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Reitmans (Canada) Limited announces its results for the 13 and 39 weeks ended November 2, 2019

MONTREAL , Dec. 4, 2019 /CNW Telbec/ - The Company's operating results for the 13 weeks ended November 2, 2019 ("third quarter of 2020") and the 39 weeks ended November 2, 2019 ("year to date fiscal 2020") have not met the Company's expectations. This is primarily due to the disappointing financial performance of the Company's plus-size banners. Strategic brand changes implemented at the beginning of the fiscal year failed to resonate with the banners' customer base. Corrective measures, including new leadership of the plus-size banners, were implemented late in the third quarter of 2020 to refocus and reposition the Addition Elle and Penningtons banners, and have yet to have an impact on the operating results.

Unless otherwise indicated, the Company's results for the third quarter of 2020 and the results for the year to date fiscal 2020 reflect the impact of the implementation of IFRS 16, as described below under "Adoption of IFRS 16 – Leases".

13 weeks ended November 2, 2019

Sales for the third quarter of 2020 were $222.3 million , as compared with $239.7 million for the 13 weeks ended November 3, 2018 ("third quarter of 2019"). The decrease of $17.4 million is primarily due to lower sales in the plus-size banners, and a net reduction of 37 stores. The Company continues to execute on its plan of adapting to the new retail environment by reducing its store presence in select markets while enhancing its e-commerce capabilities. Comparable sales1, which include e-commerce sales, decreased 2.8%. The decrease was primarily due to store traffic being down 0.7%, and customers' overall transaction value being down 5.9% for the third quarter of 2020. The Company continues to experience strong growth through its online channel.

Gross profit for the third quarter of 2020 decreased $20.5 million or 15.0%, to $115.9 million as compared with $136.4 million for the third quarter of 2019, primarily attributable to lower sales and a net reduction of 37 stores. Gross profit as a percentage of sales for the third quarter of 2020 decreased to 52.1% from 56.9% for the third quarter of 2019.

Results from operating activities for the third quarter of 2020 were a loss of $19.1 million as compared with earnings of $14.1 million for the third quarter of 2019, a decrease of $33.2 million . This decrease is primarily attributable to the decrease in gross profit of $20.5 million and a goodwill impairment charge of $11.8 million related to the Addition Elle banner. Changes have been made to the leadership team and the Company is optimistic that it has the team in place to drive growth, profitability and execute on its strategy. The Company continues to believe that Addition Elle and Penningtons are premium brands with excellent digital capabilities, a strong online presence with the plus-size consumer and strategies in place with the potential to generate long-term profitable growth for the Company. Results from operating activities excluding the impairment of goodwill for the third quarter of 2020 were a loss of $7.3 million as compared with earnings of $14.1 million for the third quarter of 2019, a decrease of $21.4 million .

Net loss for the third quarter of 2020 was $23.1 million ( $0.47 basic and diluted loss per share) as compared with $8.9 million net earnings ( $0.14 basic and diluted earnings per share) for the third quarter of 2019. The unfavourable change of $32.0 million included an unfavourable impact of IFRS 16 of $0.6 million . Excluding this $0.6 million impact of IFRS 16, the deterioration in net earnings of $31.4 million is primarily attributable to lower sales, the decrease in gross profit, a goodwill impairment expense of $11.8 million and the increase in net finance costs, partially offset by an increase in income tax recovery.

Adjusted EBITDA1 for the third quarter of 2020 was $18.5 million , as compared with $22.4 million for the third quarter of 2019, a decrease of $3.9 million . The decrease in adjusted EBITDA includes a favourable impact from the adoption of IFRS 16 of $18.4 million . Excluding this $18.4 million impact of IFRS 16, adjusted EBITDA for the third quarter of 2020 was $0.1 million as compared with $22.4 million for the third quarter of 2019, a decrease of $22.3 million . The decrease is primarily attributable to the decrease in gross profit.

