($1.27 per common
share), partially offset by an improvement of $50 million
($0.34 per common share) in the
Company's consolidated underlying operating performance, as set out
below:
- The unfavourable year-over-year net impact of adjusting items
totaling $194 million ($1.27 per common share) was due to:
-
- the unfavourable year-over-year impact of the fair value
adjustment of the Trust Unit liability of $223 million ($1.44
per common share) as a result of the increase in Choice Properties'
unit price in the fourth quarter of 2020; and
- the unfavourable year-over-year impact of asset impairments,
net of recoveries of $9 million
($0.08 per common share);
partially offset by,
- the favourable year-over-year impact of the fair value
adjustment on investment properties of $38
million ($0.25 per common
share).
- The improvement in the Company's consolidated underlying
operating performance of $50 million
($0.34 per common share) was due
to:
-
- the favourable underlying operating performance of Loblaw
including the impact of COVID-19 and related costs;
- the favourable underlying operating performance of Weston Foods
including the impact of COVID-19 and related costs; and
- the decrease in the adjusted effective tax rate(1)
mainly due to the favourable impact of the non-taxable portion of
the gain from the Choice Properties' transactions completed in the
fourth quarter of 2020 and the year-over-year impact of certain
non-deductible tax items;
partially offset by,
- an increase in adjusted net interest expense and other
financing charges(1); and
- an increase in depreciation and amortization.
Adjusted net earnings available to common shareholders of the
Company(1) in the fourth quarter of 2020 were
$312 million ($2.03 per common
share), an increase of $50 million ($0.34 per common share), or 19.1%, compared to
the fourth quarter of 2019 due to the improvement in the Company's
consolidated underlying operating performance described above.
Excluding the impact of the 53rd week of $21 million
($0.14 per common share), adjusted
net earnings available to common shareholders of the
Company(1) increased by $29 million ($0.20 per common share), or 11.1%, compared to
the same period in 2019.
CONSOLIDATED OTHER BUSINESS MATTERS
COVID-19 RELATED COSTS In 2020, the
Company incurred significant COVID-19 costs related to temporary
pay premiums, pay protection safeguards, additional security,
customer convenience and increased health and safety measures,
totaling approximately $490 million.
The Company incurred COVID-19 related costs of approximately
$50 million in the fourth quarter of 2020 primarily related to
safety and security measures to protect colleagues, customers,
tenants and other stakeholders. The estimated COVID-19 related
costs incurred by each of the Company's reportable operating
segments were as follows:
|
Quarter
Ended
|
|
Year Ended
|
|
|
|
|
(unaudited)
|
Dec. 31,
2020
|
|
Dec. 31,
2020
|
($
millions)
|
(13
weeks)
|
|
(53 weeks)
|
Loblaw
|
$
|
45
|
|
$
|
445
|
Choice
Properties(i)
|
|
3
|
|
21
|
Weston
Foods
|
|
2
|
|
24
|
Consolidated
|
$
|
50
|
|
$
|
490
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Choice Properties
recorded a provision of $3 million and $21 million in the fourth
quarter and year-to-date of 2020, respectively, for certain past
due amounts, reflecting increased collectability risk and
potential abatements.
|
CONSOLIDATION IMPACTS OF CHOICE PROPERTIES'
TRANSACTIONS Choice Properties completed various
property acquisitions and dispositions in 2019 and 2020, improving
the strength of its portfolio. As a result of certain of these
transactions, the Company recorded the consolidation impact in
Other and Intersegment.
|
|
|
|
|
|
|
|
|
Quarters
Ended
|
|
Years
Ended
|
|
|
|
|
|
|
|
|
(unaudited)
|
Dec. 31,
2020
|
|
Dec. 31,
2019
|
|
Dec. 31,
2020
|
|
Dec. 31,
2019
|
($
millions)
|
(13
weeks)
|
(12 weeks)
|
|
(53
weeks)
|
|
(52 weeks)
|
Choice Properties'
transactions
|
$
|
11
|
|
$
|
7
|
|
$
|
31
|
|
$
|
7
|
Net interest expense
and other financing charges
|
$
|
11
|
|
$
|
7
|
|
$
|
31
|
|
$
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
CHOICE PROPERTIES' TRANSACTIONS In
2020, Choice Properties disposed or partially disposed of 17
properties (2019 – 31 properties) to third parties for aggregate
consideration of $233 million (2019 – $435 million). On consolidation, these
transactions were not recognized as a sale of assets as under the
terms of the leases, the Company did not relinquish control of the
properties for purposes of IFRS 16 "Leases" and IFRS 15 "Revenue
from Contracts with Customers". The proceeds from the
transactions were recognized as financial liabilities totaling
$233 million (2019 – $435 million) on the Company's consolidated
balance sheets. As at December 31,
2020, the Company recognized $666
million (2019 – $435 million)
in financial liabilities. The corresponding interest expense of
$11 million in the fourth quarter of
2020 (2019 – $7 million) and
$31 million year-to-date (2019 –
$7 million) was recorded in the
consolidated statements of earnings.
For tax purposes, these transactions were treated as a sale, and
the income tax expense reflects the benefit from the non-taxable
portion of the gain from the sale of properties by Choice
Properties.
REPORTABLE OPERATING SEGMENTS
The Company operates through its three reportable operating
segments, Loblaw, Choice Properties and Weston Foods. Other and
Intersegment includes eliminations, intersegment adjustments
related to the consolidation and cash and short-term investments
held by the Company. All other company level activities that are
not allocated to the reportable operating segments, such as
interest expense, corporate activities and administrative costs are
included in Other and Intersegment.
Loblaw has two reportable operating segments, retail and
financial services. Loblaw's retail segment consists primarily of
food retail and drug retail. Loblaw provides Canadians with
grocery, pharmacy, health and beauty, apparel, general merchandise
and financial services.
Choice Properties owns, manages and develops a high-quality
portfolio of commercial retail, industrial, office and residential
properties across Canada.
Weston Foods is a North American bakery making bread,
rolls, cupcakes, donuts, cookies, cakes, pies, cones and wafers,
artisan baked goods and more.
The Company's results in 2020 include an extra week of
operation, the 53rd week, as described in the "Consolidated Results
of Operations" section of this News Release.
Loblaw Operating Results
|
Quarters
Ended
|
|
|
|
Years
Ended
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
($ millions except
where
otherwise
indicated)
|
Dec. 31,
2020
|
Dec. 31,
2019
|
|
|
|
Dec. 31,
2020
|
Dec. 31,
2019
|
|
|
|
For the periods ended
as indicated
|
(13
weeks)
|
(12 weeks)
|
$ Change
|
% Change
|
(53
weeks)
|
(52 weeks)
|
$ Change
|
% Change
|
Revenue
|
$
|
13,286
|
$
|
11,590
|
$
|
1,696
|
14.6%
|
$
|
52,714
|
$
|
48,037
|
$
|
4,677
|
9.7%
|
Operating
income
|
$
|
700
|
$
|
539
|
$
|
161
|
29.9%
|
$
|
2,357
|
$
|
2,262
|
$
|
95
|
4.2%
|
Adjusted
EBITDA(1)
|
$
|
1,330
|
$
|
1,203
|
$
|
127
|
10.6%
|
$
|
5,033
|
$
|
4,904
|
$
|
129
|
2.6%
|
Adjusted EBITDA
margin(1)
|
10.0%
|
10.4%
|
|
|
9.6%
|
10.2%
|
|
|
|
Depreciation
and
amortization(i)
|
$
|
609
|
$
|
589
|
$
|
20
|
3.4%
|
$
|
2,596
|
$
|
2,524
|
$
|
72
|
2.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Depreciation and
amortization in the fourth quarter of 2020 includes
$117 million (2019 – $116 million) and $509 million
(2019 – $508 million) year-to-date of amortization of
intangible assets acquired with Shoppers Drug Mart Corporation
("Shoppers Drug Mart").
|
Revenue Loblaw revenue in the fourth quarter of
2020 was $13,286 million, an
increase of $1,696 million, or
14.6%, compared to the fourth quarter of 2019. The increase
was primarily driven by retail sales, partially offset by a
decrease in financial services revenue.
