Suncor Energy: Canadian Tire Corporation

Canadian Tire Corporation - CTC.a.t is a family of companies that includes Canadian Tire Retail, Partsource, Gas+, FGL Sports (Sport Chek, Sport Mart, Atmosphere, National Sports, Hockey Experts, S3, Nevada Bob’s Golf, Sports Experts, Intersport, The Tech Shop and Pro Hockey Life), Mark's and Canadian Tire Financial Services.

With 1,700 retail and gasoline outlets from coast-to-coast, operations are supported by over 85,000 employees across Canada.

On February 18, 2016 the company released Numbers
Driven By Focused Execution, Canadian Tire Corporation Achieves Strong Fourth Quarter and Full Year Results

Same store sales for fourth quarter:
- Canadian Tire up 2.0%
- FGL Sports down 0.4% (up 1.6% at Sport Chek)
- Mark's down 5.2%
Fourth quarter diluted earnings per share (EPS) was $3.01, up 23.3% or up 13.6% normalized
2015 annual revenue of $12.3 billion, record income before tax (IBT) of $1.0 billion and diluted EPS of $8.61

TORONTO, Feb. 18, 2016 /CNW/ - Canadian Tire Corporation, Limited (TSX:CTC, TSX:CTC.a) today released fourth quarter and full year results for the period ended January 2, 2016.

"Throughout 2015 – and exemplified this quarter – our Company is executing at a high level. We are extremely pleased with our top and bottom line results, especially in view of the deteriorating value of the Canadian dollar and the unprecedented, unseasonable weather we faced. For Canadian Tire Retail and Sport Chek to post positive comp store sales growth in this environment, while our retail division increased its gross margins, is an outstanding achievement. As well, our efforts to take costs out of our business – while at the same time making significant strides to strengthen our new world retail capabilities – is clearly evident on our bottom line," said Michael Medline, President and CEO, Canadian Tire Corporation.
CONSOLIDATED OVERVIEW
FOURTH QUARTER

Fourth quarter 2015 results include one less week of retail operations compared to prior year and should be taken into account when looking at fourth quarter results and explanations below.
Consolidated revenue was down 5.8% to $3.0 billion in the fourth quarter, excluding Petroleum.
Consolidated revenue decreased 7.5%, down $273.6 million to $3.4 billion in the fourth quarter over the same period last year primarily due to lower shipments at Canadian Tire Retail, decreased sales at FGL Sports and Mark's and reflects the impact of lower year-over-year gas prices at Petroleum.
Diluted EPS was $3.01 in the quarter, up 23.3% over the fourth quarter of 2014 and up 13.6% after normalizing for the change in fair value of the redeemable financial instrument in the prior year.

FULL YEAR

Full year 2015 results include one less week of retail operations compared to prior year and should be taken into account when looking at full year results and explanations below.
Consolidated revenue was up 1.6% for the full year, excluding Petroleum. Consolidated revenue for the full year decreased 1.5% over 2014 or down $183.3 million, which includes a $344.3 million decline in Petroleum revenue resulting from lower year-over-year gas prices.
Consolidated retail sales for 2015 were up 2.0% excluding Petroleum. Overall increased retail sales reflect higher sales at Canadian Tire and FGL Sports; partially offset by decreased sales at Mark's.
Diluted EPS for the year increased 13.5% to $8.61, or 8.4% over the prior year, after normalizing for the one-time charge associated with the early redemption of medium-term notes in Q2 2014 and the change in fair value of the redeemable financial instrument in Q4 2014. Full year results are up despite the sale of 20% of the Financial Services business in Q4 of the prior year.

RETAIL SEGMENT OVERVIEW

FOURTH QUARTER

Fourth quarter 2015 results include one less week of retail operations compared to prior year and should be taken into account when looking at fourth quarter results and explanations below. Same store sales for the quarter are reported on a comparable 13 week basis.
Retail segment income before income taxes was up 6.6%, or $15.7 million, to $250.2 million, in the fourth quarter of 2015 compared to 2014.
Canadian Tire Retail saw fourth quarter retail sales decrease 2.6% partially due to the impact of mild winter weather across the country; however, same store sales were up 2.0% over 2014.
Retail and same store sales at FGL Sports were down 5.7% and 0.4% respectively partially due to the mild weather conditions. Same store sales at Sport Chek were up 1.6%.
Retail and same store sales at Mark's decreased 10.2% and 5.2% respectively partially due to the mild weather conditions and the downturn in the Alberta economy.

FULL YEAR

Full year 2015 results include one less week of retail operations compared to prior year and should be taken into account when looking at full year results and explanations below. Same store sales for the full year are reported on a comparable 52 week basis.
Retail segment earnings before income taxes increased 13.8% by $73.4 million for the full year compared to 2014 or 10.7% after normalizing for the one-time charge associated with the early redemption of medium-term notes in the prior year.
For the full year, Canadian Tire Retail sales were up 2.4% over 2014 results and same store sales increased 3.2%.
FGL Sports' 2015 retail sales were up 2.7% and same store sales increased 4.4%. Sport Chek full year retail sales were up 5.2% and same store sales increased 6.3%.
Full year retail sales at Mark's were down 2.3% and same store sales decreased 0.5% over 2014.

____________________________________