39 weeks ended November 2, 2019

Sales for the year to date fiscal 2020 were $640.3 million , as compared with $696.1 million for the 39 weeks ended November 3, 2018 ("year to date fiscal 2019"). The decrease of $55.8 million is primarily due to lower sales in the plus-size banners, a net reduction of 37 stores and unseasonable weather conditions that were prevalent during the earlier portion of year to date fiscal 2020. The Company continues to execute on its plan of adapting to the new retail environment by reducing its store presence in select markets while enhancing its e-commerce capabilities. Comparable sales1, which include e-commerce sales, decreased 3.3%. The decrease was primarily due to store traffic being down 3.0% for the year to date fiscal 2020. The Company continues to experience strong growth through its online channel.

Gross profit for the year to date fiscal 2020 decreased $50.0 million or 12.8%, to $340.4 million as compared with $390.4 million for the year to date fiscal 2019, primarily attributable to lower sales and a net reduction of 37 stores. Gross profit as a percentage of sales for the year to date fiscal 2020 decreased to 53.2% from 56.1% for the year to date fiscal 2019.

Results from operating activities for the year to date fiscal 2020 were a loss of $30.4 million as compared with earnings of $20.1 million for the year to date fiscal 2019, a decrease of $50.5 million . This decrease is primarily attributable to the decrease in gross profit of $50.0 million , and a goodwill impairment charge of $11.8 million, partially offset by a reduction in selling, distribution and administrative costs of $11.3 million . Results from operating activities excluding the impairment of goodwill for the year to date fiscal 2020 were a loss of $18.6 million as compared with earnings of $20.1 million for the year to date fiscal 2019, a decrease of $38.7 million .

Net loss for the year to date fiscal 2020 was $35.8 million ( $0.61 basic and diluted loss per share) as compared with $15.7 million net earnings ( $0.25 basic and diluted earnings per share) for the year to date fiscal 2019. The unfavourable change of $51.5 million included an unfavourable impact of IFRS 16 of $2.9 million . Excluding this $2.9 million impact of IFRS 16, the deterioration in net earnings of $48.6 million is primarily attributable to lower sales, the decrease in gross profit, a goodwill impairment expense of $11.8 million and the increase in net finance costs, partially offset by reduced store operating costs and an increase in income tax recovery.

Adjusted EBITDA1 for the year to date fiscal 2020 was $59.4 million , as compared with $50.7 million for the year to date fiscal 2019, an increase of $8.7 million . The increase in adjusted EBITDA includes a favourable impact of IFRS 16 of $54.7 million . Excluding this $54.7 million impact of IFRS 16, adjusted EBITDA for the year to date fiscal 2020 was $4.7 million as compared with $50.7 million for the year to date fiscal 2019, a decrease of $46.0 million . The decrease is primarily attributable to the decrease in gross profit.

Adoption of IFRS 16 - Leases

The Company adopted IFRS 16 – Leases, replacing IAS 17 – Leases and related interpretations, using the modified retrospective approach, effective for the annual reporting period beginning on February 3, 2019 . As a result, the Company's results for the third quarter of 2020 and year to date fiscal 2020 reflect lease accounting under IFRS 16. Comparative figures for the third quarter of 2019 and year to date fiscal 2019 have not been restated and continue to be reported under IAS 17 – Leases. Refer to Note 3 of the unaudited condensed consolidated interim financial statements of the Company for the third quarter of 2020 for additional details on the implementation of IFRS 16.

Dividends

At the Board of Directors meeting held on December 4, 2019 , due to the Company's current operating performance, the Board decided to suspend the quarterly cash dividend. The Company will continue to assess potential future dividend levels on a quarterly basis.

Sales for the four weeks ended November 30, 2019

Sales for the month of November (the four weeks ended November 30, 2019 ) decreased 0.2%. Comparable sales1 increased 2.2%.

About Reitmans ( Canada ) Limited

The Company is a leading ladieswear specialty apparel retailer with retail outlets throughout Canada. The Company operates 587 stores consisting of 260 Reitmans, 112 Penningtons, 79 Addition Elle, 81 RW & CO. and 55 Thyme Maternity.

1NON-GAAP FINANCIAL MEASURES

The Company has identified several key operating performance measures and non-GAAP financial measures which management believes are useful in assessing the performance of the Company; however, readers are cautioned that some of these measures may not have standardized meanings under IFRS and, therefore, may not be comparable to similar terms used by other companies.