Retail sales increased by $1,722 million, or 15.2%, compared to the
fourth quarter of 2019, which included the impact of the 53rd
week of $878 million. Food retail
sales were $9,302 million (2019
– $7,960 million) and drug
retail sales were $3,741 million
(2019 – $3,361 million).
Excluding the consolidation of franchises, retail sales
increased by $1,601 million, or
14.6%, which included the impact of the 53rd week of
$845 million, primarily driven by the following factors:
- food retail same-store sales growth was 8.6% for the quarter.
Food retail same-store sales growth was positively impacted by
COVID-19. On a comparable week basis food retail basket size
increased and traffic decreased in the quarter;
- Loblaw's food retail average article price was higher by 3.9%
(2019 – 0.8%), which reflects the year-over-year growth in food
retail revenue over the average number of articles sold in Loblaw's
stores in the quarter. The increase in average article price was
due to sales mix; and
- drug retail same-store sales growth was 3.7% for the quarter.
Pharmacy same-store sales growth was 5.0% and front store
same-store sales growth was 2.8%.
In 2020, 19 food and drug stores were opened and 9 food and drug
stores were closed, resulting in a net increase in retail
square footage of 0.2 million square feet, or 0.3%.
Financial services revenue in the fourth quarter of 2020
decreased by $17 million compared to the fourth quarter of
2019 mainly due to lower interest income from lower volume of
credit card receivables, and lower credit card related fees
primarily driven by lower customer spending. The decrease was
partially offset by higher sales attributable to The Mobile
Shop, and higher interchange income due to prior year
impact of a reclassification between revenue and expense of
$19 million with no impact to
earnings before income tax.
Operating income Loblaw operating income in the
fourth quarter of 2020 was $700 million, an increase of
$161 million when compared to the fourth quarter of 2019,
which included the impact of the 53rd week of $67 million. The
increase included an improvement in underlying operating
performance of $108 million and the favourable year-over-year
net impact of adjusting items totaling $53 million, as
described below:
- the improvement in underlying operating performance of
$108 million was primarily due to an
improvement in retail which included the favourable contribution
from the consolidation of franchises of $34
million. The improvement in the underlying operating
performance of retail was positively impacted by the 53rd week.
This was partially offset by the performance from financial
services. In the fourth quarter of 2020, Loblaw incurred
approximately $45 million in COVID-19
related costs in the quarter to ensure the safety and security of
customers and colleagues.
- the favourable year-over-year net impact of adjusting items
totaling $53 million was primarily
due to the following:
-
- the favourable year-over-year change in asset impairments, net
of recoveries of $58 million;
and
- the favourable year-over-year impact of restructuring and other
related costs of $14 million;
partially offset by,
- the unfavourable year-over-year impact of Loblaw's fair value
adjustment on non-operating properties of $13 million; and
- the unfavourable impact of reversal of certain prior period
items in 2019 of $7 million.
Adjusted EBITDA(1) Loblaw adjusted
EBITDA(1) in the fourth quarter of 2020 was
$1,330 million. When compared to
the fourth quarter of 2019, this represented an increase of
$127 million, or 10.6%, which included the impact of the 53rd
week of $67 million. The increase was primarily due to the
improved underlying operating performance in retail, partially
offset by the decline in financial services.
Retail adjusted EBITDA(1) in the fourth
quarter of 2020 increased by $135 million, including the
favourable impact of the consolidation of franchises of
$37 million and was driven by an increase in retail gross
profit, partially offset by an increase in retail selling, general
and administrative expenses ("SG&A").
- Retail gross profit percentage of 29.4% decreased by 40 basis
points compared to the fourth quarter of 2019. Excluding the
consolidation of franchises, retail gross profit percentage was
26.9%, a decrease of 80 basis points compared to the fourth quarter
of 2019. Food retail margins were negatively impacted as a result
of COVID-19 related changes in sales mix and competitive pricing.
Drug retail margins were negatively impacted as a result of
COVID-19 related changes in front store sales mix. Excluding the
53rd week, retail gross profit percentage decreased by 70 basis
points.
- Excluding the consolidation of franchises, retail SG&A
increased by $251 million and
SG&A as a percentage of sales was 17.4%, a decrease of 20 basis
points compared to the fourth quarter of 2019. The favourable
decrease of 20 basis points was primarily related to sales leverage
as well as process and efficiency gains, which were partially
offset by COVID-19 related costs and incremental e-commerce labour
costs as a result of increased online sales.
Financial services adjusted EBITDA(1) decreased by
$8 million compared to the fourth quarter of 2019, primarily
driven by lower revenue as described above, partially offset by
lower credit losses from the decrease in expected credit losses
from an improving economic outlook and lower contractual
charge-off, and lower customer acquisitions costs.
Loblaw adjusted EBITDA(1) was not impacted by any
sale and leaseback of properties to Choice Properties in the fourth
quarter of 2019 and 2020.
Depreciation and Amortization Loblaw's depreciation
and amortization in the fourth quarter of 2020 was
$609 million, an increase of $20 million compared to the
fourth quarter of 2019. The increase in depreciation and
amortization in the fourth quarter of 2020 was primarily driven by
the consolidation of franchises and an increase in Information
Technology ("IT") assets.
Depreciation and amortization in the fourth quarter of 2020
included $117 million (2019 – $116 million) of
amortization of intangible assets related to the acquisition of
Shoppers Drug Mart.
Loblaw Other Business Matters
Process and Efficiency In the fourth quarter
of 2020 and year-to-date, Loblaw recorded approximately
$10 million and $58 million, respectively, of
restructuring and other related costs, primarily related to Process
and Efficiency initiatives. Included in the restructuring charges
were approximately $10 million and
$40 million in the fourth quarter of
2020 and year-to-date, respectively, related to the closure of the
two distribution centres in Laval
and Ottawa. Loblaw is investing to
build a modern and efficient expansion to its Cornwall distribution centre to serve its food
and drug retail businesses in Ontario and Quebec. The distribution centres in
Laval and Ottawa will be transferring their volumes to
Cornwall. Loblaw expects to incur
additional restructuring costs through to 2022 related to these
closures.
Consolidation of Franchises Loblaw has more
than 500 franchise food retail stores in its network. As at the end
of the first quarter of 2020, Loblaw consolidated all of its
remaining franchisees for accounting purposes under a simplified
franchise agreement implemented in 2015 ("Franchise
Agreement").
Consolidation of franchises in the fourth quarter of 2020
resulted in a year-over-year increase in revenue of
$121 million, an increase in adjusted
EBITDA(1) of $37 million, an increase in
depreciation and amortization of $3 million and an increase in
net earnings attributable to non-controlling interests of
$37 million.
Choice Properties Operating Results
(unaudited)
($ millions except
where otherwise
indicated)
For the periods ended
as indicated
|
|
Quarters
Ended
|
|
|
|
Years
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
2020
|
|
Dec. 31,
2019
|
|
$ Change
|
% Change
|
|
Dec. 31,
2020
|
|
Dec. 31,
2019
|
|
$ Change
|
% Change
|
|
(12
weeks)
|
|
(12 weeks)
|
|
(52
weeks)
|
|
(52 weeks)
|
Revenue
|
|
$
|
322
|
|
$
|
318
|
$
|
4
|
1.3%
|
|
$
|
1,271
|
|
$
|
1,289
|
$
|
(18)
|
(1.4)%
|
Net interest expense
(income)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other
financing
charges(i)
|
|
$
|
217
|
|
$
|
(74)
|
$
|
291
|
393.2%
|
|
$
|
173
|
|
$
|
1,472
|
$
|
(1,299)
|
(88.2)%
|
Net income
(loss)
|
|
$
|
117
|
|
$
|
294
|
$
|
(177)
|
(60.2)%
|
|
$
|
451
|
|
$
|
(581)
|
$
|
1,032
|
177.6%
|
Funds from
Operations(1)(ii)
|
|
$
|
172
|
|
$
|
166
|
$
|
6
|
3.6%
|
|
$
|
652
|
|
$
|
680
|
$
|
(28)
|
(4.1)%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Net interest expense
(income) and other financing charges includes a fair value
adjustment on Exchangeable Units.
|
(ii)
|
Funds from operations
is calculated in accordance with the Real Property Association of
Canada's White Paper on Funds from Operations & Adjusted
Funds from Operations for IFRS issued in February 2019.
|
Revenue Revenue in the fourth quarter of
2020 was $322 million, an increase of
$4 million, or 1.3%, compared to the fourth quarter of 2019,
and included $180 million (2019 –
$178 million) generated from tenants
within Loblaw retail. The increase in revenue was primarily driven
by development transfers and acquisitions, partially offset by the
foregone revenue from sold properties.
