Alimentation Couche-Tard Announces its Results for its First Quarter of Fiscal Year 2021
- Net earnings attributable to shareholders of the Corporation (“net earnings”) were $777.1 million or $0.70 per diluted share for the first quarter of fiscal 2021 compared with $538.8 million or $0.48 per diluted share for the first quarter of fiscal 2020. Adjusted net earnings were approximately $795.0 million1 compared with $548.0 million1 for the first quarter of fiscal 2020. Adjusted net earnings per share on a diluted basis were $0.711, representing an increase of 47.9% from $0.481 for the corresponding quarter of last year.
- Due to the ongoing restrictive social measures in the various geographies in which the Corporation operates, the COVID-19 pandemic continued to have a meaningful impact on its financial results. On merchandise sales, it benefited from consolidated trips by consumers driving larger basket size. While on the fuel side, as revenues declined from lower demand and lower fuel prices, it was compensated by strong fuel margins.
- Total merchandise and service revenues of $3.9 billion, an increase of 7.0%. Same-store merchandise revenues increased 7.7% in the U.S., 3.4% in Europe, and 19.9% in Canada.
- Merchandise and service gross margin increased 0.7% in the U.S. to 34.7%, while it decreased 0.9% in Europe to 40.6% and 1.2% in Canada to 31.7%, both negatively impacted by product mix.
- Same-store road transportation fuel volume decreased 21.2% in the U.S., 12.4% in Europe, and 25.6% in Canada.
- Road transportation fuel gross margin increased by 16.13¢ per gallon in the U.S. to 42.99¢ per gallon, by US 2.07¢ per liter in Europe to US 10.51¢ per liter, and by CA 2.89¢ per liter in Canada to CA 10.29¢ per liter.
- Normalized operating, selling, general and administrative expenses declined by 0.3% as rigorous cost control compensated for the additional COVID-19 related expenses.
- The Corporation’s cash position is stronger than ever, with access to approximately $5.8 billion through its available cash and revolving unsecured operating credit facility. Its leverage ratio2 stood at 1.26 : 1, on a pro forma basis.
- Return on capital employed2 stood at 16.4%, on a pro forma basis.
Sept. 1, 2020 /CNW Telbec/ – For its first quarter ended July 19, 2020, Alimentation Couche-Tard Inc. (“Couche-Tard” or the “Corporation”) (TSX: ATD.A) (TSX: ATD.B) announces net earnings attributable to shareholders of the Corporation of $777.1 million, representing $0.70 per share on a diluted basis. The results for the first quarter of fiscal 2021 were affected by a pre-tax net foreign exchange loss of $18.4 million, as well as pre-tax acquisition costs of $3.9 million. The results for the comparable quarter of fiscal 2020 were affected by a pre-tax net foreign exchange loss of $6.5 million, an income tax expense of $4.5 million (of which $3.5 million is attributable to shareholders of the Corporation) following the first tranche of the December 2018 asset exchange agreement with CAPL, as well as pre-tax acquisition costs of $0.2 million. Excluding these items, the adjusted net earnings were approximately $795.0 million1 or $0.711 per share on a diluted basis for the first quarter of fiscal 2021, compared with $548.0 million1 or $0.481 per share on a diluted basis for the first quarter of fiscal 2020, an increase of 47.9% in the adjusted net earnings per share on a diluted basis, driven by strong growth in merchandise and service and in road transportation fuel gross profit, as well as by good cost control. All financial information presented is in US dollars unless stated otherwise.
Canada, and 3.4% in Europe. This growth was due to the gradual reopening of the economies, and to continued strength in the average basket size driven by customer trip consolidation as customers relied more on the proximity and ease of shopping in our locations. Fuel margins remained healthy across the network, and fuel volumes have shown steady improvement since dropping to their low point in spring, especially in Europe where societies have returned to more normal behaviors,” said Brian Hannasch, President and CEO of Alimentation Couche-Tard.
Brian Hannasch.
