TRANSCONTINENTAL INC SUBSCRIPTION RECEIPTS FOR SHS A SUBORDINATE VOTING Highlights
- Generated significant organic sales growth and improved profitability in the Packaging Sector, and maintained rigorous cost control in the Printing Sector.
- Revenues of $622.7 million for the quarter ended January 24, 2021; operating earnings of $47.2 million; and net earnings attributable to shareholders of the Corporation of $27.7 million ($0.32 per share).
- Adjusted operating earnings before depreciation and amortization(1) of $105.7 million for the quarter ended January 24, 2021; adjusted operating earnings(1) of $68.6 million; and adjusted net earnings attributable to shareholders of the Corporation(1) of $43.8 million ($0.50 per share).
- Maintained a solid financial position with liquidities of $182.0 million and access to unused lines of credit of $428.5 million, for total available liquidities of $610.5 million.
- Improved net indebtedness ratio(1) to 1.8x as a result of the decrease in net indebtedness of $45.9 million during the first quarter.
- Standard & Poor's rating agency announced a favourable revision of Transcontinental's credit rating, from BBB- / negative outlook to BBB- / stable outlook.
- Named to Corporate Knights' 2021 Global 100 Most Sustainable Corporations in the World and included among the 50 corporations with the lowest ESG risk by Sustainalytics.
(1) Please refer to the section entitled "Non-IFRS Financial Measures" in this press release for a definition of these measures.
MONTREAL, Feb. 25, 2021 (GLOBE NEWSWIRE) -- Transcontinental Inc. (TSX: TCL.A TCL.B) announces its results for the first quarter of fiscal 2021, which ended January 24, 2021.
"I am very satisfied with our first quarter performance, which bodes well for fiscal 2021, said François Olivier, President and Chief Executive Officer of TC Transcontinental. Once again, these results attest to the relevance of our strategy, the resilience of our business model, our operational excellence as well as the responsible management of our operations as a whole.
"Our Packaging Sector, our main engine of growth, posted organic sales growth in the quarter that exceeded our expectations. This growth stems from customer demand, which remains robust, revenues from signed contracts and the introduction of new products on the market in the previous quarters. In addition, efficiency gains contributed to the improvement of the sector's profitability compared to the prior year. To fuel our organic sales growth, we continue to invest in research and development, mainly in sustainable packaging that contributes to the circular economy for plastics. In fact, we are proud that our compostable packaging for Maxwell House Canada's coffee pods has recently been recognized by the Packaging Association of Canada for its best in class sustainable design.
"Our Printing Sector continued to demonstrate its resilience as the operations of several of our customers are still affected by the pandemic. Our cost reduction measures enabled us to continue to generate a solid operating margin as well as significant cash flows. While we remain cautious about the evolution of COVID-19 and the restrictions implemented to control its spread, we believe that we will be able to gradually increase printing volumes in the coming quarters. Finally, our Media Sector continued to deliver excellent results.
"To conclude, our first quarter performance and our solid financial position give us the momentum and the capacity to confidently pursue our investment strategy focused on organic sales growth as well as strategic and targeted acquisitions."
Financial Highlights
| (in millions of dollars, except per share amounts) | Q1 - 2021 | Q1 - 2020 | Variation in % | ||
| Revenues | $622.7 | $705.8 | (11.8 | ) | % |
| Operating earnings before depreciation and amortization | 100.9 | 95.7 | 5.4 | ||
| Adjusted operating earnings before depreciation and amortization (1) | 105.7 | 109.0 | (3.0 | ) | |
| Operating earnings | 47.2 | 40.8 | 15.7 | ||
| Adjusted operating earnings (1) | 68.6 | 72.1 | (4.9 | ) | |
| Net earnings attributable to shareholders of the Corporation | 27.7 | 6.4 | n/a | ||
| Net earnings attributable to shareholders of the Corporation per share | 0.32 | 0.07 | n/a | ||
| Adjusted net earnings attributable to shareholders of the Corporation (1) | 43.8 | 42.8 | 2.3 | ||
| Adjusted net earnings attributable to shareholders of the Corporation per share (1) | 0.50 | 0.49 | 2.0 | ||
| (1) Please refer to the section entitled "Reconciliation of Non-IFRS Financial Measures" in this press release for adjusted data presented above. | |||||
2021 First Quarter Results
Revenues decreased by $83.1 million, or 11.8%, from $705.8 million in the first quarter of 2020 to $622.7 million in the corresponding period of 2021. This decline is mainly attributable to lower volume in the Printing Sector due to the impact of the COVID-19 pandemic and the sale of the paper packaging operations, which occurred toward the end of the first quarter of the previous year. This decrease was partially mitigated by the solid organic growth in revenues in the Packaging Sector and the revenues generated by the acquisition of Artisan Complete Limited in the Printing Sector.