Net Interest Expense and Other Financing Charges
Net interest expense and other financing charges in the fourth
quarter of 2020 were $217 million
compared to net interest income and other financing charges of
$74 million in the fourth quarter of 2019. The change of
$291 million was primarily driven by
the unfavourable year-over-year impact of the fair value adjustment
on Class B LP units ("Exchangeable Units") of
$294 million.
Net Income Net income in the fourth quarter of 2020
was $117 million, compared to
$294 million in the fourth quarter of
2019. The decrease of $177 million was primarily driven
by:
- the unfavourable impact of higher net interest expense and
other financing charges described above; and
- an increase in expected credit loss provisions related to
tenant receivables;
partially offset
by,
- the favourable year-over-year impact of the fair value
adjustment on investment properties.
Funds from
Operations(1)
Funds from Operations(1) in the fourth
quarter of 2020 was $172 million, an
increase of $6 million compared to
the fourth quarter of 2019, primarily driven by non-recurring
activity in the prior year related to a reimbursement to Loblaw and
lower borrowing and general and administrative costs, partially
offset by an increase in expected credit loss provisions related to
tenant receivables.
Choice Properties Other Business Matters
Investment Property Transactions
Subsequent to the end of 2020, Choice Properties completed the
disposition of its 50% equity accounted joint venture interest in
land held for development for aggregate proceeds of $66 million, net of transaction and estimated
closing costs.
Weston Foods Operating Results
|
Quarters
Ended
|
|
|
|
Years
Ended
|
|
|
|
(unaudited)
($ millions except
where otherwise
indicated)
For the periods ended
as indicated
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
2020
|
Dec. 31,
2019
|
$ Change
|
% Change
|
Dec. 31,
2020
|
Dec. 31,
2019
|
$ Change
|
% Change
|
(13
weeks)
|
(12 weeks)
|
(53
weeks)
|
(52 weeks)
|
Sales
|
$
|
523
|
$
|
522
|
$
|
1
|
0.2%
|
$
|
2,062
|
$
|
2,155
|
$
|
(93)
|
(4.3)%
|
Operating
income
|
$
|
35
|
$
|
27
|
$
|
8
|
29.6%
|
$
|
3
|
$
|
72
|
$
|
(69)
|
(95.8)%
|
Adjusted
EBITDA(1)
|
$
|
79
|
$
|
56
|
$
|
23
|
41.1%
|
$
|
200
|
$
|
223
|
$
|
(23)
|
(10.3)%
|
Adjusted EBITDA
margin(1)
|
|
15.1%
|
|
10.7%
|
|
|
|
|
9.7%
|
|
10.3%
|
|
|
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization(i)
|
$
|
41
|
$
|
36
|
$
|
5
|
13.9%
|
$
|
175
|
$
|
147
|
$
|
28
|
19.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Depreciation and
amortization in the fourth quarter of 2020 includes $8 million
(2019 – $3 million) and $30 million (2019 –
$9 million) year-to-date of accelerated depreciation related
to restructuring and other related costs.
|
Sales Weston Foods sales in the fourth quarter of
2020 were $523 million, an increase of $1 million, or
0.2%, compared to the fourth quarter of 2019. Sales included the
positive impact of the 53rd week of approximately 5.6%, and the
negative impact of foreign exchange of approximately 0.8%.
Excluding the favourable impact of the 53rd week and the negative
impact of foreign currency translation, sales decreased by 4.6%.
Sales were impacted by a decrease in volumes in certain retail
categories and foodservice channels as a result of the COVID-19
pandemic, the unfavourable impact of product rationalization and
the combined negative impact of pricing and changes in sales
mix.
Operating Income Weston Foods operating income in
the fourth quarter of 2020 was $35 million, an increase of
$8 million compared to $27
million in the fourth quarter of 2019, which included the
positive impact of the 53rd week of $4
million. The increase was due to the improvement in
underlying operating performance of $23
million and the unfavourable year-over-year net impact of
adjusting items totaling $15 million. The year-over-year net
impact of adjusting items included the following:
- the unfavourable year-over-year impact of restructuring and
other related costs of $17 million;
and
- the unfavourable year-over-year impact of the fair value
adjustment of derivatives of $2
million;
partially offset
by,
- the favourable year-over-year impact of inventory losses, net
of recoveries, of $4 million.
Adjusted EBITDA(1) Weston Foods adjusted
EBITDA(1) in the fourth quarter of 2020 was
$79 million, an increase of $23 million, or 41.1%,
compared to the fourth quarter of 2019. Excluding the favourable
impact of the 53rd week of $4
million, adjusted EBITDA(1) increased by
$19 million, or 33.9%. The increase was driven by the net
benefits realized from Weston Foods' transformation program,
productivity improvements, cost savings initiatives, and a decrease
in performance related compensation accruals, partially offset by
the decline in sales as described above and an increase in COVID-19
related expenses.
Weston Foods adjusted EBITDA margin(1) in the fourth
quarter of 2020 increased to 15.1% compared to 10.7% in the
fourth quarter of 2019. The improvement in adjusted EBITDA
margin(1) in the fourth quarter of 2020 was driven by
the factors described above.
Depreciation and Amortization Weston
Foods depreciation and amortization in the fourth quarter of 2020
was $41 million, an increase of $5 million compared to
the fourth quarter of 2019. Depreciation and amortization in the
fourth quarter of 2020 included $8 million (2019 –
$3 million) of accelerated depreciation related to Weston
Foods' transformation program. Excluding this amount, depreciation
and amortization was flat compared to the fourth
quarter of 2019.
Weston Foods Other Business Matters
Restructuring and other related
costs Weston Foods continuously evaluates
strategic and cost reduction initiatives related to its
manufacturing assets, distribution networks and administrative
infrastructure with the objective of ensuring a low cost
operating structure. In the fourth quarter of 2020 and
year-to-date, Weston Foods recorded restructuring and other related
costs of $13 million (2019 – $4 million) and
$50 million (2019 – $11 million), respectively, which
were primarily related to Weston Foods' transformation program.
Transaction between Weston Foods and Choice
Properties In the fourth quarter of 2020, Weston
Foods disposed of a portfolio of six industrial properties to
Choice Properties at an aggregate price of $79 million, excluding transaction costs, which
was satisfied in full through the issuance of 5,824,742 Class B LP
Units of Choice Properties Limited Partnership. These properties
were leased back by Weston Foods.
OUTLOOK(2)
For 2021, the Company expects adjusted net
earnings(1) to increase due to the results from its
operating segments as described below. Additionally, the Company
expects to return capital to shareholders through share repurchases
by allocating a portion of the free cash flow received from its
operating businesses and proceeds from participating in Loblaw's
normal course issuer bid.
Loblaw Loblaw cannot predict the precise impacts of
COVID-19 on its 2021 financial results. However, Loblaw anticipates
that grocery sales will remain elevated in the first half due to
continued impact of the pandemic, including the impact of lockdown
measures in many jurisdictions. As economies reopen, revenue growth
will be challenged compared to elevated 2020 sales. Loblaw expects
that in 2021 costs will be lower compared to those incurred in 2020
as a result of COVID-19, and as Process & Efficiencies and
Data-Driven Insights programs continue to deliver benefits.
Moderate levels of regulatory drug reform are anticipated.
Loblaw expects:
- its core retail business to grow earnings faster than
sales;
- growth in financial services profitability;
- EPS growth in the low double digits;
- to invest approximately $1.2
billion in capital expenditures, net of proceeds from
property disposals; and
- to return capital to shareholders by allocating a significant
portion of free cash flow to share repurchases.