Claude Tessier, Chief Financial Officer said, “We delivered another solid quarter in the face of a challenging and unprecedented macroeconomic environment caused by the COVID-19 pandemic. Our first quarter performance once again demonstrated the resilience of our agile business model, both from a financial and an operational standpoint. Throughout the quarter, we remained focused on maximizing cash flows, by containing costs and reducing non-critical capital expenditures to best navigate the turbulence and emerge from the crisis in a position of strength. I am especially proud of our teams’ execution, as we generated record free cash flow and exited the quarter with a healthy leverage ratio and liquidity of nearly $5.8 billion through our available cash and undrawn operating credit facility. We stand ready to invest once again in our operations in support of our five-year growth plan, as the various economies in which we operate gradually ramp-up.”
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____________________________ |
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1 |
Please refer to the section “Net earnings attributable to shareholders of the Corporation (“net earnings”) and adjusted net earnings attributable to shareholders of the Corporation (“adjusted net earnings”)” of this press release for additional information on this performance measure. |
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2 |
Please refer to the section “Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2021” of this press release for additional information on these performance measures not defined by IFRS. |
The following table presents certain information regarding changes in our store network over the 12-week period ended July 19, 2020:
|
12-week period ended July 19, 2020 |
||||||||||
|
Type of site |
Company- |
CODO |
DODO |
Franchised and |
Total |
|||||
|
Number of sites, beginning of period |
9,691 |
453 |
689 |
1,291 |
12,124 |
|||||
|
Acquisitions |
1 |
— |
— |
1 |
2 |
|||||
|
Openings / constructions / additions |
16 |
— |
7 |
13 |
36 |
|||||
|
Closures / disposals / withdrawals |
(56) |
(30) |
(26) |
(62) |
(174) |
|||||
|
Store conversion |
(5) |
12 |
(8) |
1 |
— |
|||||
|
Number of sites, end of period |
9,647 |
435 |
662 |
1,244 |
11,988 |
|||||
|
Circle K branded sites under licensing agreements |
2,335 |
|||||||||
|
Total network |
14,323 |
|||||||||
|
Number of automated fuel stations included in the period-end |
||||||||||
|
figures |
983 |
— |
10 |
— |
993 |
|||||
the United States.
The following table sets forth information about exchange rates based upon closing rates expressed as US dollars per comparative currency unit:
|
12-week periods ended |
|||
|
July 19, 2020 |
July 21, 2019 |
||
|
Average for period |
|||
|
Canadian dollar |
0.7289 |
0.7517 |
|
|
Norwegian krone |
0.1027 |
0.1155 |
|
|
Swedish krone |
0.1057 |
0.1055 |
|
|
Danish krone |
0.1492 |
0.1505 |
|
|
Zloty |
0.2481 |
0.2629 |
|
|
Euro |
1.1124 |
1.1239 |
|
|
Ruble |
0.0141 |
0.0156 |
|
July 19, 2020, and July 21, 2019. CAPL refers to CrossAmerica Partners LP.
|
12-week periods ended |
||||||
|
(in millions of US dollars, unless otherwise stated) |
July 19, |
July 21, |
Variation % |
|||
|
Statement of Operations Data: |
||||||
|
Merchandise and service revenues(1): |
||||||
|
United States |
2,851.4 |
2,657.8 |
7.3 |
|||
|
Europe |
343.2 |
353.1 |
(2.8) |
|||
|
Canada |
663.2 |
575.6 |
15.2 |
|||
|
CAPL |
— |
19.8 |
(100.0) |
|||
|
Elimination of intercompany transactions with CAPL |
— |
(0.5) |
(100.0) |
|||
|
Total merchandise and service revenues |
3,857.8 |
3,605.8 |
7.0 |
|||
|
Road transportation fuel revenues: |
||||||
|
United States |
3,906.0 |
6,801.5 |
(42.6) |
|||
|
Europe |
1,182.4 |
1,919.8 |
(38.4) |
|||
|
Canada |
677.0 |
1,201.4 |
(43.6) |
|||
|
CAPL |
— |
567.4 |
(100.0) |