Operating earnings increased by $6.4 million, or 15.7%, from $40.8 million in the first quarter of 2020 to $47.2 million in the first quarter of 2021. The increase in operating earnings is explained by the organic growth in the Packaging Sector. In addition, in the Printing Sector, initiatives to optimize operational efficiency and the Canada Emergency Wage Subsidy offset a majority of the decrease in volume.
Adjusted operating earnings decreased by $3.5 million, or 4.9%, from $72.1 million in the first quarter of 2020 to $68.6 million in the first quarter of 2021. The decrease is mainly explained by lower adjusted operating earnings in the Printing Sector, partially mitigated by higher adjusted operating earnings in the Packaging Sector.
In the Packaging Sector, adjusted operating earnings increased by $3.1 million, or 11.2%, from $27.6 million in the first quarter of 2020 to $30.7 million in the first quarter of 2021, despite the sale of the paper packaging operations. This increase is mainly attributable to higher demand in most of our segments as well as efficiency gains in the sector, and was partially offset by the temporary negative impact of the significant and rapid increase in the price of resin.
In the Printing Sector, adjusted operating earnings decreased by $5.5 million, or 10.6%, from $51.8 million in the first quarter of 2020 to $46.3 million in the first quarter of 2021. The decrease is due to lower volume in our main segments caused by the effects of the COVID-19 pandemic. Cost reduction initiatives undertaken by the sector combined with the Canada Emergency Wage Subsidy partially mitigated this decrease.
Net earnings attributable to shareholders of the Corporation increased by $21.3 million, from $6.4 million in the first quarter of 2020 to $27.7 million in the first quarter of 2021. This increase is mostly explained by the income tax expense related to the sale of the paper packaging operations in the first quarter of 2020, higher operating earnings and the decrease in net financial expenses resulting from a reduction in net indebtedness and a lower weighted average interest rate. On a per share basis, net earnings attributable to shareholders of the Corporation went from $0.07 to $0.32.
Adjusted net earnings attributable to shareholders of the Corporation increased by $1.0 million, or 2.3%, from $42.8 million in the first quarter of 2020 to $43.8 million in the first quarter of 2021. This variation is mostly explained by the decrease in net financial expenses resulting from a reduction in net indebtedness and a lower weighted average interest rate as well as a decrease in adjusted income taxes. This increase was partially offset by lower adjusted operating earnings. On a per share basis, adjusted net earnings attributable to shareholders of the Corporation went from $0.49 to $0.50.
Outlook
In the Packaging Sector, the vast majority of our operations support the retail supply chain for food and everyday consumer products, which continue to generate strong demand in the context of the COVID-19 pandemic. Despite the uncertainties related to the pandemic, we expect organic growth in revenues in fiscal 2021 as a result of signing new contracts and introducing new products on the market. The significant and rapid increase in the price of resin seen recently should have a negative impact on the sector's profitability. Excluding the impact of resin and the disposal of the paper packaging operations, we expect to post a slight increase in operating earnings compared to the prior fiscal year, as a result of our operational efficiency initiatives and the anticipated organic growth in revenues. Furthermore, the appreciation of the Canadian dollar against the US dollar in the last year should have a negative impact on revenues and operating earnings in the coming quarters.
In the Printing Sector, the pandemic should continue to negatively affect several of our customers, and this should have an adverse impact on our revenues for the first half of fiscal 2021. Operational efficiency initiatives and the continuation, to a lesser extent, of the Canada Emergency Wage Subsidy should partially mitigate the impact of lower volume on operating earnings. With a gradual recovery in printing volume, we expect organic growth in revenues in the second half of fiscal 2021. Excluding amounts related to the Canada Emergency Wage Subsidy, we expect operating earnings to grow in fiscal 2021 compared to fiscal 2020.