In the four weeks following the end of the quarter, Loblaw's
food same-store sales growth remained elevated and drug same-store
sales growth slowed in front store while remaining consistent in
pharmacy. For the balance of the first quarter, both food and drug
same-store sales will lap consumer stockpiling that began in the
first quarter of 2020. COVID-19 related costs are trending in the
range of $40 to $50 million for the first quarter of
2021.
Choice Properties Choice Properties' real estate
platform is positioned to deliver both income stability and
long-term growth for its investors, underpinned by disciplined
financial management.
Although the duration and longer-term impact of the COVID-19
pandemic cannot be predicted, Choice Properties remains confident
that its business model and disciplined approach to financial
management will enable it to weather the impact of COVID-19. Choice
Properties' diversified portfolio of office, retail and industrial
properties is 97.1% occupied and leased to high-quality tenants
across Canada. Its retail
portfolio is primarily leased to grocery stores, pharmacies and
other necessity-based tenants, which continue to perform well in
this environment, and the diversification of income provided by
Choice Properties' industrial and office assets provides stability
to Choice Properties' overall portfolio.
Despite the ongoing impact of the pandemic, Choice Properties
continues to advance its development initiatives, which provide
Choice Properties with the best opportunity to add high-quality
real estate to its portfolio at a reasonable cost. Choice
Properties has a mix of development projects ranging in size,
scale, and complexity, including retail intensification projects,
which provide incremental growth to its existing sites, to larger,
more complex mixed-use developments which are expected to drive net
asset value growth in the future.
The majority of Choice Properties' active development pipeline
is focused on growing its rental residential portfolio. In addition
to ongoing residential development, Choice Properties continues to
evaluate opportunities within its portfolio to redevelop and
transform grocery anchored retail projects into large scale major
mixed-use projects.
In 2021, Choice Properties plans to continue improving its
portfolio quality and seek out opportunities to strengthen its
balance sheet by extending debt maturities with longer term
debt.
Weston Foods Weston Foods expects first
quarter 2021 financial results to be challenged relative to the
strong financial performance in the fourth quarter of 2020 due to
the impact of ongoing government-mandated lockdowns and social
distancing protocols in both Canada and United
States associated with the COVID-19 pandemic. In the four
weeks following the end of the fourth quarter of 2020, the weekly
run rate for incremental COVID-19 related costs incurred to protect
its colleagues was approximately $0.3
million.
The uncertainty associated with the pandemic makes it difficult
to reliably estimate future sales trends and the overall financial
performance of the business. Weston Foods' expectations for full
year 2021 assume that stricter government-mandated lockdowns
implemented in many regions in the fourth quarter of 2020 will be
relaxed by the end of the first quarter of 2021. On that basis,
Weston Foods expects:
- sales to be modestly higher compared to 2020, after excluding
the impact of foreign currency translation and the impact of the
53rd week in fiscal 2020;
- adjusted EBITDA(1) to be higher compared to
2020;
- capital expenditures to decrease to approximately $145 million; and
- depreciation to increase in the mid-single digits compared to
2020.
DECLARATION OF QUARTERLY DIVIDENDS
Subsequent to the end of the fourth quarter of 2020, 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
|
$0.550 per share
payable April 1, 2021, to shareholders of
record as of March 15, 2021;
|
|
|
Preferred Shares,
Series I
|
$0.3625 per share
payable March 15, 2021, to shareholders
of record as of February 28, 2021;
|
|
|
Preferred Shares,
Series III
|
$0.3250 per share
payable April 1, 2021, to shareholders of
record as of March 15, 2021;
|
|
|
Preferred Shares,
Series IV
|
$0.3250 per share
payable April 1, 2021, to shareholders of
record as of March 15, 2021; and
|
|
|
Preferred Shares,
Series V
|
$0.296875 per share
payable April 1, 2021, to shareholders of
record as of March 15, 2021.
|
NON-GAAP FINANCIAL MEASURES
The Company uses non-GAAP financial measures as it believes
these measures provide useful information to both management and
investors with regard to accurately assessing the Company's
financial performance and financial condition.
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 underlying consolidated and
segment operating performance, as the excluded items are not
necessarily reflective of the Company's underlying operating
performance and make comparisons of underlying financial
performance between periods difficult. The Company excludes
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.
These measures do not have a standardized meaning prescribed by
GAAP and therefore they may not be comparable to similarly titled
measures presented by other publicly traded companies, and should
not be construed as an alternative to other financial measures
determined in accordance with GAAP.
During 2020, Management undertook a review of adjusting items in
non-GAAP financial measures, and revised the Company's non-GAAP
financial measures policy. The changes in non-GAAP financial
measures policy will be effective beginning January 1, 2021. See section "Non-GAAP Accounting
Policy Change Commencing Fiscal 2021" of this News Release for
further details.
For reconciliation to, and description of the Company's non-GAAP
financial measures and financial metrics, see Section 14, "Non-GAAP
Financial Measures", of the MD&A in the Company's 2020 Annual
Report.
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, opportunities and legal and regulatory
matters. 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, strategic
initiatives and restructuring, regulatory changes including further
healthcare reform, future liquidity, planned capital investments,
and the status and impact of IT systems implementations. These
specific forward-looking statements are contained throughout this
News Release including, without limitation, in 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", "should" and similar
expressions, as they relate to the Company and its management.
Forward-looking statements reflect the Company's 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 2021 is based on certain assumptions,
including assumptions about the COVID-19 pandemic, healthcare
reform impacts, anticipated cost savings and operating efficiencies
and anticipated benefits from strategic initiatives. The Company's
estimates, beliefs and assumptions are inherently subject to
significant business, economic, competitive and other uncertainties
and contingencies regarding future events, including the COVID-19
pandemic 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 "Enterprise Risks and Risk Management" section, of the
MD&A in the Company's 2020 Annual Report and the Company's
Annual Information Form for the year ended December 31, 2020 as well as COVID-19 related
risks that have been added to Section 8, "Enterprise Risks and Risk
Management", of the MD&A in the Company's 2020 Annual
Report.
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.
SELECTED FINANCIAL INFORMATION
The following includes selected quarterly financial information
which is prepared by management in accordance with IFRS and is
based on the Company's audited annual consolidated financial
statements for the year ended December 31,
2020. 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 2020
Annual Report available in the Investor Centre section of the
Company's website at www.weston.ca.