|||
|
Elimination of intercompany transactions with CAPL |
— |
(121.4) |
(100.0) |
|||
|
Total road transportation fuel revenues |
5,765.4 |
10,368.7 |
(44.4) |
|||
|
Other revenues(2): |
||||||
|
United States |
7.5 |
6.9 |
8.7 |
|||
|
Europe |
75.2 |
155.1 |
(51.5) |
|||
|
Canada |
3.9 |
4.8 |
(18.8) |
|||
|
CAPL |
— |
25.8 |
(100.0) |
|||
|
Elimination of intercompany transactions with CAPL |
— |
(4.1) |
(100.0) |
|||
|
Total other revenues |
86.6 |
188.5 |
(54.1) |
|||
|
Total revenues |
9,709.8 |
14,163.0 |
(31.4) |
|||
|
Merchandise and service gross profit(1): |
||||||
|
United States |
988.3 |
904.9 |
9.2 |
|||
|
Europe |
139.2 |
146.5 |
(5.0) |
|||
|
Canada |
210.5 |
189.5 |
11.1 |
|||
|
CAPL |
— |
4.6 |
(100.0) |
|||
|
Elimination of intercompany transactions with CAPL |
— |
(0.5) |
(100.0) |
|||
|
Total merchandise and service gross profit |
1,338.0 |
1,245.0 |
7.5 |
|||
|
Road transportation fuel gross profit: |
||||||
|
United States |
812.5 |
672.5 |
20.8 |
|||
|
Europe |
236.5 |
222.2 |
6.4 |
|||
|
Canada |
81.7 |
81.5 |
0.2 |
|||
|
CAPL |
— |
23.1 |
(100.0) |
|||
|
Total road transportation fuel gross profit |
1,130.7 |
999.3 |
13.1 |
|||
|
Other revenues gross profit(2): |
||||||
|
United States |
7.5 |
6.9 |
8.7 |
|||
|
Europe |
30.9 |
31.3 |
(1.3) |
|||
|
Canada |
3.9 |
4.8 |
(18.8) |
|||
|
CAPL |
— |
25.8 |
(100.0) |
|||
|
Elimination of intercompany transactions with CAPL |
— |
(4.1) |
(100.0) |
|||
|
Total other revenues gross profit |
42.3 |
64.7 |
(34.6) |
|||
|
Total gross profit |
2,511.0 |
2,309.0 |
8.7 |
|||
|
Operating, selling, administrative and general expenses |
||||||
|
Excluding CAPL |
1,171.0 |
1,224.3 |
(4.4) |
|||
|
CAPL |
— |
20.2 |
(100.0) |
|||
|
Elimination of intercompany transactions with CAPL |
— |
(4.4) |
(100.0) |
|||
|
Total Operating, selling, administrative and general expenses |
1,171.0 |
1,240.1 |
(5.6) |
|||
|
(Gain) loss on disposal of property and equipment and other assets |
(8.8) |
10.1 |
(187.1) |
|||
|
Depreciation, amortization and impairment |
||||||
|
Excluding CAPL |
289.5 |
284.2 |
1.9 |
|||
|
CAPL |
— |
22.9 |
(100.0) |
|||
|
Total depreciation, amortization and impairment |
289.5 |
307.1 |
(5.7) |
|||
|
Operating income |
||||||
|
Excluding CAPL |
1,059.3 |
743.0 |
42.6 |
|||
|
CAPL |
— |
8.9 |
(100.0) |
|||
|
Elimination of intercompany transactions with CAPL |
— |
(0.2) |
(100.0) |
|||
|
Total operating income |
1,059.3 |
751.7 |
40.9 |
|||
|
Net financial expenses |
88.0 |
87.0 |
1.1 |
|||
|
Net earnings including non-controlling interests |
777.1 |
536.0 |
45.0 |
|||
|
Net loss attributable to non-controlling interests |
— |
2.8 |
(100.0) |
|||
|
Net earnings attributable to shareholders of the Corporation |
777.1 |
538.8 |
44.2 |
|||
|
Per Share Data: |
||||||
|
Basic net earnings per share (dollars per share) |
0.70 |
0.48 |
45.8 |
|||
|
Diluted net earnings per share (dollars per share) |
0.70 |
0.48 |
45.8 |
|||
|
Adjusted diluted net earnings per share (dollars per share) |
0.71 |
0.48 |
47.9 |
|||
|
12-week periods ended |
||||||
|
(in millions of US dollars, unless otherwise stated) |
July 19, |
July 21, |
Variation % |
|||
|
Other Operating Data – excluding CAPL: |
||||||
|
Merchandise and service gross margin(1): |
||||||
|
Consolidated |
34.7% |
34.6% |
0.1 |
|||
|
United States |
34.7% |
34.0% |
0.7 |
|||
|
Europe |
40.6% |
41.5% |
(0.9) |
|||
|
Canada |
31.7% |
32.9% |
(1.2) |
|||
|
Growth of same-store merchandise revenues(3): |
||||||
|
United States(4) |
7.7% |
2.5% |
||||
|
Europe |
3.4% |
0.7% |
||||
|
Canada(4) |
19.9% |
0.3% |
||||
|
Road transportation fuel gross margin: |
||||||
|
United States (cents per gallon)(4) |
42.99 |
26.86 |
60.1 |
|||
|
Europe (cents per liter) |
10.51 |
8.44 |
24.5 |
|||
|
Canada (CA cents per liter)(4) |
10.29 |
7.40 |
39.1 |
|||
|
Total volume of road transportation fuel sold: |