To conclude, despite the impact of the pandemic, we expect to continue generating significant cash flows. This should enable us to reduce our net indebtedness, while providing us with the flexibility needed to pursue our investment strategy focused on organic growth as well as strategic and targeted acquisitions.
Non-IFRS Financial Measures
In this document, unless otherwise indicated, all financial data are prepared in accordance with International Financial Reporting Standards (IFRS) and the term "dollar", as well as the symbol "$" designate Canadian dollars.
In addition, in this press release, we also use non-IFRS financial measures for which a complete definition is presented below and for which a reconciliation to financial information in accordance with IFRS is presented in the section entitled "Reconciliation of Non-IFRS Financial Measures" and in Note 3, "Segmented Information", to the unaudited condensed interim consolidated financial statements for the first quarter ended January 24, 2021.
| Terms Used | Definitions |
| Adjusted operating earnings before depreciation and amortization | Operating earnings before depreciation and amortization as well as restructuring and other costs (gains) and impairment of assets. |
| Adjusted operating earnings margin before depreciation and amortization | Adjusted operating earnings before depreciation and amortization divided by revenues. |
| Adjusted operating earnings | Operating earnings before restructuring and other costs (gains), impairment of assets, as well as amortization of intangible assets arising from business combinations. |
| Adjusted operating earnings margin | Adjusted operating earnings divided by revenues. |
| Adjusted income taxes | Income taxes before income taxes on restructuring and other costs (gains), impairment of assets, amortization of intangible assets arising from business combinations as well as the effect of the U.S. tax reform on deferred taxes. |
| Adjusted net earnings attributable to shareholders of the Corporation | Net earnings attributable to shareholders of the Corporation before restructuring and other costs (gains), impairment of assets, amortization of intangible assets arising from business combinations, net of related income taxes as well as the effect of the U.S. tax reform on deferred taxes. |
| Net indebtedness | Total of long-term debt, of current portion of long-term debt, of lease liabilities and of current portion of lease liabilities, less cash. |
| Net indebtedness ratio | Net indebtedness divided by the last 12 months’ adjusted operating earnings before depreciation and amortization. |
Reconciliation of Non-IFRS Financial Measures
The financial information has been prepared in accordance with IFRS. However, financial measures used, namely adjusted operating earnings before depreciation and amortization, adjusted operating earnings, adjusted operating earnings margin, adjusted income taxes, adjusted net earnings attributable to shareholders of the Corporation, adjusted net earnings attributable to shareholders of the Corporation per share, net indebtedness and net indebtedness ratio, for which a reconciliation is presented in the following table, do not have any standardized meaning under IFRS and could be calculated differently by other companies. We believe that many of our readers analyze the financial performance of the Corporation’s activities based on these non-IFRS financial measures as such measures may allow for easier comparisons between periods. These measures should be considered as a complement to financial performance measures in accordance with IFRS. They do not substitute and are not superior to them.
The Corporation also believes that these measures are useful indicators of the performance of its operations and its ability to meet its financial obligations. Furthermore, management also uses some of these non-IFRS financial measures to assess the performance of its activities and managers.