Consolidated Statements of Earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
2020
|
|
|
Dec. 31,
2019
|
|
|
Dec. 31,
2020
|
|
|
Dec. 31,
2019
|
(millions of Canadian
dollars except where otherwise indicated)
|
|
|
(13
weeks)
|
|
|
(12 weeks)
|
|
|
(53
weeks)
|
|
|
(52 weeks)
|
For the periods ended
as indicated
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(audited)
|
|
|
(audited)
|
Revenue
|
|
$
|
13,806
|
|
$
|
12,107
|
|
$
|
54,705
|
|
$
|
50,109
|
Operating
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of inventories
sold
|
|
|
9,493
|
|
|
8,229
|
|
|
37,583
|
|
|
34,166
|
Selling, general and
administrative expenses
|
|
|
3,407
|
|
|
3,160
|
|
|
14,234
|
|
|
12,985
|
|
|
|
12,900
|
|
|
11,389
|
|
|
51,817
|
|
|
47,151
|
Operating
Income
|
|
|
906
|
|
|
718
|
|
|
2,888
|
|
|
2,958
|
Net Interest Expense
and Other Financing Charges
|
|
|
245
|
|
|
7
|
|
|
831
|
|
|
1,704
|
Earnings Before
Income Taxes
|
|
|
661
|
|
|
711
|
|
|
2,057
|
|
|
1,254
|
Income Taxes
|
|
|
148
|
|
|
133
|
|
|
475
|
|
|
431
|
Net
Earnings
|
|
|
513
|
|
|
578
|
|
|
1,582
|
|
|
823
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders of the
Company
|
|
|
299
|
|
|
443
|
|
|
963
|
|
|
242
|
Non-Controlling
Interests
|
|
|
214
|
|
|
135
|
|
|
619
|
|
|
581
|
Net
Earnings
|
|
$
|
513
|
|
$
|
578
|
|
$
|
1,582
|
|
$
|
823
|
Net Earnings per
Common Share ($)
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.89
|
|
$
|
2.82
|
|
$
|
5.99
|
|
$
|
1.29
|
Diluted
|
|
$
|
1.88
|
|
$
|
2.81
|
|
$
|
5.96
|
|
$
|
1.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheets
As at December
31
|
|
|
|
|
(millions of Canadian
dollars)
|
|
2020
|
|
2019(i)
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
Cash and cash
equivalents
|
$
|
2,581
|
$
|
1,834
|
Short-term
investments
|
|
575
|
|
229
|
Accounts
receivable
|
|
1,192
|
|
1,295
|
Credit card
receivables
|
|
3,109
|
|
3,518
|
Inventories
|
|
5,385
|
|
5,270
|
Prepaid expenses and
other assets
|
|
304
|
|
336
|
Assets held for
sale
|
|
108
|
|
203
|
Total Current
Assets
|
|
13,254
|
|
12,685
|
Fixed
Assets
|
|
11,943
|
|
11,773
|
Right-of-Use
Assets
|
|
4,043
|
|
4,074
|
Investment
Properties
|
|
4,930
|
|
4,888
|
Equity Accounted
Joint Ventures
|
|
573
|
|
605
|
Intangible
Assets
|
|
7,032
|
|
7,488
|
Goodwill
|
|
4,772
|
|
4,775
|
Deferred Income
Taxes
|
|
139
|
|
250
|
Security
Deposits
|
|
75
|
|
76
|
Franchise Loans
Receivable
|
|
—
|
|
19
|
Other
Assets
|
|
1,314
|
|
1,180
|
Total
Assets
|
$
|
48,075
|
$
|
47,813
|
LIABILITIES
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Bank
indebtedness
|
$
|
86
|
$
|
18
|
Trade payables and
other liabilities
|
|
6,011
|
|
5,906
|
Loyalty
liability
|
|
194
|
|
191
|
Provisions
|
|
109
|
|
147
|
Income taxes
payable
|
|
128
|
|
53
|
Demand deposits from
customers
|
|
24
|
|
—
|
Short-term
debt
|
|
1,335
|
|
1,489
|
Long-term debt due
within one year
|
|
924
|
|
1,842
|
Lease liabilities due
within one year
|
|
799
|
|
857
|
Associate
interest
|
|
349
|
|
280
|
Total Current
Liabilities
|
|
9,959
|
|
10,783
|
Provisions
|
|
117
|
|
90
|
Long Term
Debt
|
|
13,519
|
|
12,712
|
Lease
Liabilities
|
|
4,206
|
|
4,250
|
Trust Unit
Liability
|
|
3,600
|
|
3,601
|
Deferred Income
Taxes
|
|
2,059
|
|
2,245
|
Other
Liabilities
|
|
1,197
|
|
957
|
Total
Liabilities
|
|
34,657
|
|
34,638
|
EQUITY
|
|
|
|
|
Share
Capital
|
|
3,599
|
|
3,626
|
Retained
Earnings
|
|
5,226
|
|
4,766
|
Contributed
Surplus
|
|
(1,180)
|
|
(979)
|
Accumulated Other
Comprehensive Income
|
|
166
|
|
196
|
Total Equity
Attributable to Shareholders of the Company
|
|
7,811
|
|
7,609
|
Non-Controlling
Interests
|
|
5,607
|
|
5,566
|
Total
Equity
|
|
13,418
|
|
13,175
|
Total Liabilities
and Equity
|
$
|
48,075
|
$
|
47,813
|
|
|
|
|
|
(i)
|
Certain comparative
figures have been restated to conform with current year
presentation.
|
Consolidated Statements of Cash Flows
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
|
Dec. 31,
2020
|
|
|
Dec. 31,
2019(i)
|
|
|
Dec. 31,
2020
|
|
|
Dec. 31,
2019(i)
|
For the periods ended
as indicated
|
|
(13
weeks)
|
|
|
(12 weeks)
|
|
|
(53
weeks)
|
|
|
(52 weeks)
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
|
|
Net
earnings
|
$
|
513
|
|
$
|
|
578
|
|
$
|
|
1,582
|
|
$
|
|
823
|
Add:
|
|
|
|
|
|
|
|
|
|
|
|
Net interest expense
and other financing charges
|
|
245
|
|
|
7
|
|
|
831
|
|
|
1,704
|
Income
taxes
|
|
148
|
|
|
133
|
|
|
475
|
|
|
431
|
Depreciation and
amortization
|
|
572
|
|
|
548
|
|
|
2,427
|
|
|
2,318
|
Asset impairments, net
of recoveries
|
|
24
|
|
|
50
|
|
|
39
|
|
|
46
|
Adjustment to fair
value of investment properties and
|
|
|
|
|
|
|
|
|
|
|
|
assets held for
sale
|
|
6
|
|
|
27
|
|
|
194
|
|
|
93
|
Change in allowance
for credit card receivables
|
|
(10)
|
|
|
8
|
|
|
41
|
|
|
29
|
Foreign currency
translation gain
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
—
|
Change in
provisions
|
|
(16)
|
|
|
15
|
|
|
(6)
|
|
|
(54)
|
|
|
1,482
|
|
|
1,365
|
|
|
5,583
|
|
|
5,390
|
Change in gross credit
card receivables
|
|
(91)
|
|
|
(263)
|
|
|
368
|
|
|
(238)
|
Change in non-cash
working capital
|
|
286
|
|
|
239
|
|
|
(57)
|
|
|
(7)
|
Income taxes
paid
|
|
(106)
|
|
|
(110)
|
|
|
(448)
|
|
|
(656)
|
Interest
received
|
|
6
|
|
|
7
|
|
|
25
|
|
|
35
|
Interest received from
finance leases
|
|
2
|
|
|
—
|
|
|
3
|
|
|
4
|
Other
|
|
(5)
|
|
|
34
|
|
|
47
|
|
|
27
|
Cash Flows from
Operating Activities
|
|
1,574
|
|
|
1,272
|
|
|
5,521
|
|
|
4,555
|
Investing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
Fixed asset and
investment properties purchases
|
|
(562)
|
|
|
(441)
|
|
|
(1,235)
|
|
|
(1,155)
|
Intangible asset
additions
|
|
(73)
|
|
|
(102)
|
|
|
(357)
|
|
|
(403)
|
Business acquisition,
net of cash acquired
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
Cash assumed on
initial consolidation of franchises
|
|
—
|
|
|
5
|
|
|
14
|
|
|
20
|
Proceeds from disposal
of assets
|
|
125
|
|
|
37
|
|
|
301
|
|
|
87
|
Lease payments
received from finance leases
|
|
—
|
|
|
2
|
|
|
5
|
|
|
8
|
Change in short-term
investments
|
|
(178)
|
|
|
(9)
|
|
|
(346)
|
|
|
52
|
Change in security
deposits
|
|
—
|
|
|
(18)
|
|
|
—
|
|
|
7
|
Other
|
|
39
|
|
|
21
|
|
|
(120)
|
|
|
(108)
|
Cash Flows used in
Investing Activities
|
|
(649)
|
|
|
(505)
|
|
|
(1,738)
|
|
|
(1,492)
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
Change in bank
indebtedness
|
|
(107)
|
|
|
(134)
|
|
|
68
|
|
|
(38)
|
Change in short-term
debt
|
|
85
|
|
|
237
|
|
|
(154)
|
|
|
(90)
|
Change in demand
deposits from customers
|
|
24
|
|
|
—
|
|
|
24
|
|
|
—
|
Proceeds from other
financing
|
|
235
|
|
|
9
|
|
|
231
|
|
|
435
|
Interest
paid
|
|
(180)
|
|
|
(181)
|
|
|
(883)
|
|
|
(891)
|
Long-term debt
– Issued
|
|
164
|
|
|
123
|
|
|
2,492
|
|
|
1,438
|
–
Repayments
|
|
(369)
|
|
|
(126)
|
|
|
(2,598)
|
|
|
(1,690)
|
Cash rent paid on
lease liabilities - Interest
|
|
(47)
|
|
|
(49)
|
|
|
(207)
|
|
|
(214)
|
Cash rent paid on
lease liabilities - Principal
|
|
(145)
|
|
|
(84)
|
|
|
(650)
|
|
|
(520)
|
Share capital
– Issued
|
|
1
|
|
|
1
|
|
|
1
|
|
|
40
|
– Purchased and held in trusts
|
|
—
|
|
|
—
|
|
|
(21)
|
|
|
(6)
|
– Purchased and cancelled
|
|
(123)
|
|
|
(25)
|
|
|
(123)
|
|
|
(25)
|
Loblaw common share
capital – Issued
|
|
1
|
|
|
2
|
|
|
30
|
|
|
82
|
– Purchased and held in trusts
|
|
—
|
|
|
(42)
|
|
|
(10)
|
|
|
(62)
|
– Purchased and cancelled
|
|
(275)
|
|
|
(163)
|
|
|
(552)
|
|
|
(937)
|
Choice Properties
units – Issued
|
|
—
|
|
|
—
|
|
|
—
|
|
|
345
|
– Issuance costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14)
|
Dividends
– To common shareholders
|
|
(5)
|
|
|
—
|
|
|
(328)
|
|
|
(319)
|
– To preferred shareholders
|
|
(3)
|
|
|
(3)
|
|
|
(44)
|
|
|
(44)
|
– To minority shareholders
|
|
(59)
|
|
|
—
|
|
|
(284)
|
|
|
(228)
|
Other
|
|
24
|
|
|
8
|
|
|
(27)
|
|
|
(12)
|
Cash Flows used in
Financing Activities
|
|
(779)
|
|
|
(427)
|
|
|
(3,035)
|
|
|
(2,750)
|
Effect of foreign
currency exchange rate changes on cash and
|
|
|
|
|
|
|
|
|
|
|
|
cash
equivalents
|
|
(1)
|
|
|
(1)
|
|
|
(1)
|
|
|
—
|
Change in Cash and
Cash Equivalents
|
|
145
|
|
|
339
|
|
|
747
|
|
|
313
|
Cash and Cash
Equivalents, Beginning of Period
|
|
2,436
|
|
|
1,495
|
|
|
1,834
|
|
|
1,521
|
Cash and Cash
Equivalents, End of Period
|
$
|
2,581
|
|
$
|
1,834
|
|
$
|
|
2,581
|
|
$
|
|
1,834
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Certain comparative
figures have been restated to conform with current year
presentation.