||||||
|
United States (millions of gallons) |
1,950.9 |
2,590.6 |
(24.7) |
|||
|
Europe (millions of liters) |
2,250.5 |
2,633.6 |
(14.5) |
|||
|
Canada (millions of liters) |
1,092.3 |
1,472.6 |
(25.8) |
|||
|
Growth of (decrease in) same-store road transportation fuel volume: |
||||||
|
United States(4) |
(21.2)% |
0.6% |
||||
|
Europe(4) |
(12.4)% |
(1.6)% |
||||
|
Canada(4) |
(25.6)% |
0.4% |
||||
|
(in millions of US dollars, unless otherwise stated) |
July 19, 2020 |
April 26, 2020 |
Variation $ |
|||
|
Balance Sheet Data: |
||||||
|
Total assets |
26,275.7 |
25,679.5 |
596.2 |
|||
|
Interest-bearing debt (5) |
9,178.0 |
10,379.3 |
(1,201.3) |
|||
|
Equity |
11,101.6 |
10,066.6 |
1,035.0 |
|||
|
Indebtedness Ratios(6): |
||||||
|
Net interest-bearing debt/total capitalization(5)(7) |
0.35 : 1 |
0.40 : 1 |
||||
|
Leverage ratio(8) |
1.26 : 1 |
1.54 : 1 |
||||
|
Returns(6): |
||||||
|
Return on equity(9) |
25.3% |
24.8% |
||||
|
Return on capital employed(10) |
16.4% |
15.0% |
|
(1) |
Includes revenues derived from franchise fees, royalties, suppliers’ rebates on some purchases made by franchisees and licensees, as well as from wholesale of merchandise. |
|
(2) |
Includes revenues from the rental of assets and from the sale of aviation fuel and energy for stationary engines. |
|
(3) |
Does not include services and other revenues (as described in footnotes 1 and 2 above). Growth in Canada and in Europe is calculated based on local currencies. |
|
(4) |
For company-operated stores only. |
|
(5) |
This measure is presented including the following balance sheet accounts: Current portion of long-term debt, Long-term debt, Current portion of lease liabilities, and Lease liabilities. |
|
(6) |
Until November 2019, these measures are presented as if our investment in CAPL was reported using the equity method as we believe it allows a more relevant presentation of the underlying performance of the Corporation. |
|
(7) |
This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by the addition of shareholders’ equity and interest-bearing debt, net of cash and cash equivalents and temporary investments. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. We believe this measure is useful to investors and analysts. |
|
(8) |
This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by EBITDA for the last 52 weeks (Earnings before Interest, Tax, Depreciation, Amortization and Impairment) adjusted for specific items. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. We believe this measure is useful to investors and analysts. |
|
(9) |
This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: net earnings for the last 52 weeks divided by average equity for the corresponding period. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. We believe this measure is useful to investors and analysts. |
|
(10) |
This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: earnings before income taxes and interests for the last 52 weeks divided by average capital employed for the corresponding period. Capital employed represents total assets less short-term liabilities not bearing interests. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. We believe this measure is useful to investors and analysts. |
$9.7 billion for the first quarter of fiscal 2021, down by $4.5 billion, a decrease of 31.4% compared with the corresponding quarter of fiscal 2020. This performance is mainly attributable to the negative impact of COVID-19 on fuel demand, to a lower average road transportation fuel selling price and to the disposal of our interests in CAPL which had an impact of approximately $487.0 million, as well as to the net negative impact from the translation of revenues of our Canadian and European operations into US dollars, which had an impact of approximately $165.0 million.