In addition to discussing earnings in accordance with IFRS, this press announcement provides adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA") as a non-GAAP financial measure. Adjusted EBITDA is defined as net earnings before income tax expense/recovery, dividend income, interest income, net change in fair value of marketable securities, realized gains or losses on disposal of marketable securities, interest expense, impairment of goodwill, depreciation, amortization and net impairment charges. The following table reconciles the most comparable GAAP measure, net earnings or loss, to adjusted EBITDA. Management believes that adjusted EBITDA is an important indicator of the Company's ability to generate liquidity through operating cash flow to fund working capital needs and fund capital expenditures and uses the metric for this purpose. The exclusion of dividend income, interest income and expense and the net change in fair value of marketable securities eliminates the impact on earnings derived from non-operational activities. The exclusion of depreciation, amortization and impairment charges eliminates the non-cash impact. The intent of adjusted EBITDA is to provide additional useful information to investors and analysts. The measure does not have any standardized meaning under IFRS. Although depreciation, amortization and impairment charges are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, as such, adjusted EBITDA does not reflect any cash requirements for these replacements. Adjusted EBITDA should not be considered either as discretionary cash available to invest in the growth of the business or as a measure of cash that will be available to meet the Company's obligations. Other companies may calculate adjusted EBITDA differently. From time to time, the Company may exclude additional items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring. Adjusted EBITDA should not be used in substitute for measures of performance prepared in accordance with IFRS or as an alternative to net earnings, net cash provided by operating, investing or financing activities or any other financial statement data presented as indicators of financial performance or liquidity, each as presented in accordance with IFRS. Although adjusted EBITDA is frequently used by securities analysts, lenders and others in their evaluation of companies, it has limitations as an analytical tool, and should not be considered in isolation, or as a substitute for analysis of the Company's results as reported under IFRS.

The Company considers results from operating activities a useful measure of the Company's performance from its retail operations. Given that the Company has recorded a goodwill impairment in the third quarter of and year to date fiscal 2020, it has also determined that a useful measure would be results from operating activities before impairment of goodwill, as noted on pages 7 and 10 of the Management's Discussion and Analysis for the third quarter of 2020. Additionally, (loss) earnings per share excluding impairment of goodwill both on a basic and diluted basis have been presented, which removes the impact of impairment of goodwill on net (loss) earnings used for calculation purposes. Both of these supplementary measures are considered useful information and should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS.

The Company uses a key performance indicator ("KPI"), comparable sales, to assess store performance and sales growth. The Company engages in an omnichannel approach in connecting with its customers by appealing to their shopping habits through either online or store channels. This approach allows customers to shop online for home delivery, purchase in any of our store locations or ship to home from another store when the products are unavailable in a particular store. Due to customer cross-channel behaviour, the Company reports a single comparable sales metric, inclusive of store and e-commerce channels. Comparable sales are defined as sales generated by stores that have been continuously open during both of the periods being compared and include e-commerce sales. Comparable sales exclude sales from wholesale accounts. The comparable sales metric compares the same calendar days for each period. Although this KPI is expressed as a ratio, it is a non-GAAP financial measure that does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures used by other companies. Management uses comparable sales in evaluating the performance of stores and online sales and considers it useful in helping to determine what portion of new sales has come from sales growth and what portion can be attributed to the opening of new stores. Comparable sales is a measure widely used amongst retailers and is considered useful information for both investors and analysts. Comparable sales should not be considered in isolation or used in substitute for measures of performance prepared in accordance with IFRS.

The following table reconciles net (loss) earnings to adjusted EBITDA:

 





For the third quarter of

Year to date fiscal


2020

2020
Excluding
impact of
IFRS 16 (1)

2019

2020

2020

Excluding
impact of
IFRS 16 (1)

2019

Net (loss) earnings

$

(23.1)

$

(22.5)

$

8.9

$

(35.8)

$

(32.9)

$

15.7

Depreciation, amortization and net impairment losses

25.9

8.5

8.5

78.4

25.5

28.8

Dividend income

(0.1)

(0.1)

(0.5)

(1.4)

(1.4)

(1.8)

Interest income

(0.4)

(0.4)

(0.7)

(1.3)

(1.3)

(1.5)

Impairment of goodwill

11.8

11.8

-

11.8

11.8

-

Net change in fair value and loss on disposal of marketable securities

4.4

4.4

2.7

8.3

8.3

3.8

Interest expense on lease liabilities

1.8

-

-

5.7

-

-

Income tax (recovery) expense

(1.8)