|
Basic and Diluted Net Earnings per Common Share
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
2020
|
|
Dec. 31,
2019
|
|
|
Dec. 31,
2020
|
|
|
Dec. 31,
2019
|
(millions of Canadian
dollars except where otherwise indicated)
|
|
(13
weeks)
|
|
|
(12 weeks)
|
|
|
|
(53
weeks)
|
|
|
|
(52 weeks)
|
For the periods ended
as indicated
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
|
(audited)
|
|
|
|
(audited)
|
Net earnings
attributable to shareholders of the Company
|
$
|
|
299
|
|
$
|
|
443
|
|
|
$
|
|
963
|
|
|
$
|
|
242
|
Prescribed dividends
on preferred shares in share capital
|
|
(10)
|
|
|
(10)
|
|
|
|
(44)
|
|
|
|
(44)
|
Net earnings
available to common shareholders of the
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Company
|
$
|
|
289
|
|
$
|
|
433
|
|
|
$
|
|
919
|
|
|
$
|
|
198
|
Reduction in net
earnings due to dilution at Loblaw
|
|
(1)
|
|
|
(1)
|
|
|
|
(4)
|
|
|
|
(4)
|
Net earnings
available to common shareholders
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
for diluted earnings per share
|
$
|
|
288
|
|
$
|
|
432
|
|
|
$
|
|
915
|
|
|
$
|
|
194
|
Weighted average
common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding
(in millions)
|
|
153.2
|
|
|
153.8
|
|
|
|
153.4
|
|
|
|
153.5
|
Dilutive effect of
equity-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
compensation(i) (in millions)
|
|
0.1
|
|
|
0.2
|
|
|
|
0.1
|
|
|
|
0.2
|
Diluted weighted
average common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(in millions)
|
|
153.3
|
|
|
154.0
|
|
|
|
153.5
|
|
|
|
153.7
|
Basic net earnings
per common share ($)
|
$
|
|
1.89
|
|
$
|
|
2.82
|
|
|
$
|
|
5.99
|
|
|
$
|
|
1.29
|
Diluted net earnings
per common share ($)
|
$
|
|
1.88
|
|
$
|
|
2.81
|
|
|
$
|
|
5.96
|
|
|
$
|
|
1.26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
In the fourth quarter
of 2020 and year-to-date, 1.7 million (December 31, 2019 – nil) and
1.4 million (December 31, 2019 – 1.0 million) potentially dilutive
instruments, respectively, were excluded from the computation of
diluted net earnings per common share as they were
anti-dilutive.
|
SEGMENT INFORMATION
The Company has three reportable operating segments: Loblaw,
Choice Properties and Weston Foods. Other and Intersegment includes
eliminations, intersegment adjustments related to the
consolidation, cash and short-term investments held by the Company
and all other company level activities that are not allocated to
the reportable operating segments, as further illustrated
below.
The accounting policies of the reportable operating segments are
the same as those described in the Company's 2020 audited annual
consolidated financial statements. The Company measures each
reportable operating segment's performance based on adjusted
EBITDA(1) and adjusted operating income(1).
No reportable operating segment is reliant on any single external
customer.
|
Quarters
Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
2020
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
2019
|
|
|
|
|
|
|
|
|
|
|
|
(13
weeks)
|
|
|
|
|
|
|
|
|
|
|
|
(12 weeks)
|
(unaudited)
($ millions of Canadian dollars)
|
|
Loblaw
|
|
|
Choice
Properties
|
|
|
Weston
Foods
|
|
|
Other and
Intersegment
|
|
|
Total
|
|
|
Loblaw
|
|
|
Choice
Properties
|
|
|
Weston
Foods
|
|
|
Other and
Intersegment
|
|
|
Total
|
Revenue
|
$
|
13,286
|
|
$
|
322
|
|
$
|
523
|
|
$
|
(325)
|
|
$
|
13,806
|
|
$
|
11,590
|
|
$
|
318
|
|
$
|
522
|
|
$
|
(323)
|
|
$
|
12,107
|
Operating income
(loss)
|
$
|
700
|
|
$
|
332
|
|
$
|
35
|
|
$
|
(161)
|
|
$
|
906
|
|
$
|
539
|
|
$
|
220
|
|
$
|
27
|
|
$
|
(68)
|
|
$
|
718
|
Net interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(income) and other
financing charges
|
|
166
|
|
|
217
|
|
|
—
|
|
|
(138)
|
|
|
245
|
|
|
176
|
|
|
(74)
|
|
|
—
|
|
|
(95)
|
|
|
7
|
Earnings (loss)
before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
$
|
534
|
|
$
|
115
|
|
$
|
35
|
|
$
|
(23)
|
|
$
|
661
|
|
$
|
363
|
|
$
|
294
|
|
$
|
27
|
|
$
|
27
|
|
$
|
711
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
700
|
|
$
|
332
|
|
$
|
35
|
|
$
|
(161)
|
|
$
|
906
|
|
$
|
539
|
|
$
|
220
|
|
$
|
27
|
|
$
|
(68)
|
|
$
|
718
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization
|
|
609
|
|
|
1
|
|
|
41
|
|
|
(79)
|
|
|
572
|
|
|
589
|
|
|
—
|
|
|
36
|
|
|
(77)
|
|
|
548
|
Adjusting
items(i)
|
|
21
|
|
|
(107)
|
|
|
3
|
|
|
106
|
|
|
23
|
|
|
75
|
|
|
5
|
|
|
(7)
|
|
|
12
|
|
|
85
|
Adjusted
EBITDA(i)
|
$
|
1,330
|
|
$
|
226
|
|
$
|
79
|
|
$
|
(134)
|
|
$
|
1,501
|
|
$
|
1,203
|
|
$
|
225
|
|
$
|
56
|
|
$
|
(133)
|
|
$
|
1,351
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization(ii)
|
|
492
|
|
|
1
|
|
|
33
|
|
|
(79)
|
|
|
447
|
|
|
473
|
|
|
—
|
|
|
33
|
|
|
(77)
|
|
|
429
|
Adjusted
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
(loss)(i)
|
$
|
838
|
|
$
|
225
|
|
$
|
46
|
|
$
|
(55)
|
|
$
|
1,054
|
|
$
|
730
|
|
$
|
225
|
|
$
|
23
|
|
$
|
(56)
|
|
$
|
922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Certain items are
excluded from operating income (loss) to derive adjusted
EBITDA(1). Adjusted EBITDA(1) is used
internally by management when analyzing segment underlying
operating performance.