$3.9 billion, an increase of $252.0 million compared with the corresponding quarter of fiscal 2020. Excluding CAPL’s revenues, as well as the net negative impact from the translation of our Canadian and European operations into US dollars, merchandise and service revenues increased by approximately $304.0 million or 8.5%. This increase is primarily attributable to growth in basket size, which more than offset continued softness in traffic. We saw strength across many categories, especially tobacco products, alcohol, packaged beverages and various grocery items. Same-store merchandise revenues increased by 7.7% in the United States, by 3.4% in Europe, and by 19.9% in Canada.
$5.8 billion, a decrease of $4.6 billion compared with the corresponding quarter of fiscal 2020. Excluding CAPL’s revenues, as well as the net negative impact from the translation of revenues of our Canadian and European operations into US dollars, road transportation fuel revenues decreased by approximately $4.0 billion or 40.6%. This decrease is mostly attributable to the decrease on fuel demand in relation with the stay-at-home measures implemented due to the COVID-19 pandemic, as well as to a lower average road transportation fuel selling price which had a negative impact of approximately $1.8 billion. Same-store road transportation fuel volume decreased in the United States by 21.2%, in Europe by 12.4%, and in Canada by 25.6%.
The following table shows the average selling price of road transportation fuel of our company-operated stores in our various markets for the last eight quarters, starting with the second quarter of the fiscal year ended April 28, 2019:
|
Quarter |
2nd |
3rd |
4th |
1st |
Weighted |
||
|
52-week period ended July 19, 2020 |
|||||||
|
United States (US dollars per gallon) – excluding CAPL |
2.55 |
2.51 |
2.21 |
2.04 |
2.36 |
||
|
Europe (US cents per liter) |
70.86 |
73.92 |
60.95 |
56.89 |
66.83 |
||
|
Canada (CA cents per liter) |
105.14 |
103.47 |
88.78 |
86.89 |
97.79 |
||
|
52-week period ended July 21, 2019 |
|||||||
|
United States (US dollars per gallon) – excluding CAPL |
2.72 |
2.42 |
2.51 |
2.66 |
2.57 |
||
|
Europe (US cents per liter) |
80.56 |
75.28 |
74.59 |
77.35 |
76.86 |
||
|
Canada (CA cents per liter) |
115.22 |
97.59 |
103.45 |
111.16 |
106.23 |
||
$86.6 million, a decrease of $101.9 million compared with the corresponding quarter of fiscal 2020. Excluding CAPL’s revenues, as well as the net negative impact from the translation of our Canadian and European operations into US dollars, other revenues decreased by approximately $75.0 million in the first quarter of fiscal 2021, mainly driven by lower aviation fuel revenues, which had a minimal impact on gross profit.
$2.5 billion for the first quarter of fiscal 2021, up by $202.0 million, or 8.7% compared with the corresponding quarter of fiscal 2020, mainly attributable to higher road transportation fuel gross margins and organic growth, partly offset by the negative impact of COVID-19 on fuel demand, by the disposal of our interests in CAPL, which had an impact of approximately $49.0 million, and by the net negative impact from the translation of our Canadian and European operations into US dollars, which had an impact of approximately $27.0 million.
