Canadian Tire Corporation, Limited · TSX:CTC
Canadian Tire — Q3 2024 Earnings Presentation
23 slides from Canadian Tire's earnings presentation, Nov 7, 2024
Slide 1: Canadian Tire Corporation Q3 2024 Financial Results and Segment Eliminations
Canadian Tire Corporation Q3 2024 Financial Results and Segment Eliminations
Slide 2: Forward Looking Information
Forward Looking Information This document contains information that may constitute forward-looking information reflecting Management’s current expectations relating to matters such as future financial performance and operating results of the Company. Forward- looking information provides insights re
Slide 3: Executive Participants
Executive Participants Greg Hicks President & Chief Executive Officer, Canadian Tire Corporation Gregory Craig Executive Vice President & Chief Financial Officer, Canadian Tire Corporation TJ Flood Executive Vice President & President, Canadian Tire Retail THIRD QUARTER 2024 | EXECUTIVE PARTICIPANTS
Slide 4: Table of Contents
Table of Contents Topic Slide Number Q3 2024 HIGHLIGHTS 5 Q3 AND YTD 2023 TO 2024 DILUTED EARNINGS PER SHARE (EPS) BRIDGE AND KEY IMPACTS 9 Q3 2024 FINANCIAL RESULTS 12 Q3 2024 SEGMENT ELIMINATIONS 20 THIRD QUARTER 2024 | TABLE OF CONTENTS 4
Slide 5: Q3 2024 Highlights
Q3 2024 HIGHLIGHTS THIRD QUARTER 2024 | HIGHLIGHTS 5
Slide 6: Q3 2024 Highlights
Q3 2024 Highlights • Consolidated comparable sales1 were down 1.5%; SportChek grew for the first quarter since Q2 2023, which partially offset declines at Canadian Tire Retail (CTR) and Mark’s. • CTR comparable sales were down 2.2%, compared to Q3 2023. Customers continued to prioritize essential ca
Slide 7: Q3 2024 Highlights
Q3 2024 Highlights • Improved retail profitability led to higher Consolidated Income Before Income Taxes (IBT) at $299.3 million, an increase of $230.0 million and $33.0 million on a normalized basis1 compared to the prior year. • Retail IBT was $164.8 million, down $74.2 million and up $56.8 millio
Slide 8: Q3 2024 Highlights
Q3 2024 Highlights • CTC continues to make solid progress on the key areas within its Better Connected strategy to enhance the customer experience and drive efficiencies, with almost $1.7 billion in capital invested since 2022. Accomplishments in the third quarter included: • A richer in-store and d
Slide 9: Q3 and YTD 2023 to 2024 Diluted EPS Bridge and Key Impacts
Q3 and YTD 2023 to 2024 Diluted EPS Bridge and Key Impacts THIRD QUARTER 2024 | EPS BRIDGE 9
Slide 10: Q3: 2023 to 2024 Diluted EPS Bridge and Key Impacts
Q3: 2023 to 2024 Diluted EPS Bridge and Key Impacts Q3 2024 Diluted EPS up 63 cents to $3.59, of which 22 cents is primarily attributable to lower non-controlling interests Q3 2023 Normalizing items: +$0.63 1 (+) Change in fair value of redeemable financial instrument: $328.0M (equivalent 0.41 . to
Slide 11: Q3 YTD: 2023 to 2024 Diluted EPS Bridge and Key Impacts
Q3 YTD: 2023 to 2024 Diluted EPS Bridge and Key Impacts Q3 YTD 2023 Normalizing items1: Q3 YTD 2024 Diluted EPS up $1.54 to $8.54, of which 94 cents is primarily attributable to lower non-controlling interests (+) Change in fair value of redeemable financial instrument: $328.0M (equivalent to +$1.54
Slide 12: Q3 Financial Results
Q3 FINANCIAL RESULTS THIRD QUARTER 2024 | CONSOLIDATED RESULTS 12