(1.6)

3.5

(6.3)

(5.3)

5.7

Adjusted EBITDA

$

18.5

$

0.1

$

22.4

$

59.4

$

4.7

$

50.7

Adjusted EBITDA as % of Sales

8.3%

0.0%

9.3%

9.3%

0.7%

7.3%



1

Adjusted EBITDA for the third quarter of 2020 and year to date fiscal 2020 excluding impact of IFRS 16 assumes the Company continued to report under IAS 17 - Leases and did not adopt IFRS 16. Under IFRS 16, the nature and timing of expenses related to operating leases have changed as the straight-line operating lease expenses have been replaced with a depreciation charge for right-of-use assets and interest expense on lease liabilities. Accordingly, IFRS 16 had a favourable impact of approximately $18.4 million and $54.7 million on adjusted EBITDA for the third quarter of 2020 and for year to date fiscal 2020, respectively, as operating lease expenses have been replaced with depreciation and interest expenses, which are not included in the calculation of adjusted EBITDA.

 

FORWARD-LOOKING STATEMENTS

All of the statements contained herein, other than statements of fact that are independently verifiable at the date hereof, are forward-looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown, many of which are beyond the Company's control. Consequently, actual future results may differ materially from the anticipated results expressed in forward-looking statements, which reflect the Company's expectations only as of the date of this Press Announcement. Forward-looking statements are based upon the Company's current estimates, beliefs and assumptions, which are based on management's perception of historical trends, current conditions and currently expected future developments, as well as other factors it believes, are appropriate in the circumstances. This Press Announcement 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 Press Announcement include, but are not limited to, statements with respect to the Company's belief in its strategies and its brands and their capacity to generate long-term profitable growth, future liquidity, planned capital expenditures, amount of pension plan contributions, status and impact of systems implementation, the ability of the Company to successfully implement its strategic initiatives and cost reduction and productivity improvement initiatives as well as the impact of such initiatives. These specific forward-looking statements are contained throughout the Company's Management Discussion & Analysis ("MD&A") including those listed in the "Operating Risk Management" and "Financial Risk Management" sections of the Company's MD&A. Forward-looking statements are typically identified by words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "strive", "will", "may" and "should" and similar expressions, as they relate to the Company and its management.

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. Please refer to the "Forward-Looking Statements" section of the Company's MD&A for the third quarter of 2020.

Other risks and uncertainties not presently known to the Company or that the Company presently believes are not material could also cause actual results or events to differ materially from those expressed in its forward-looking statements. Additional risks and uncertainties are discussed in the Company's materials filed with the Canadian securities regulatory authorities from time to time. The reader should not place undue reliance on any forward-looking statements included herein. These statements speak only as of the date made and the Company is under no obligation and disavows any intention to update or revise such statements as a result of any event, circumstances or otherwise, except to the extent required under applicable securities law.

The Company's complete financial statements including notes and Management's Discussion and Analysis for the third quarter of 2020 are available online at www.sedar.com.

Montreal , December 4, 2019

Jeremy H. Reitman
Chairman and Chief Executive Officer
Telephone: (514) 385-2630
Corporate Website: www.reitmanscanadalimited.com

 

REITMANS (CANADA) LIMITED

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF EARNINGS

(Unaudited)

(in thousands of Canadian dollars except per share amounts)





For the 13 weeks ended

For the 39 weeks ended


November 2, 2019

November 3, 2018

November 2, 2019

November 3, 2018






Sales

$

222,336

$

239,713

$

640,309

$

696,131

Cost of goods sold

106,444

103,268

299,949

305,736

Gross profit

115,892

136,445

340,360

390,395

Selling and distribution expenses

111,607

111,170

324,824

336,650

Administrative expenses

11,617

11,177

34,067

33,709

Impairment of goodwill

11,843

-

11,843

-

Results from operating activities

(19,175)

14,098

(30,374)

20,036






Finance income

533

1,186

2,735

5,120

Finance costs

6,241

2,890

14,412

3,761

(Loss) earnings before income taxes

(24,883)

12,394

(42,051)

21,395






Income tax (recovery) expense

(1,786)