|
(ii)
|
Excludes
$117 million (2019 – $116 million) of amortization of
intangible assets acquired with Shoppers Drug Mart, recorded by
Loblaw and $8 million (2019 – $3 million) of accelerated
depreciation recorded by Weston Foods, related to restructuring and
other related costs.
|
|
Years Ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
2020
|
|
|
|
|
|
|
|
|
|
|
|
Dec. 31,
2019
|
|
|
|
|
|
|
|
|
|
|
|
(53
weeks)
|
|
|
|
|
|
|
|
|
|
|
|
(52 weeks)
|
(unaudited)
($ millions of Canadian dollars)
|
|
Loblaw
|
|
|
Choice
Properties
|
|
|
Weston
Foods
|
|
|
Other and
Intersegment
|
|
|
Total
|
|
|
Loblaw
|
|
|
Choice
Properties
|
|
|
Weston
Foods
|
|
|
Other and
Intersegment
|
|
|
Total
|
Revenue
|
$
|
52,714
|
|
$
|
1,271
|
|
$
|
2,062
|
|
$
|
(1,342)
|
|
$
|
54,705
|
|
$
|
48,037
|
|
$
|
1,289
|
|
$
|
2,155
|
|
$
|
(1,372)
|
|
$
|
50,109
|
Operating income
(loss)
|
$
|
2,357
|
|
$
|
622
|
|
$
|
3
|
|
$
|
(94)
|
|
$
|
2,888
|
|
$
|
2,262
|
|
$
|
890
|
|
$
|
72
|
|
$
|
(266)
|
|
$
|
2,958
|
Net interest
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(income) and other
financing charges
|
|
742
|
|
|
173
|
|
|
(1)
|
|
|
(83)
|
|
|
831
|
|
|
747
|
|
|
1,472
|
|
|
1
|
|
|
(516)
|
|
|
1,704
|
Earnings (loss)
before
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
$
|
1,615
|
|
$
|
449
|
|
$
|
4
|
|
$
|
(11)
|
|
$
|
2,057
|
|
$
|
1,515
|
|
$
|
(582)
|
|
$
|
71
|
|
$
|
250
|
|
$
|
1,254
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
|
2,357
|
|
$
|
622
|
|
$
|
3
|
|
$
|
(94)
|
|
$
|
2,888
|
|
$
|
2,262
|
|
$
|
890
|
|
$
|
72
|
|
$
|
(266)
|
|
$
|
2,958
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization
|
|
2,596
|
|
|
3
|
|
|
175
|
|
|
(347)
|
|
|
2,427
|
|
|
2,524
|
|
|
1
|
|
|
147
|
|
|
(354)
|
|
|
2,318
|
Adjusting
items(i)
|
|
80
|
|
|
254
|
|
|
22
|
|
|
(64)
|
|
|
292
|
|
|
118
|
|
|
23
|
|
|
4
|
|
|
62
|
|
|
207
|
Adjusted
EBITDA(i)
|
$
|
5,033
|
|
$
|
879
|
|
$
|
200
|
|
$
|
(505)
|
|
$
|
5,607
|
|
$
|
4,904
|
|
$
|
914
|
|
$
|
223
|
|
$
|
(558)
|
|
$
|
5,483
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization(ii)
|
|
2,087
|
|
|
3
|
|
|
145
|
|
|
(347)
|
|
|
1,888
|
|
|
2,016
|
|
|
1
|
|
|
138
|
|
|
(354)
|
|
|
1,801
|
Adjusted
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income
(loss)(i)
|
$
|
2,946
|
|
$
|
876
|
|
$
|
55
|
|
$
|
(158)
|
|
$
|
3,719
|
|
$
|
2,888
|
|
$
|
913
|
|
$
|
85
|
|
$
|
(204)
|
|
$
|
3,682
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
Certain items are
excluded from operating income (loss) to derive adjusted
EBITDA(1). Adjusted EBITDA(1) is used
internally by management when analyzing segment underlying
operating performance.
|
(ii)
|
Excludes
$509 million (2019 – $508 million) of amortization of
intangible assets acquired with Shoppers Drug Mart, recorded by
Loblaw and $30 million (2019 – $9 million) of accelerated
depreciation recorded by Weston Foods, related to restructuring and
other related costs.
|
NON-GAAP FINANCIAL MEASURES POLICY CHANGE COMMENCING
FISCAL 2021
In 2020, management undertook a review of historical adjusting
items as part of an effort to reduce the number of non-GAAP items
it adjusts for in its financial reporting. Management concluded
that, in order to present adjusting items in a manner more
consistent with that of its Canadian and U.S. peers, the Company
will no longer adjust for asset impairments (net of recoveries),
certain restructuring and other related costs, pension settlement
costs, statutory corporate income tax rate changes or other
items.
Starting in the first quarter of 2021, restructuring and other
related costs will be considered an adjusting item only if
significant and if part of a publicly announced restructuring plan.
Other unusual items will be assessed on a case by case basis based
on their nature, magnitude and propensity to re-occur. This change
will take effect in the first quarter of 2021 with restatement of
comparative periods at that time.
The below summaries are presented for informational purposes and
reconciles the non-GAAP financial measures as previously reported
in 2020 to those which will be reported under the new policy
beginning in 2021.
