Canadian Tire Corporation, Limited · TSX:CTC
Canadian Tire — Q3 2017 Earnings Presentation
14 slides from Canadian Tire's earnings presentation, Nov 9, 2017
Slide 1: Canadian Tire Corporation Third Quarter Financial Results
Canadian Tire Corporation Third Quarter Financial Results| November 9th, 2017
Slide 2: Forward Looking Information
Forward Looking Information This document contains forward-looking statements that reflect management’s current expectations related to matters such as future financial performance and operating results of the Company. Forward-looking statements provide information about Management’s current expecta
Slide 3: Executive Participants
Executive Participants Stephen Wetmore, President and CEO, Canadian Tire Corporation Dean McCann, Executive Vice President and Chief Financial Officer Allan MacDonald, Executive Vice President, Retail Duncan Fulton, President, FGL Sports Gregory Craig, President and CEO, CTFS and CT Bank
Slide 4: Third Quarter Highlights
Third Quarter Highlights STRONG THIRD QUARTER RESULTS THIRD QUARTER SAME STORE SALES SOLID THIRD QUARTER PERFORMANCE CONTINUE TO DEMONSTRATE OUR AT FINANCIAL SERVICES OPERATIONAL STRENGTHS • Consolidated revenue, excluding • Consolidated up 3.9% • Gross average credit card receivable Petroleum, incr
Slide 5: Consolidated Financial Results
Consolidated Financial Results Third quarter earnings performance reflects increased revenue and gross margin dollars from the Retail and Financial Services segments, partially offset by higher selling, general and administrative expenses, including the cost of operating the Bolton distribution cent
Slide 6: Retail Segment Results
Retail Segment Results Solid revenue and gross margin growth across the Retail segment banners was more than offset by increased selling, general and administrative expenses, which reflected property tax refunds received in the prior year, costs relating to operating the new Bolton DC and increased
Slide 7: CT REIT Segment Results
CT REIT Segment Results Decreased income before income taxes is primarily due to a decrease of $5.1 million in the fair market value gain over the prior year and increased interest expense, partially offset by the income generated from properties acquired and intensification activities completed dur
Slide 8: Financial Services Segment Results
Financial Services Segment Results Higher income before income taxes is primarily due to an increase in revenue, which was partially offset by an increase in the incremental allowance for future write-offs and increased selling, general and administrative expenses. GAAR increased 8.0 percent driven
Slide 9: 2017 and 2018 Forward Looking Information
2017 and 2018 Forward Looking Information 2017 Update1 20181 OPERATING CAPEX2 Low end of $400 million to $425 million range Expectation of 2018 and 2018 to 2020 three-year average annual operating CAPEX within the range of $450 million to $500 million DISTRIBUTION CAPEX High end of $25 million to $5
Slide 10: Financial Aspirations
Financial Aspirations THREE YEAR FINANCIAL ASPIRATIONS 2018 - 20201,2 Financial Aspirations3 Select Material Assumptions3 Consolidated Same Store Sales 3%+ Customer base will grow across all banners utilizing a One Company for One Customer strategy Growth (excluding Petroleum) (annual aspirations) E
Slide 11: Appendix: Consolidated Adjusted EBITDA and Retail EBITDA
Appendix Consolidated Adjusted EBITDA1 and Retail EBITDA1 Consolidated 1 Adjusted EBITDA YTD Q3 YTD Q3 (C$ in millions) Q3 2017 Q3 2016 2017 2016 Adjusted EBITDA1 $ 417.7 $ 402.7 $ 1,135.3 $ 1,055.2 Change in fair value of redeemable financial instrument - - - - EBITDA $ 417.7 $ 402.7 $ 1,135.3 $ 1,
Slide 12: Appendix (cont'd): Revenue Excluding Petroleum
Appendix (cont'd) Consolidated and Retail Revenue Excluding Petroleum Revenue Consolidated Revenue excluding Petroleum Revenue YTD Q3 YTD Q3 (C$ in millions) Q3 2017 Q3 2016 Change 2017 2016 Change Revenue $ 3,303.9 $ 3,128.4 5.6% $ 9,470.9 $ 9,040.0 4.8% Petroleum Revenue 477.2 429.6 11.1% 1,346.3
Slide 13: Questions and Answers
Questions and Answers For more information: http://investors.canadiantire.ca lisa.greatrix@cantire.com or (416) 480-8725 THIRD QUARTER FINANCIAL RESULTS | QUESTIONS & ANSWERS 13
Slide 14: Thank You
Thank You