3,521

(6,285)

5,703






Net (loss) earnings

$

(23,097)

$

8,873

$

(35,766)

$

15,692






(Loss) earnings per share :





Basic

$

(0.47)

$

0.14

$

(0.61)

$

0.25

Diluted

(0.47)

0.14

(0.61)


0.25

 

REITMANS (CANADA) LIMITED

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(in thousands of Canadian dollars)


For the 13 weeks ended

For the 39 weeks ended


November 2, 2019

November 3, 2018

November 2, 2019

November 3, 2018






Net (loss) earnings

$

(23,097)

$

8,873

$

(35,766)

$

15,692

Other comprehensive (loss) income





Items that are or may be reclassified subsequently to net earnings:





Cash flow hedges (net of tax of $91 for the 13 weeks and $75 for the 39 weeks ended November 2, 2019; net of tax of $154 for the 13 weeks and $2,577 for the 39 weeks ended November 3, 2018)

(249)

(420)

(207)

7,021

Foreign currency translation differences

13

(40)

(35)

(270)






Total other comprehensive (loss) income

(236)

(460)

(242)

6,751






Total comprehensive (loss) income

$

(23,333)

$

8,413

$

(36,008)

$

22,443

 

REITMANS (CANADA) LIMITED

CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS

(Unaudited)

(in thousands of Canadian dollars)


November 2, 2019

November 3, 2018

February 2, 2019

ASSETS




CURRENT ASSETS




Cash and cash equivalents

$

67,346

$

124,698

$

112,518

Marketable securities

-

58,233

49,690

Trade and other receivables

7,801

6,019

7,897

Derivative financial asset

252

4,518

1,900

Inventories

175,254

149,928

146,809

Prepaid expenses

15,163

20,503

19,771

Total Current Assets

265,816

363,899

338,585





NON-CURRENT ASSETS




Property and equipment

89,463

99,219

95,921

Intangible assets

19,546

19,494

21,639

Right-of-use assets

193,797

-

-

Goodwill

-

11,843

11,843

Deferred income taxes

30,582

24,159

24,829

Total Non-Current Assets

333,388

154,715

154,232





TOTAL ASSETS

$

599,204

$

518,614

$

492,817





LIABILITIES AND SHAREHOLDERS' EQUITY




CURRENT LIABILITIES




Trade and other payables

$

111,072

$

114,410

$

98,842

Derivative financial liability

1,023

-

966

Deferred revenue

10,340

10,174

15,209

Income taxes payable

344

4,507

4,201

Current portion of lease liabilities

61,509

-

-

Total Current Liabilities

184,288

129,091

119,218





NON-CURRENT LIABILITIES




Trade and other payables

222

6,891

5,170

Deferred lease credits

-

8,069

7,789

Lease liabilities

141,704

-

-

Pension liability

21,089

19,589

21,043

Total Non-Current Liabilities

163,015

34,549

34,002





SHAREHOLDERS' EQUITY




Share capital

27,406

38,397

38,397

Contributed surplus

10,277

10,164

10,245

Retained earnings

215,744

305,243

292,239

Accumulated other comprehensive (loss) income

(1,526)

1,170

(1,284)

Total Shareholders' Equity

251,901

354,974

339,597





TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$

599,204

$

518,614

$

492,817

 

REITMANS (CANADA) LIMITED

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

(Unaudited)

(in thousands of Canadian dollars)


Share Capital

Contributed
Surplus

Retained
Earnings

Accumulated Other
Comprehensive
Income (Loss)

Total
Shareholders'
Equity













Balance as at February 3, 2019

$

38,397

$

10,245

$

292,239

$

(1,284)

$

339,597

IFRS 16 adoption adjustment (net of tax)

-

-

767

-

767

Restated balance as at February 3, 2019

38,397

10,245

293,006

(1,284)

340,364







Net loss

-

-

(35,766)

-

(35,766)

Total other comprehensive loss

-

-

-

(242)

(242)

Total comprehensive loss for the period

-

-

(35,766)

(242)

(36,008)







Share-based compensation costs

-

32

-

-

32

Dividends

-

-

(8,776)

-

(8,776)

Purchase of Class A non-voting shares pursuant to substantial issuer bid

(10,991)

-

-

-

(10,991)