Adjusted Operating Income and Adjusted EBITDA:
|
Quarters
Ended
|
|
March 21,
2020
|
June 13,
2020
|
October 3,
2020
|
|
(12 weeks)
|
(12 weeks)
|
(16 weeks)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
($ millions)
|
Loblaw
|
Choice
Properties
|
Weston
Foods
|
Other
|
Consoli-
dated
|
Loblaw
|
Choice
Properties
|
Weston
Foods
|
Other
|
Consoli-
dated
|
Loblaw
|
Choice
Properties
|
Weston
Foods
|
Other
|
Consoli-
dated
|
Adjusted
Operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income -
previously
reported
|
$
|
692
|
$
|
226
|
$
|
18
|
$
|
(64)
|
$
|
872
|
$
|
534
|
$
|
201
|
$
|
(27)
|
$
|
(59)
|
$
|
649
|
$
|
882
|
$
|
224
|
$
|
18
|
$
|
20
|
$
|
1,144
|
Add
(deduct)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
impact of the
following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset
Impairments,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of
recoveries
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
—
|
Restructuring
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and other
related
costs
|
(4)
|
—
|
—
|
—
|
(4)
|
(8)
|
—
|
—
|
—
|
(8)
|
(6)
|
—
|
—
|
—
|
(6)
|
Adjusting
Items
|
$
|
(4)
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
(4)
|
$
|
(8)
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
(8)
|
$
|
(6)
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
(6)
|
Adjusted
operating
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income -
Restated
|
688
|
226
|
18
|
(64)
|
868
|
526
|
201
|
(27)
|
(59)
|
641
|
876
|
224
|
18
|
20
|
1,138
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization
|
594
|
1
|
43
|
(78)
|
560
|
598
|
—
|
44
|
(76)
|
566
|
795
|
1
|
47
|
(114)
|
729
|
Less:
Amortization
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of intangible
assets acquired
with Shoppers
Drug Mart
|
(119)
|
—
|
—
|
—
|
(119)
|
(118)
|
—
|
—
|
—
|
(118)
|
(155)
|
—
|
—
|
—
|
(155)
|
Less:
Accelerated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
—
|
—
|
(9)
|
—
|
(9)
|
—
|
—
|
(10)
|
—
|
(10)
|
—
|
—
|
(3)
|
—
|
(3)
|
Adjusted EBITDA
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated
|
$
|
1,163
|
$
|
227
|
$
|
52
|
$
|
(142)
|
$
|
1,300
|
$
|
1,006
|
$
|
201
|
$
|
7
|
$
|
(135)
|
$
|
1,079
|
$
|
1,516
|
$
|
225
|
$
|
62
|
$
|
(94)
|
$
|
1,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ended
|
Year
Ended
|
|
December 31,
2020
|
December 31,
2020
|
|
(13 weeks)
|
(53
weeks)
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited)
($ millions)
|
Loblaw
|
Choice
Properties
|
Weston
Foods
|
Other
|
Consolidated
|
Loblaw
|
Choice
Properties
|
Weston
Foods
|
Other
|
Consolidated
|
Adjusted Operating
income -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
previously
reported
|
$
|
838
|
$
|
225
|
$
|
46
|
$
|
(55)
|
$
|
1,054
|
$
|
2,946
|
$
|
876
|
$
|
55
|
$
|
(158)
|
$
|
3,719
|
Add (deduct) impact of
the
|
|
|
|
|
|
|
|
|
|
|
following:
|
|
|
|
|
|
|
|
|
|
|
Asset Impairments, net
of
|
|
|
|
|
|
|
|
|
|
|
recoveries
|
(17)
|
—
|
—
|
(6)
|
(23)
|
(17)
|
—
|
—
|
(6)
|
(23)
|
Restructuring
and other
|
|
|
|
|
|
|
|
|
|
|
related costs
|
—
|
—
|
—
|
—
|
—
|
(18)
|
—
|
—
|
—
|
(18)
|
Adjusting
Items
|
$
|
(17)
|
$
|
—
|
$
|
—
|
$
|
(6)
|
$
|
(23)
|
$
|
(35)
|
$
|
—
|
$
|
—
|
$
|
(6)
|
$
|
(41)
|
Adjusted operating
income -
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restated
|
$
|
821
|
$
|
225
|
$
|
46
|
$
|
(61)
|
$
|
1,031
|
$
|
2,911
|
$
|
876
|
$
|
55
|
$
|
(164)
|
$
|
3,678
|
Depreciation
and
|
|
|
|
|
|
|
|
|
|
|
|
amortization
|
609
|
1
|
41
|
(79)
|
572
|
2,596
|
3
|
175
|
(347)
|
$
|
2,427
|
Less:
Amortization of
|
|
|
|
|
|
|
|
|
|
|
intangible assets
acquired
with Shoppers Drug Mart
|
(117)
|
—
|
—
|
—
|
(117)
|
(509)
|
—
|
—
|
—
|
(509)
|
Less:
Accelerated
|
|
|
|
|
|
|
|
|
|
|
Depreciation
|
—
|
—
|
(8)
|
—
|
(8)
|
—
|
—
|
(30)
|
—
|
(30)
|
Adjusted EBITDA -
Restated
|
$
|
1,313
|
$
|
226
|
$
|
79
|
$
|
(140)
|
$
|
1,478
|
$
|
4,998
|
$
|
879
|
$
|
200
|
$
|
(511)
|
$
|
5,566
|
|
|
|
|
|
|
|
|
Adjusted Net Earnings Available to Common Shareholders and
Adjusted Diluted Net earnings per Common Share are presented
below:
|
Quarters
Ended
|
|
|
Year Ended
|
|
|
March 21,
2020
|
|
June 13,
2020
|
October 3,
2020
|
December 31,
2020
|
December 31,
2020
|
|
|
(12 weeks)
|
|
(12 weeks)
|
|
|
(16 weeks)
|
(13 weeks)
|
(53 weeks)
|
|
|
Net Earnings
Available to
Common
Shareholders
of the
Company
($ millions)
|
Diluted
Net
Earnings
Per
Common
Share
|
Net Earnings
Available to
Common
Shareholders
of the
Company
($ millions)
|
Diluted
Net
Earnings
Per
Common
Share
|
Net Earnings
Available to
Common
Shareholders
of the
Company
($ millions)
|
Diluted
Net
Earnings
Per
Common
Share
|
Net Earnings
Available to
Common
Shareholders
of the
Company
($ millions)
|
Diluted
Net
Earnings
Per
Common
Share
|
Net Earnings
Available to
Common
Shareholders
of the
Company
($ millions)
|
Diluted
Net
Earnings
Per
Common
Share
|
(unaudited)
($ except where
otherwise indicated)
|
|
Adjusted -
As previously
reported
|
|
$
|
239
|
$
|
1.55
|
$
|
142
|
$
|
0.93
|
$
|
362
|
$
|
2.35
|
$
|
312
|
$
|
2.03
|
$
|
1,055
|
$
|
6.85
|
Add (deduct)
impact of the
following:
|
|
|
|
|
|
|
|
|
|
|
|
Asset
impairments,
net of
recoveries
|
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
(11)
|
$
|
(0.08)
|
$
|
(11)
|
$
|
(0.08)
|
Restructuring
and other
related costs
|
|
(2)
|
(0.01)
|
(3)
|
(0.02)
|
(2)
|
(0.01)
|
—
|
—
|
(7)
|
(0.04)
|
Statutory
corporate
income tax rate
change
|
|
2
|
0.01
|
—
|
—
|
(1)
|
(0.01)
|
1
|
0.01
|
2
|
0.01
|
Adjusting
items
|
|
$
|
—
|
$
|
—
|
$
|
(3)
|
$
|
(0.02)
|
$
|
(3)
|
$
|
(0.02)
|
$
|
(10)
|
$
|
(0.07)
|
$
|
(16)
|
$
|
(0.11)
|
Adjusted -
Restated
|
|
$
|
239
|
$
|
1.55
|
$
|
139
|
$
|
0.91
|
$
|
359
|
$
|
2.33
|
$
|
302
|
$
|
1.96
|
$
|
1,039
|
$
|
6.74
|
|
|
|
|
|
|
|
|
|
|
|
|
There were no impacts to previously reported adjusted net
interest expense and other financing charges as a result of this
change as reported in the Company's 2020 annual and interim
MD&A.
2020 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,
2020 are available in the Investor Centre section of the
Company's website at www.weston.ca and have been filed on
SEDAR and are available at www.sedar.com.
INVESTOR RELATIONS
Shareholders, security analysts and investment professionals
should direct their requests to Tara
Speers, Senior Director, Investor Relations,
at the Company's Executive Office or by e-mail at
investor@weston.ca.
Additional financial information has been filed electronically
with various securities regulators in Canada through SEDAR. This News Release
includes selected information on Loblaw, a public company with
shares trading on the Toronto Stock Exchange ("TSX"). For
information regarding Loblaw, readers should refer to the materials
filed by Loblaw on SEDAR from time to time. These filings are also
maintained on Loblaw's corporate website at www.loblaw.ca.
This News Release also includes selected information on Choice
Properties, a public real estate investment trust with units
trading on the TSX. For information regarding Choice Properties,
readers should refer to the materials filed by Choice Properties on
SEDAR from time to time. These filings are also maintained on
Choice Properties' website at www.choicereit.ca.
FOURTH QUARTER CONFERENCE CALL AND WEBCAST
George Weston Limited will host a conference call as well as an
audio webcast on Tuesday, March 2, 2021 at 9:00 a.m.
(ET). To access via tele-conference, please dial
(647) 427-7450 or 1-888-231-8191. The playback will be
available two hours after the event at (416) 849-0833 or
1-855-859-2056, passcode: 5986725#. To access via audio webcast,
please visit the Investor Centre section of www.weston.ca.
Pre-registration will be available.
Ce rapport est disponible en français.
|
|
Endnotes
|
|
|
(1)
|
See the "Non-GAAP
Financial Measures" section of the Company's 2020 Annual Report,
which includes the reconciliation of such non-GAAP
measures to the most directly comparable GAAP measures.
|
|
|
(2)
|
This News Release
contains forward-looking information. See "Forward-Looking
Statements" section of this News Release and the
Company's 2020 Annual Report 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 and assumptions
that were used when making these statements. This News Release
should
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.
|
|
|
SOURCE George Weston Limited