Slide 13: Consolidated Financial Results
Q3 2024 Consolidated Financial Results YTD YTD (C$ in millions, except where noted) Q3 2024 Q3 2023 Change Q3 2024 Q3 2023 Change Retail sales1 $ 4,539.5 $ 4,639.3 (2.2) % $ 12,797.2 $ 13,180.7 (2.9) % Revenue $ 4,192.9 $ 4,250.5 (1.4) % $ 11,850.5 $ 12,213.5 (3.0) % Gross margin dollars $ 1,431.6 $
Slide 14: Normalizing Items
Q3 2024 Normalizing Items • There were no normalizing items in the first three quarters of 2024. In the first three quarters of 2023, the Company normalized for $11.3 million in costs and recoveries associated with a fire at its A.J. Billes Distribution Centre (DC fire), $33.3 million related to the
Slide 15: Selected Normalized Metrics – Consolidated
Q3 2024 Selected Normalized Metrics – Consolidated (C$ in millions, except Normalizing Normalized Normalizing Normalized where noted) Q3 2024 Items1 Q3 20242 Q3 2023 Items1 Q3 20232 Change3 Revenue $ 4,192.9 $ — $ 4,192.9 $ 4,250.5 $ — $ 4,250.5 (1.4) % Cost of producing revenue 2,761.3 — 2,761.3 2,
Slide 16: Retail Segment Financial Results
Q3 2024 Retail Segment Financial Results YTD YTD (C$ in millions, except where noted) Q3 2024 Q3 2023 Change Q3 2024 Q3 2023 Change Retail sales1 $ 4,539.5 $ 4,639.3 (2.2) % $ 12,797.2 $ 13,180.7 (2.9) % Revenue $ 3,797.8 $ 3,867.3 (1.8) % $ 10,689.2 $ 11,101.3 (3.7) % Gross margin dollars $ 1,214.8
Slide 17: Selected Normalized Metrics: Retail
Q3 2024 Selected Normalized Metrics: Retail (C$ in millions, except Normalizing Normalized Normalizing Normalized where noted) Q3 2024 Items1 Q3 20242 Q3 2023 Items 1 Q3 20232 Change3 Revenue $ 3,797.8 $ — $ 3,797.8 $ 3,867.3 $ — $ 3,867.3 (1.8) % Cost of producing revenue 2,583.0 — 2,583.0 2,660.3
Slide 18: Financial Services Results
Q3 2024 Financial Services Results YTD YTD (C$ in millions) Q3 2024 Q3 2023 Change Q3 2024 Q3 2023 Change Revenue $ 399.1 $ 393.1 1.5 % $ 1,171.3 $ 1,127.4 3.9 % Gross margin dollars $ 197.7 $ 210.9 (6.3) % $ 566.5 $ 601.7 (5.8) % Gross margin rate1 49.5 % 53.7 % (412) bps 48.4 % 53.4 % (500) bps Ot
Slide 19: Selected Normalized Metrics: Financial Services
Q3 2024 Selected Normalized Metrics: Financial Services Normalized Normalized (C$ in millions, except YTD Q3 Normalizing YTD Q3 YTD Q3 Normalizing YTD Q3 where noted) 2024 Items1 2024 2 2023 Items 1 20232 Change3 Revenue $ 1,171.3 $ — $ 1,171.3 $ 1,127.4 $ — $ 1,127.4 3.9 % Gross margin dollars 566.
Slide 20: Segment Eliminations
Q3 2024 SEGMENT ELIMINATIONS THIRD QUARTER 2024 | SEGMENT ELIMINATIONS 20
Slide 21: Segment Reporting Note Disclosure
Q3 2024 Segment Reporting Note Disclosure THIRD QUARTER 2024 | SEGMENT ELIMINATIONS 21 1 CT REIT revenue is comprised of $109.3 million of base rent and $35.3 million in expense and capital recoveries and other revenue. The property revenue attributable to CTC is $129.7 million. 2 This measure is a
Slide 22: YTD Segment Reporting Note Disclosure
Q3 2024 YTD Segment Reporting Note Disclosure THIRD QUARTER 2024 | SEGMENT ELIMINATIONS 22 1 CT REIT revenue is comprised of $326.1 million of base rent and $107.2 million in expense and capital recoveries and other revenue. The property revenue attributable to CTC is $387.4 million. 2 This measure
Slide 23: Thank You
Thank You For more information: http://investors.canadiantire.ca 23