Excess of purchase price of Class A non-voting shares over carrying amount

-

-

(32,720)

-

(32,720)

Total (distributions to) contributions by owners of the Company

(10,991)

32

(41,496)

-

(52,455)







Balance as at November 2, 2019

$

27,406

$

10,277

$

215,744

$

(1,526)

$

251,901













Balance as at February 4, 2018

$

38,397

$

10,119

$

297,895

$

(5,581)

$

340,830

IFRS 15 adoption adjustment (net of tax)

-

-

1,157

-

1,157

Restated balance as at February 4, 2018

38,397

10,119

299,052

(5,581)

341,987







Net earnings

-

-

15,692

-

15,692

Total other comprehensive income

-

-

-

6,751

6,751

Total comprehensive income for the period

-

-

15,692

6,751

22,443







Share-based compensation costs

-

45

-

-

45

Dividends

-

-

(9,501)

-

(9,501)

Total contributions by (distributions to) owners of the Company

-

45

(9,501)

-

(9,456)







Balance as at November 3, 2018

$

38,397

$

10,164

$

305,243

$

1,170

$

354,974

 

REITMANS (CANADA) LIMITED

CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands of Canadian dollars)

For the 13 weeks ended

For the 39 weeks ended


November 2, 2019

November 3, 2018

November 2, 2019

November 3, 2018

CASH FLOWS FROM OPERATING ACTIVITIES





Net (loss) earnings

$

(23,097)

$

8,873

$

(35,766)

$

15,692

Adjustments for:





Depreciation, amortization and net impairment losses

25,928

8,446

78,403

28,785

Impairment of goodwill

11,843

-

11,843

-

Share-based compensation (recovery) costs

(124)

31

(57)

206

Net change in fair value and loss on disposal of marketable
securities

4,409

2,696

8,264

3,761

Net change in transfer of realized loss (gain) on cash flow hedges to inventory

116

(221)

1,423

(4,628)

Foreign exchange gain

(248)

(2,723)

(4,343)

(1,048)

Interest on lease liabilities

1,832

-

5,696

-

Interest and dividend income, net

(501)

(1,186)

(2,735)

(3,290)

Income tax (recovery) expense

(1,786)

3,521

(6,285)

5,703


18,372

19,437

56,443

45,181

Changes in:





Trade and other receivables

(1,206)

269

381

(1,160)

Inventories

(9,744)

(6,784)

(28,445)

(12,823)

Prepaid expenses

1,114

16

(1,585)

(1,316)

Trade and other payables

(4,115)

7,709

14,272

19,515

Pension liability

(102)

100

45

352

Deferred lease credits

-

860

-

1,619

Deferred revenue

(2,355)

(5,702)

(4,869)

(9,820)

Cash from operating activities

1,964

15,905

36,242

41,548

Interest received

377

581

1,443

1,394

Dividends received

288

663

1,582

1,917

Income taxes received

255

30

267

2,336

Income taxes paid

(103)

-

(3,800)

(4)

Net cash flows from operating activities

2,781

17,179

35,734

47,191






CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES





Additions to property and equipment and intangible assets, net

(5,256)

(7,230)

(17,397)

(18,457)

Purchases of marketable securities

-

(7,505)

-

(7,505)

Proceeds on sale of marketable securities

41,425

7,536

41,425

7,536

Cash flows from (used in) investing activities

36,169

(7,199)

24,028

(18,426)






CASH FLOWS USED IN FINANCING ACTIVITIES





Dividends paid

(2,442)

(3,167)

(8,776)

(9,501)

Payment of lease liabilities

(18,982)

-

(56,755)

-

Purchases of Class A non-voting shares pursuant to substantial issuer bid

-

-

(43,711)

-

Cash flows used in financing activities

(21,424)

(3,167)

(109,242)

(9,501)






FOREIGN EXCHANGE GAIN ON CASH HELD IN FOREIGN CURRENCY

258

2,684

4,308

778






NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

17,784

9,497

(45,172)

20,042






CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD

49,562

115,201

112,518

104,656






CASH AND CASH EQUIVALENTS, END OF THE PERIOD

$

67,346

$

124,698

$

67,346

$

124,698

 

SOURCE Reitmans ( Canada ) Limited


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