$1.3 billion, an increase of $93.0 million compared with the corresponding quarter of fiscal 2020. Excluding CAPL’s gross profit, as well as the net negative impact from the translation of our Canadian and European operations into US dollars, merchandise and service gross profit increased by approximately $109.0 million or 8.8%, mainly attributable to strong organic growth, despite lower traffic in our network due to COVID-19. Our gross margin increased by 0.7% in the United States to 34.7%, mainly due to strong service revenues, and to an accelerated recognition of deferred credits. Excluding this accelerated recognition, our gross margin would have been stable compared to the corresponding quarter of last year. In Europe and in Canada, the gross margin decreased by 0.9% to 40.6%, and by 1.2% to 31.7%, respectively, both negatively impacted by a shift in product mix towards lower margin categories.
$1.1 billion, an increase of $131.4 million compared with the corresponding quarter of fiscal 2020. Excluding CAPL’s gross profit, as well as the net negative impact from the translation of our Canadian and European operations into US dollars, our first quarter road transportation fuel gross profit increased by approximately $168.0 million or 17.2%. Our road transportation fuel gross margin was strong at 42.99¢ per gallon in the United States, an increase of 16.13¢ per gallon, mainly driven by a decline in fuel products costs. In Europe, road transportation fuel margin was US 10.51¢ per liter, an increase of US 2.07¢ per liter, and in Canada, it was CA 10.29¢ per liter, an increase of CA 2.89¢ per liter, driven by changes in the competitive landscape and improved supply conditions.
the United States and the impact of expenses related to electronic payment modes for the last eight quarters, starting with the second quarter of the fiscal year ended April 28, 2019, were as follows:
|
(US cents per gallon) |
||||||
|
Quarter |
2nd |
3rd |
4th |
1st |
Weighted |
|
|
52-week period ended July 19, 2020 |
||||||
|
Before deduction of expenses related to electronic payment modes |
28.29 |
27.04 |
46.88 |
42.99 |
34.72 |
|
|
Expenses related to electronic payment modes |
4.63 |
4.54 |
4.97 |
4.88 |
4.72 |
|
|
After deduction of expenses related to electronic payment modes |
23.66 |
22.50 |
41.91 |
38.11 |
30.00 |
|
|
52-week period ended July 21, 2019 |
||||||
|
Before deduction of expenses related to electronic payment modes |
21.88 |
29.42 |
18.51 |
26.86 |
24.53 |
|
|
Expenses related to electronic payment modes |
4.55 |
4.31 |
4.40 |
4.70 |
4.48 |
|
|
After deduction of expenses related to electronic payment modes |
17.33 |
25.11 |
14.11 |
22.16 |
20.05 |
Europe and Canada are similar, while the margin volatility and expenses related to electronic payment modes are not as significant.
$42.3 million, a decrease of $22.4 million compared with the corresponding quarter of fiscal 2020. Excluding CAPL’s gross profit, as well as the net negative impact from the translation of our Canadian and European operations into US dollars, other revenues gross profit increased by approximately $1.0 million in the first quarter of fiscal 2021.
For the first quarter of fiscal 2021, expenses decreased by 5.6%, compared with the corresponding quarter of fiscal 2020. If we exclude certain items that are not considered indicative of future trends, expenses decreased by 0.3%.
|
12-week period ended |
||
|
Total variance, as reported |
(5.6%) |
|
|
Adjusted for: |
||
|
Decrease from lower electronic payment fees, excluding acquisitions |
2.4% |
|
|
Decrease from the disposal of our interests in CAPL |
1.6% |
|
|
Decrease from the net impact of foreign exchange translation |
1.2% |
|
|
Impact from the December 2018 asset exchange agreement with CAPL, net of electronic payment fees |
0.6% |
|
|
Acquisition costs recognized to earnings of fiscal 2021 |
(0.3%) |
|
|
Increase from incremental expenses related to acquisitions |
(0.2%) |
|
|
Remaining variance |
(0.3%) |
$2.50 per hour in North America for hourly store employees and distribution center employees, Thank you bonuses in North America following the end of the appreciation pay premium, additional cleaning and sanitizing supplies, as well as masks and gloves for our employees. We continue to rigorously focus on controlling costs throughout our organization, while ensuring we maintain the quality of service we offer to our customers.