| Reconciliation of operating earnings - First quarter | ||||||
| Three months ended | ||||||
| (in millions of dollars) | January 24, 2021 | January 26, 2020 | ||||
| Operating earnings | $47.2 | $40.8 | ||||
| Restructuring and other costs | 4.8 | 13.3 | ||||
| Amortization of intangible assets arising from business combinations (1) | 16.6 | 18.0 | ||||
| Adjusted operating earnings | $68.6 | $72.1 | ||||
| Depreciation and amortization (2) | 37.1 | 36.9 | ||||
| Adjusted operating earnings before depreciation and amortization | $105.7 | $109.0 | ||||
| (1) Intangible assets arising from business combinations include our customer relationships, trademarks and non-compete agreements. | ||||||
| (2) Depreciation and amortization excludes the amortization of intangible assets arising from business combinations. | ||||||
| Reconciliation of net earnings attributable to shareholders of the Corporation - First quarter | ||||
| Three months ended | ||||
| January 24, 2021 | January 26, 2020 | |||
| (in millions of dollars, except per share amounts) | Total | Per share | Total | Per share |
| Net earnings attributable to shareholders of the Corporation | $27.7 | $0.32 | $6.4 | $0.07 |
| Restructuring and other costs, net of related income taxes | 3.5 | 0.04 | 22.8 | 0.26 |
| Amortization of intangible assets arising from business combinations, net of related income taxes (1) | 12.6 | 0.14 | 13.6 | 0.16 |
| Adjusted net earnings attributable to shareholders of the Corporation | $43.8 | $0.50 | $42.8 | $0.49 |
| (1) Intangible assets arising from business combinations include our customer relationships, trademarks and non-compete agreements. | ||||
| Reconciliation of net indebtedness | ||||||
| (in millions of dollars, except ratios) | As at January 24, 2021 | As at October 25, 2020 | ||||
| Long-term debt | $578.9 | $790.4 | ||||
| Current portion of long-term debt | 337.7 | 229.7 | ||||
| Lease liabilities | 130.7 | 132.0 | ||||
| Current portion of lease liabilities | 22.7 | 22.8 | ||||
| Cash | (182.0 | ) | (241.0 | ) | ||
| Net indebtedness | $888.0 | $933.9 | ||||
| Adjusted operating earnings before depreciation and amortization (last 12 months) | $496.1 | $499.4 | ||||
| Net indebtedness ratio | 1.8 | x | 1.9 | x | ||
Dividend
The Corporation's Board of Directors declared a quarterly dividend of $0.225 per share on Class A Subordinate Voting Shares and Class B Shares. This dividend is payable on April 6, 2021 to shareholders of record at the close of business on March 22, 2021.
Normal Course Issuer Bid
The Corporation was authorized to repurchase, for cancellation on the open market, or subject to the approval of any securities authority by private agreements, between October 1, 2020 and September 30, 2021, or at an earlier date if the Corporation concludes or cancels the offer, up to 1,000,000 of its Class A Subordinate Voting Shares and up to 191,320 of its Class B Shares. Under the current repurchase program, the Corporation has not repurchased any shares to date.
Additional information
Conference Call
Upon releasing its 2021 first quarter results, the Corporation will hold a conference call for the financial community on February 25, 2021 at 4:15 p.m. The dial-in numbers are 1 647 788-4922 or 1 877 223-4471. Media may hear the call in listen-only mode or tune in to the simultaneous audio broadcast on the Corporation’s website, which will then be archived for 30 days. For media requests or interviews, please contact Nathalie St-Jean, Senior Advisor, Corporate Communications of TC Transcontinental, at 514 954-3581.
Profile
TC Transcontinental is a leader in flexible packaging in North America, and Canada’s largest printer. The Corporation is also positioned as the leading Canadian French-language educational publishing group. For over 45 years, TC Transcontinental's mission has been to create quality products and services that allow businesses to attract, reach and retain their target customers.
Respect, teamwork, performance and innovation are the strong values held by the Corporation and its employees. TC Transcontinental's commitment to its stakeholders is to pursue its business activities in a responsible manner.
Transcontinental Inc. (TSX: TCL.A TCL.B), known as TC Transcontinental, has about 8,000 employees, the majority of which are based in Canada, the United States and Latin America. TC Transcontinental had revenues of approximately C$2.6 billion for the fiscal year ended October 25, 2020. For more information, visit TC Transcontinental's website at www.tc.tc.
Forward-looking Statements
Our public communications often contain oral or written forward-looking statements which are based on the expectations of management and inherently subject to a certain number of risks and uncertainties, known and unknown. By their very nature, forward-looking statements are derived from both general and specific assumptions. The Corporation cautions against undue reliance on such statements since actual results or events may differ materially from the expectations expressed or implied in them. Forward-looking statements may include observations concerning the Corporation's objectives, strategy, anticipated financial results and business outlook. The Corporation's future performance may also be affected by a number of factors, many of which are beyond the Corporation's will or control. These factors include, but are not limited to, the economic situation in the world, structural changes in the industries in which the Corporation operates, the impact of digital product development and adoption on the demand for retailer-related services and other printed products, the Corporation's ability to generate organic growth in highly competitive industries, the Corporation's ability to complete acquisitions in the packaging industry and properly integrate them, the inability to maintain or improve operational efficiency and avoid disruptions that could affect its ability to meet deadlines, cybersecurity and data protection, the political and social environment as well as regulatory and legislative changes, in particular with regard to the environment and door-to-door distribution, changes in consumption habits related, in particular, to issues involving sustainable development and the use of certain products or services such as door-to-door distribution, change in consumption habits or loss of a major customer, customer consolidation, the safety and quality of its packaging products used in the food industry, the protection of its intellectual property rights, the exchange rate, availability of capital at a reasonable rate, bad debts from certain customers, import and export controls, raw materials and transportation costs, recruiting and retaining qualified personnel in certain geographic areas and industry sectors, taxation, interest rates and the impact of the COVID-19 pandemic on its operations, facilities and financial results, changes in consumption habits from consumers and changes in the operations and financial position of the Corporation's customers due to the COVID-19 pandemic and the effectiveness of plans and measures implemented in response thereto. The main risks, uncertainties and factors that could influence actual results are described in the Management's Discussion and Analysis for the year ended October 25, 2020 and in the latest Annual Information Form.
