Canadian Tire Corporation, Limited · TSX:CTC
Canadian Tire — Q3 2010 Earnings Presentation
17 slides from Canadian Tire's earnings presentation, Nov 11, 2010
Slide 1: 2010 Third Quarter Financial Results
2010 Third Quarter Financial Results November 11, 2010
Slide 2: Forward-looking Information
Forward-looking Information This document contains forward-looking information that reflects management’s current expectations related to matters such as future financial performance and operating results of the Company. Forward-looking statements are provided for the purposes of providing informati
Slide 3: Forward-looking Information Continued
Forward-looking Information Continued For more information on the risks, uncertainties and assumptions that could cause the Company's actual results to differ from current expectations, please refer to the “Risk Factors” section of our Annual Information Form for fiscal 2009 and our 2009 Management'
Slide 4: Stephen Wetmore, President and CEO
Stephen Wetmore President and CEO 4
Slide 5: Q3 Performance Highlights
Q3 Performance Highlights Pleased with performance of the Company in Q3 – CTR retail sales up 2%; same store sales up 1.4% – Mark’s retail sales up 4.5%; same store sales up 2.8% – Petroleum retail sales up approx 4% – Financial Services strong performance returned earlier than anticipated Earni
Slide 6: CTR Business Highlights
CTR Business Highlights Strong performance of traffic-driving and high-growth categories led by backyard, exercise and kitchen Continued conversion of older format stores to Smart store concept – Over 100 smart stores by year-end – Delivering positive sales results and stores very well received
Slide 7: Automotive Business Highlights
Automotive Business Highlights Improvements in Automotive category underway – Identified areas to address and initiated work required to achieve goal of improving Automotive business – CSI results showing early signs of improvement in Automotive – specifically overall satisfaction and likelihood t
Slide 8: Mark's Business Highlights
Mark’s Business Highlights Retail sales increase tied to employment recovery in the industrial segment – specifically industrial footwear New concept test underway - rebranding 27 “Work Wearhouse” stores to new “Mark’s” brand in Ottawa, Winnipeg and Edmonton – Positive customer response to chang
Slide 9: Financial Services Business Highlights
Financial Services Business Highlights Financial Services continues to exceed performance expectations – Returned to the historical range of return on receivables of 4.5% to 5%, on a rolling 12 month basis Recent trends in unemployment rate and improved level of consumer confidence have been pos
Slide 10: Strategic Update
Strategic Update Cash flow remains strong and overall performance of the company has weathered tighter consumer spending Quarterly dividend increased 31% from 21 cents to 27.5 cents per share Strong liquidity going into 2011 even with the additional repayment of $300 million of debt this quart
Slide 11: Marco Marrone, Chief Financial Officer
Marco Marrone Chief Financial Officer & Executive V.P., Finance 11
Slide 12: Consolidated Highlights
Consolidated Highlights ($ in millions except per share amounts) Q3 10 Q3 09 Change Retail sales 2,511.9 2,449.0 2.6% Gross operating revenue 2,201.0 2,165.9 1.6% Operating EBITDA 258.6 228.3 13.3% Earnings before income taxes 143.4 119.1 20.6% Net earnings 103.2 85.4 21.0% Adjusted earnings after i
Slide 13: Cash Position and CAPEX
Cash Position and CAPEX Cash and Cash Equivalents $456.5 million vs. $961.6 million in Q3 2009 due to: – Decrease in cash generated by financing activities – $300 million medium term note matured in Q3 and not refinanced Alternative financing sources available – $1.17 billion in committed bank l
Slide 14: Financial Ratios
Financial Ratios As at As at October 2, 2010 October 3, 2009 Long-term debt (including current portion of LTD and long-term deposits) $2.42 billion $2.89 billion Book value per share $48.25 $44.33 Retail return on invested capital (on a rolling 12- month basis)1 7.9% 9.0% For the 13 weeks ended For
Slide 15: Financial Summary
Financial Summary CTR – Retail sales grew 2% over the third quarter of 2009 – Adjusted earnings before income taxes grew 12.1% due to improved product margins and lower net interest expense Mark’s – Retail sales grew 4.5% over the previous year – Q3 loss before taxes improved by $700,000 or 18.7
Slide 16: Other Items
Other Items Other Q3 2010 effective tax rate 28.0% compared to 28.2% in Q3 2009 Exposure to fluctuations in the Canadian dollar/U.S. dollar exchange rate managed through comprehensive hedging program Quarterly dividends to be paid in 2011 will increase to 27.5 cents per share Expect Financia
Slide 17: Questions and Answers
a Questions and Answers 17