$1.1 billion to $1.4 billion, an increase of 27.4% compared with the same quarter last year. Excluding the specific items shown in the table below, the adjusted EBITDA for the first quarter of fiscal 2021 increased by $320.4 million or 30.8% compared with the corresponding period of the previous fiscal year, mainly from higher road transportation fuel gross margins and organic growth, partly offset by the negative impact of COVID-19 on our traffic, as well as from the net negative impact from the translation of our Canadian and European operations into US dollars. The variation in exchange rates had a net negative impact of approximately $12.0 million.
It should be noted that EBITDA and adjusted EBITDA are not performance measures defined by IFRS, but we, as well as investors and analysts, consider that those performance measures facilitate the evaluation of our ongoing operations and our ability to generate cash flows to fund our cash requirements, including our capital expenditures program and payment of dividends. Note that our definition of these measures may differ from the one used by other public corporations.
|
12-week periods ended |
||||
|
(in millions of US dollars) |
July 19, 2020 |
July 21, 2019 |
||
|
Net earnings including non-controlling interests, as reported |
777.1 |
536.0 |
||
|
Add: |
||||
|
Income taxes |
202.7 |
135.3 |
||
|
Net financial expenses |
88.0 |
87.0 |
||
|
Depreciation, amortization and impairment |
289.5 |
307.1 |
||
|
EBITDA |
1,357.3 |
1,065.4 |
||
|
Adjusted for: |
||||
|
Acquisition costs |
3.9 |
0.2 |
||
|
EBITDA attributable to non-controlling interests |
— |
(24.8) |
||
|
Adjusted EBITDA |
1,361.2 |
1,040.8 |
||
$17.6 million. Excluding CAPL’s results, as well as the net positive impact from the translation of our Canadian and European operations into US dollars, the depreciation expense increased by approximately $10.0 million for the first quarter of fiscal 2021. This increase is mainly driven by the replacement of equipment and the ongoing improvement of our network.
$88.0 million, an increase of $1.0 million compared with the first quarter of fiscal 2020. Excluding the items shown in the table below, net financial expenses increased by $0.4 million.
|
12-week periods ended |
||||
|
(in millions of US dollars) |
July 19, 2020 |
July 21, 2019 |
||
|
Net financial expenses, as reported |
88.0 |
87.0 |
||
|
Adjusted for: |
||||
|
Net foreign exchange loss |
(18.4) |
(6.5) |
||
|
CAPL’s financial expenses |
— |
(11.3) |
||
|
Net financial expenses excluding items above |
69.6 |
69.2 |
||
$4.5 million from the re-evaluation of the deferred tax assets and liabilities following the first tranche of the December 2018 asset exchange agreement with CAPL. The increase in the income tax rate, excluding the item shown in the table below, is stemming from the impact of a different mix in our earnings across the various jurisdictions in which we operate.
|
12-week periods ended |
||||
|
July 19, 2020 |
July 21, 2019 |
|||
|
Income tax rate, as reported |
20.7% |
20.2% |
||
|
Adjusted for: |
||||
|
Income tax expense following the first tranche of the December 2018 asset exchange agreement with CAPL |
— |
(0.7)% |
||
|
Income tax rate excluding the item above |
20.7% |
19.5% |
||
$777.1 million, compared with $538.8 million for the first quarter of the previous fiscal year, an increase of $238.3 million or 44.2%. Diluted net earnings per share stood at $0.70, compared with $0.48 for the corresponding quarter of the previous fiscal year. The translation of revenues and expenses from our Canadian and European operations into US dollars had a net negative impact of approximately $8.0 million on net earnings of the first quarter of fiscal 2021.
$795.0 million, compared with $548.0 million for the first quarter of fiscal 2020, an increase of $247.0 million or 45.1%. Adjusted diluted net earnings per share were $0.71 for the first quarter of fiscal 2021 compared with $0.48 for the corresponding period of fiscal 2020, an increase of 47.9%.