Unless otherwise indicated by the Corporation, forward-looking statements do not take into account the potential impact of non-recurring or other unusual items, nor of disposals, business combinations, mergers or acquisitions which may be announced or entered into after the date of February 25, 2021. The forward-looking statements in this press release are made pursuant to the “safe harbour” provisions of applicable Canadian securities legislation. The forward-looking statements in this release are based on current expectations and information available as at February 25, 2021. Such forward-looking information may also be found in other documents filed with Canadian securities regulators or in other communications. The Corporation's management disclaims any intention or obligation to update or revise these statements unless otherwise required by the securities authorities.
For information:
| Media | Financial Community |
| Nathalie St-Jean | Yan Lapointe |
| Senior Advisor, Corporate Communications | Director, Investor Relations |
| TC Transcontinental | TC Transcontinental |
| Telephone: 514-954-3581 | Telephone: 514-954-3574 |
| nathalie.st-jean@tc.tc | yan.lapointe@tc.tc |
| www.tc.tc | www.tc.tc |
CONSOLIDATED STATEMENTS OF EARNINGS
Unaudited
| Three months ended | ||||||
| January 24, | January 26, | |||||
| (in millions of Canadian dollars, unless otherwise indicated and per share data) | 2021 | 2020 | ||||
| Revenues | $ | 622.7 | $ | 705.8 | ||
| Operating expenses | 517.0 | 596.8 | ||||
| Restructuring and other costs | 4.8 | 13.3 | ||||
| Operating earnings before depreciation and amortization | 100.9 | 95.7 | ||||
| Depreciation and amortization | 53.7 | 54.9 | ||||
| Operating earnings | 47.2 | 40.8 | ||||
| Net financial expenses | 10.8 | 14.0 | ||||
| Earnings before income taxes | 36.4 | 26.8 | ||||
| Income taxes | 8.6 | 20.3 | ||||
| Net earnings | 27.8 | 6.5 | ||||
| Non-controlling interest | 0.1 | 0.1 | ||||
| Net earnings attributable to the shareholders of the Corporation | $ | 27.7 | $ | 6.4 | ||
| Net earnings per share - basic and diluted | $ | 0.32 | $ | 0.07 | ||
| Weighted average number of shares outstanding - basic and diluted (in millions) | 87.0 | 87.3 | ||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Unaudited
| Three months ended | ||||||
| January 24, | January 26, | |||||
| (in millions of Canadian dollars) | 2021 | 2020 | ||||
| Net earnings | $ | 27.8 | $ | 6.5 | ||
| Other comprehensive income (loss) | ||||||
| Items that will be reclassified to net earnings | ||||||
| Net change related to cash flow hedges | ||||||
| Net change in the fair value of designated derivatives - foreign exchange risk | 4.3 | (0.5 | ) | |||
| Net change in the fair value of designated derivatives - interest rate risk | (0.4 | ) | 0.2 | |||
| Reclassification of the net change in the fair value of designated derivatives | ||||||
| recognized in net earnings during the period | 3.2 | 0.8 | ||||
| Related income taxes | 1.9 | 0.2 | ||||
| 5.2 | 0.3 | |||||
| Cumulative translation differences | ||||||
| Net unrealized exchange gains (losses) on the translation of the financial statements of foreign operations | (48.8 | ) | 7.5 | |||
| Net gains on hedge of the net investment in foreign operations | 23.5 | 0.8 | ||||
