Canadian Tire Corporation, Limited · TSX:CTC
Canadian Tire — Q4 2018 Earnings Presentation
19 slides from Canadian Tire's earnings presentation, Feb 14, 2019
Slide 1: Fourth Quarter and Full Year 2018 Financial Results
Canadian Tire Corporation Fourth Quarter and Full Year 2018 Financial Results February 14, 2019
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 Mahes Wickramasinghe, Executive Vice President and Chief Corporate Officer Greg Hicks, Pr
Slide 4: Fourth Quarter and Full Year 2018 Highlights
Fourth Quarter and Full Year 2018 Highlights STRONG Q4 AND FULL YEAR EARNINGS GROWTH COMPARABLE SALES PERFORMANCE AT FINANCIAL SERVICES • Fourth quarter consolidated revenue of • Consolidated comparable sales • Financial Services GAAR growth up $4.1 billion, up 5.5%, up 6.5% excluding up 0.8% in the
Slide 5: Normalizing Items
Normalizing Items: The table below summarizes the pre-tax amount of the previously listed normalizing items that were included in results for the year ended December 29, 2018: The results of operations include three normalizing items in the current year. These items include: • One-time costs relatin
Slide 6: Selected Normalized Metrics Consolidated
Selected Normalized Metrics Consolidated: Refer to section 7.1.1 of the Q4 2018 MD&A for a description of normalizing items. FOURTH QUARTER AND FULL YEAR 2018 FINANCIAL RESULTS | SELECTED NORMALIZED METRICS 6
Slide 7: Selected Normalized Metrics Consolidated
Selected Normalized Metrics Consolidated: 1 Selling, general and administrative expenses and Normalized EBITDA as a % of revenue were restated as a result of IFRS 15 adjustments. Refer to Note 2 of the consolidated financial statements for additional information. 2 Normalized EBITDA is a non-GAAP me
Slide 8: Consolidated Financial Results
Consolidated Financial Results In Q4, consolidated revenue increased $216.2 million, or 5.5%. Excluding Petroleum, consolidated revenue increased 6.5%. Reported diluted EPS was $3.99 in the quarter, a decrease of $0.11 per share, or 2.7%. Normalized diluted EPS in the quarter was $4.78, an increase
Slide 9: Selected Normalized Metrics Retail
Selected Normalized Metrics Retail: 1 Refer to section 7.1.1 of the Q4 2018 MD&A for a description of normalizing items. FOURTH QUARTER AND FULL YEAR 2018 FINANCIAL RESULTS | SELECTED NORMALIZED METRICS 9
Slide 10: Retail Segment Results
Retail Segment Results 1 Revenue, gross margin and selling, general and administrative expenses were restated as a result of IFRS 15 adjustments. Refer to Note 2 of the consolidated financial statements for additional information. 2 Key operating performance measures. Refer to section 11.3.1 of the
Slide 11: CT REIT Segment Results
CT REIT Segment Results In Q4 income before income taxes decreased by $22.6 million, or 23.3%, primarily due a decrease in the fair value gain on investment properties and an increase in interest expense, partially offset by an increase in earnings attributable to the income generated from propertie
Slide 12: Selected Normalized Metrics Financial Services
Selected Normalized Metrics Financial Services: 1 Refer to section 7.1.1 of the Q4 2018 MD&A for a description of normalizing items. Normalization impacts full year figures only. FOURTH QUARTER AND FULL YEAR 2018 FINANCIAL RESULTS | SELECTED NORMALIZED METRICS 12
Slide 13: Financial Services Segment Results
Financial Services Segment Results 1 Not meaningful. Income before income taxes increased $2.6 million, or 2.8%, primarily driven by strong revenue growth due to GAAR growth of 11.6%, partially offset by increased incremental credit card allowance which was impacted by the adoption of IFRS 9. The co
Slide 14: Appendix: Normalized EBITDA and EBITDA
Appendix Normalized EBITDA and EBITDA 1 Relates to the fair value adjustment to Helly Hansen’s inventory recorded as part of the acquisition on July 3, 2018. 2 Includes $1.4 million reported in cost of producing revenue in the quarter (2017 - $1.8 million) and $6.2 million in 2018 (2017 - $6.8 milli
Slide 15: Appendix (cont'd): Retail Segment normalized EBITDA and EBITDA
Appendix (cont'd) Retail Segment normalized EBITDA and EBITDA 1 Relates to the fair value adjustment to Helly Hansen’s inventory recorded as part of the acquisition on July 3, 2018. 2 Includes $1.4 million reported in cost of producing revenue in the quarter (2017 - $1.8 million) and $6.2 million in
Slide 16: Reconciliation of Helly Hansen's EBITDA to Net Income
Appendix (cont'd) Reconciliation of Helly Hansen’s EBITDA to Net Income The following table above reconciles Helly Hansen’s EBITDA to net income which is a GAAP measure reported in Note 36 in the consolidated financial statements for the period ended December 29, 2018. FOURTH QUARTER AND FULL YEAR 2
Slide 17: Consolidated and Retail Revenue Excluding Petroleum Revenue
Appendix (cont'd) Consolidated and Retail Revenue Excluding Petroleum Revenue Consolidated Revenue excluding Petroleum Revenue (C$ in millions) Q4 2018 Q4 2017 1 Change 2018 2017 1 Change Revenue $ 4,131.7 $ 3,915.5 5.5% $ 14,058.7 $ 13,276.7 5.9% Petroleum Revenue 468.6 477.6 (1.9)% 2,016.5 1,820.2
Slide 18: For more information
For more information: http://investors.canadiantire.ca FOURTH QUARTER AND FULL YEAR 2018 FINANCIAL RESULTS | CONTACT US 18
Slide 19: Thank You
Thank You