The table below reconciles reported net earnings to adjusted net earnings:
|
12-week periods ended |
||||
|
(in millions of US dollars) |
July 19, 2020 |
July 21, 2019 |
||
|
Net earnings attributable to shareholders of the Corporation, as reported |
777.1 |
538.8 |
||
|
Adjusted for: |
||||
|
Net foreign exchange loss |
18.4 |
6.5 |
||
|
Acquisition costs |
3.9 |
0.2 |
||
|
Income tax expense following the first tranche of the December 2018 asset exchange agreement with CAPL |
— |
3.5 |
||
|
Tax impact of the items above and rounding |
(4.4) |
(1.0) |
||
|
Adjusted net earnings attributable to shareholders of the Corporation |
795.0 |
548.0 |
||
It should be noted that adjusted net earnings and adjusted diluted net earnings are not performance measures defined by IFRS, but we, as well as investors and analysts, consider these measures useful for evaluating the underlying performance of our operations on a comparable basis. Note that our definition of these measures may differ from the one used by other public corporations.
Canada).
the United States, it is the largest independent convenience store operator in terms of the number of company-operated stores. In Europe, Couche-Tard is a leader in convenience store and road transportation fuel retail in the Scandinavian countries (Norway, Sweden and Denmark), in the Baltic countries (Estonia, Latvia and Lithuania), as well as in Ireland, and has an important presence in Poland.
North America, including 8,088 stores with road transportation fuel dispensing. Its North American network consists of 18 business units, including 14 in the United States covering 47 states and 4 in Canada covering all 10 provinces. Approximately 109,000 people are employed throughout its network and at its service offices in North America.
Europe, Couche-Tard operates a broad retail network across Scandinavia, Ireland, Poland, the Baltics and Russia through 10 business units. As of July 19, 2020, Couche-Tard’s network comprised 2,714 stores, the majority of which offer road transportation fuel and convenience products while the others are unmanned automated fuel stations which only offer road transportation fuel. Couche-Tard also offers other products, including aviation fuel and energy for stationary engines. Including employees at branded franchise stores, approximately 22,000 people work in its retail network, terminals and service offices across Europe.
Cambodia, Egypt, Guam, Guatemala, Honduras, Hong Kong, Indonesia, Jamaica, Macau, Mexico, Mongolia, New Zealand, Saudi Arabia, the United Arab Emirates and Vietnam), which brings the worldwide total network to close to 14,350 stores.
https://corpo.couche-tard.com.” data-reactid=”137″>For more information on Alimentation Couche-Tard Inc. or to consult its Unaudited Interim Condensed Consolidated Financial Statements and Management Discussion and Analysis, please visit: https://corpo.couche-tard.com.
Canada and the United States. Unless otherwise required by applicable securities laws, Couche-Tard disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking information in this release is based on information available as of the date of the release.
September 2, 2020, at 8:00 A.M. (EDT)
[email protected].” data-reactid=”140″>Couche-Tard invites analysts known to the Corporation to send their two questions to its management before 7:00 P.M. (EDT) on September 1, 2020, at [email protected].
https://corpo.couche-tard.com and by clicking in the "Investor Relations/Corporate presentations" section or by dialing 1-866-865-3087 or 1-647-427-7450, followed by the access code 5278666#.” data-reactid=”141″>Financial analysts, investors, media and any individuals interested in listening to the webcast on Couche-Tard’s results which will take place online on September 2, 2020, at 8:00 A.M. (EDT) can do so by either accessing the Corporation’s website at https://corpo.couche-tard.com and by clicking in the “Investor Relations/Corporate presentations” section or by dialing 1-866-865-3087 or 1-647-427-7450, followed by the access code 5278666#.
http://www.prnewswire.com/news-releases/alimentation-couche-tard-announces-its-results-for-its-first-quarter-of-fiscal-year-2021-301122442.html” data-reactid=”154″>View original content to download multimedia:http://www.prnewswire.com/news-releases/alimentation-couche-tard-announces-its-results-for-its-first-quarter-of-fiscal-year-2021-301122442.html
SOURCE Alimentation Couche-Tard Inc.
http://www.newswire.ca/en/releases/archive/September2020/01/c8319.html” data-reactid=”184″>View original content to download multimedia: http://www.newswire.ca/en/releases/archive/September2020/01/c8319.html