| Related income taxes | 3.0 | 0.2 | ||||
| (28.3 | ) | 8.1 | ||||
| Items that will not be reclassified to net earnings | ||||||
| Changes related to defined benefit plans | ||||||
| Actuarial gains (losses) on defined benefit plans | (9.7 | ) | 4.0 | |||
| Related income taxes | (2.8 | ) | 1.0 | |||
| (6.9 | ) | 3.0 | ||||
| Other comprehensive income (loss) | (30.0 | ) | 11.4 | |||
| Comprehensive income (loss) | $ | (2.2 | ) | $ | 17.9 | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Unaudited
| Accumulated | |||||||||||||||||||||
| other | Non- | ||||||||||||||||||||
| Share | Contributed | Retained | comprehensive | controlling | Total | ||||||||||||||||
| (in millions of Canadian dollars) | capital | surplus | earnings | loss | Total | interest | equity | ||||||||||||||
| Balance as at October 25, 2020 | $ | 640.0 | $ | 0.9 | $ | 1,107.2 | $ | (14.8 | ) | $ | 1,733.3 | $ | 5.3 | $ | 1,738.6 | ||||||
| Net earnings | — | — | 27.7 | — | 27.7 | 0.1 | 27.8 | ||||||||||||||
| Other comprehensive loss | — | — | — | (30.0 | ) | (30.0 | ) | — | (30.0 | ) | |||||||||||
| Shareholders' contributions and | |||||||||||||||||||||
| distributions to shareholders | |||||||||||||||||||||
| Dividends | — | — | (19.6 | ) | — | (19.6 | ) | — | (19.6 | ) | |||||||||||
| Balance as at January 24, 2021 | $ | 640.0 | $ | 0.9 | $ | 1,115.3 | $ | (44.8 | ) | $ | 1,711.4 | $ | 5.4 | $ | 1,716.8 | ||||||
| Balance as at October 27, 2019 | $ | 641.9 | $ | 1.1 | $ | 1,069.9 | $ | (25.9 | ) | $ | 1,687.0 | $ | 4.2 | $ | 1,691.2 | ||||||
| Impact of the transition to IFRS 16 | — | — | (13.2 | ) | — | (13.2 | ) | — | (13.2 | ) | |||||||||||
| Balance as at October 27, 2019 - adjusted | 641.9 | 1.1 | 1,056.7 | (25.9 | ) | 1,673.8 | 4.2 | 1,678.0 | |||||||||||||
| Net earnings | — | — | 6.4 | — | 6.4 | 0.1 | 6.5 | ||||||||||||||
| Other comprehensive income | — | — | — | 11.4 | 11.4 | — | 11.4 | ||||||||||||||
| Shareholders' contributions and | |||||||||||||||||||||
| distributions to shareholders | |||||||||||||||||||||
| Share redemptions | (3.8 | ) | — | (3.3 | ) | — | (7.1 | ) | — | (7.1 | ) | ||||||||||
| Exercise of stock options | 1.9 | (0.2 | ) | — | — | 1.7 | — | 1.7 | |||||||||||||
| Dividends | — | — | (19.2 | ) | — | (19.2 | ) | — | (19.2 | ) | |||||||||||
| Balance as at January 26, 2020 | $ | 640.0 | $ | 0.9 | $ | 1,040.6 | $ | (14.5 | ) | $ | 1,667.0 | $ | 4.3 | $ | 1,671.3 | ||||||
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
Unaudited
| As at | As at | |||||
| January 24, | October 25, | |||||
| (in millions of Canadian dollars) | 2021 | 2020 | ||||
| Current assets | ||||||
| Cash | $ | 182.0 | $ | 241.0 | ||
| Accounts receivable | 410.9 | 461.2 | ||||
| Income taxes receivable | 16.3 | 13.4 | ||||
| Inventories | 271.0 | 288.8 | ||||
| Prepaid expenses and other current assets | 27.7 | 20.3 | ||||
| 907.9 | 1,024.7 | |||||
| Property, plant and equipment | 699.2 | 712.4 | ||||
| Right-of-use assets | 133.4 | 134.6 | ||||
| Intangible assets | 538.1 | 568.5 | ||||
| Goodwill | 1,076.8 | 1,098.8 | ||||
| Deferred taxes | 24.5 | 24.2 | ||||
| Other assets | 28.2 | 35.2 | ||||
| $ | 3,408.1 | $ | 3,598.4 | |||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 336.3 | $ | 399.7 | ||
| Provisions | 6.1 | 7.9 | ||||
| Income taxes payable | 14.8 | 8.4 | ||||
| Deferred revenues and deposits | 9.5 | 9.0 | ||||
| Current portion of long-term debt | 337.7 | 229.7 | ||||
| Current portion of lease liabilities | 22.7 | 22.8 | ||||
| 727.1 | 677.5 | |||||
| Long-term debt | 578.9 | 790.4 | ||||
| Lease liabilities | 130.7 | 132.0 | ||||
| Deferred taxes | 129.9 | 133.9 | ||||
| Provisions | 0.6 | 0.3 | ||||
| Other liabilities | 124.1 | 125.7 | ||||
| 1,691.3 | 1,859.8 | |||||
| Equity | ||||||
| Share capital | 640.0 | 640.0 | ||||
| Contributed surplus | 0.9 | 0.9 | ||||
| Retained earnings | 1,115.3 | 1,107.2 | ||||
| Accumulated other comprehensive loss | (44.8 | ) | (14.8 | ) | ||
| Attributable to the shareholders of the Corporation | 1,711.4 | 1,733.3 | ||||
| Non-controlling interest | 5.4 | 5.3 | ||||
| 1,716.8 | 1,738.6 | |||||
| $ | 3,408.1 | $ | 3,598.4 | |||
CONSOLIDATED STATEMENTS OF CASH FLOWS
Unaudited
| Three months ended | ||||||
| January 24, | January 26, | |||||
| (in millions of Canadian dollars) | 2021 | 2020 | ||||
| Operating activities | ||||||
| Net earnings | $ | 27.8 | $ | 6.5 | ||
| Adjustments to reconcile net earnings and cash flows from operating activities: | ||||||
| Depreciation and amortization | 58.7 | 60.3 | ||||
| Financial expenses on long-term debt and lease liabilities | 9.5 | 14.4 | ||||
| Net losses on disposal of assets | 0.3 | 1.5 | ||||
| Net losses on business disposals | — | 4.3 | ||||
| Income taxes | 8.6 | 20.3 | ||||
| Net foreign exchange differences and other | (2.5 | ) | 1.3 | |||
| Cash flows generated by operating activities before changes in non-cash operating | ||||||
| items and income taxes paid | 102.4 | 108.6 | ||||
| Changes in non-cash operating items | (8.6 | ) | (28.6 | ) | ||
| Income taxes paid | (9.1 | ) | (16.3 | ) | ||
| Cash flows from operating activities | 84.7 | 63.7 | ||||
| Investing activities | ||||||
| Business combinations, net of acquired cash | — | (7.7 | ) | |||
| Business disposals | — | 232.1 | ||||
| Acquisitions of property, plant and equipment | (27.3 | ) | (23.1 | ) | ||
| Disposals of property, plant and equipment | 0.1 | 0.1 | ||||
| Increase in intangible assets | (4.5 | ) | (4.4 | ) | ||
| Cash flows from investing activities | (31.7 | ) | 197.0 | |||
| Financing activities | ||||||
| Reimbursement of long-term debt | (83.4 | ) | (8.3 | ) | ||
| Net increase in credit facilities | 3.4 | — | ||||
| Financial expenses paid on long-term debt | (7.6 | ) | (13.2 | ) | ||
| Repayment of principal on lease liabilities | (5.4 | ) | (5.2 | ) | ||
| Interest paid on lease liabilities | (0.9 | ) | (0.6 | ) | ||
| Exercise of stock options | — | 1.7 | ||||
| Dividends | (19.6 | ) | (19.2 | ) | ||
| Share redemptions | — | (7.1 | ) | |||
| Cash flows from financing activities | (113.5 | ) | (51.9 | ) | ||
| Effect of exchange rate changes on cash denominated in foreign currencies | 1.5 | 2.1 | ||||
| Net change in cash | (59.0 | ) | 210.9 | |||
| Cash at beginning of period | 241.0 | 213.7 | ||||
| Cash at end of period | $ | 182.0 | $ | 424.6 | ||
| Non-cash investing activities | ||||||
| Net change in capital asset acquisitions financed by accounts payable | $ | 0.5 | $ | (1.0 | ) | |
