Strong increase in first quarter net earnings for Alimentation Couche-Tard



    
    -------------------------------------------------------------------------
    - First quarter net earnings of $91.1 million, or $0.48 per share on a
      diluted basis compared to $47.2 million, or $0.24 per share on a
      diluted basis last fiscal year
    - Same-store merchandise sales increased 2.4% in the United States and
      2.6% in Canada
    - Slight decrease of 0.2% in the consolidated merchandise and service
      gross margin but an increase of 0.4% in the United States
    - Same-store motor fuel volume increased 1.6% in the United States and
      1.5% in Canada
    - 15.43 cents per gallon motor fuel gross margin in the United States and
      Cdn5.76 cents per litre in Canada
    - Excluding the impact related to the exchange rate, acquisitions and
      electronic payment fees, Operating, selling, administrative and general
      expenses are down 3.7%
    -------------------------------------------------------------------------
    TSX: ATD.A, ATD.B
    

    LAVAL, QC, Aug. 25 /CNW Telbec/ - Alimentation Couche-Tard Inc's first
quarter net earnings were positively affected by earnings stemming from sound
management by Couche-Tard of its operating expenses, acquisitions, an increase
in same-store merchandise revenues and motor fuel volume, a decrease in
expenses related to electronic payment modes created by the lower motor fuel
retail price, a decrease in financial expenses as well as a lower effective
income tax rate. These positive items were partially offset by the weakening
Canadian dollar and a slight decrease in merchandise and service consolidated
gross margin.
    "Our teams managed to find concrete and effective solutions to overcome
pitfalls we are facing, namely the recession, the important and repetitive tax
increases on tobacco products as well as the numerous minimum wage increases",
indicated Alain Bouchard, President and Chief Executive Officer. "I therefore
believe our first quarter results were satisfying. However, given the fact
that economic conditions remain difficult, we must remain prudent. I am still
not ready to say the recession is behind us", he concluded.
    Raymond Paré, Vice-President and Chief Financial Officer adds:
"Same-store motor fuel volume in the United States is growing, which is good
news considering the performance recorded in the previous quarters. I also
feel positive about the merchandise and service gross margin improvement in
the United States" he continued. "These are indicators that our operations in
the United States are progressing well. This adds to our cost reductions
initiatives which are generating interesting results in both Canada and the
United States", concluded Mr. Paré.

    
    Highlights of the First Quarter of Fiscal 2010

    Growth of the Store Network
                                      12-week period ended July 19, 2009
                              -----------------------------------------------
                              Company-operated     Affiliated
                                        stores         stores          Total
                              -----------------------------------------------
    Number of stores,
     beginning of period                 4,395          1,048          5,443

      Acquisitions                          44            444            488

      Openings /
       constructions /
       additions                             5             10             15

      Closures / withdrawals               (30)           (10)           (40)
    -------------------------------------------------------------------------
    Number of stores, end
     of period                           4,414          1,492          5,906
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Business acquisitions During the first quarter of fiscal 2010, Couche-Tard
made the following acquisitions:

    - On May 28, 2009: acquisition of 43 company-operated stores in Phoenix,
      Arizona, United States from ExxonMobil Corporation (ExxonMobil). Out of
      the 43 sites, Couche-Tard owns the land for 33 sites and 34 buildings,
      the remaining of which are operated under lease agreements. Pursuant to
      the same transaction, ExxonMobil also transferred to Couche-Tard the
      "On the Run" trademark rights in the United States as well as 444
      franchised stores operating under this trademark in the United States;
    - During the quarter, Couche-Tard also acquired one other store through a
      distinct transaction.
    

    Dividends On August 25, 2009, the Company's Board of Directors declared a
quarterly dividend of Cdn$0.035 per share for the first quarter of fiscal 2010
to shareholders on record as at September 3, 2009, and approved its payment
for September 14, 2009. This is an eligible dividend within the meaning of the
Income Tax Act of Canada.

    Share repurchase programs

    1) Program effective August 8, 2008, which expired August 7, 2009

    During the first quarter of fiscal 2010, under this program, Couche-Tard
repurchased 2,300 Class A multiple voting shares at an average cost of
Cdn$13.19 and 2,445,700 Class B subordinate voting shares at an average cost
of Cdn$13.20. On a cumulative basis since the implementation of this program,
Couche-Tard has repurchased a total of 17,600 Class A multiple voting shares
at an average cost of Cdn$13.18 and 9,929,100 Class B subordinate voting
shares at an average cost of Cdn$13.07.

    
    2) Program effective August 10, 2009, expiring at the latest on August 9,
       2010
    

    Subsequent to the end of the first quarter of fiscal 2010 - on August 10,
2009 - Couche-Tard implemented a new share repurchase program in replacement
of the program which had expired August 7, 2009. This new program allows the
Company to repurchase up to 2,685,370 of the 53,707,412 Class A multiple
voting shares and up to 12,857,284 of the 128,572,846 Class B subordinate
voting shares issued and outstanding as at July 24, 2009 (representing 5.0% of
the Class A multiple voting shares issued and outstanding and 10.0% of the
Class B subordinate voting shares of the public float, as defined by
applicable rules, as at that date, respectively). In accordance with the
Toronto Stock Exchange requirements, Couche-Tard can repurchase a daily
maximum of 1,000 Class A multiple voting shares and 107,717 Class B
subordinate voting shares. When making such repurchases, the number of Class A
multiple voting shares and of Class B subordinate voting shares in circulation
is reduced and the proportionate interest of all remaining shareholders in the
Company's share capital is increased on a pro rata basis. The share repurchase
period will end no later than August 9, 2010. All shares repurchased under the
share repurchase program are cancelled upon repurchase.
    Phantom Stock Unit Plan On May 1st, 2009, in replacement of a large
portion of the stock option plan already in place since many years,
Couche-Tard adopted a Phantom Stock Unit Plan (the "Plan") for the benefit of
its officers and key employees. The new Plan's objective is to better align
officers' and key employees' compensation with the Company's performance
against its peers. The Plan is anti-dilutive since it can only be settled in
cash. Payment to beneficiaries of the Plan is namely conditional to the
achievement by the Company of certain performance objectives compared to
certain of its competitors. Couche-Tard does not believe that the new Plan
will have a significant impact on its net earnings compared to the replaced
portion of the stock option plan.
    Moreover, in order to reduce the risk associated with fluctuations of the
fair value of the Company's shares created by the implementation of the new
Plan, Couche-Tard entered into a financial agreement with a bank which
includes a derivative instrument.
    For more details on the new Plan and the financial agreement, please
refer to Note 6 of Couche-Tard's first quarter of fiscal 2010 consolidated
financial statements.

    Exchange Rate Data

    The Company's US dollar reporting provides more relevant information
given the predominance of its operations in the United States and its US
dollar denominated debt.
    The following table presents relevant exchange rates information based
upon the Bank of Canada closing rates expressed as US dollars per Cdn$1.00:

    
                                                     12-week periods ended
                                            ---------------------------------
                                                      July 19,       July 20,
                                                         2009           2008
                                            ---------------------------------
    Average for period(1)                              0.8734         0.9910
    Period end                                         0.8961         0.9943
    -------------------------------------------------------------------------
    (1) Calculated by taking the average of the closing exchange rates of
        each day in the applicable period.
    

    As the Company uses the US dollar as its reporting currency, in its
consolidated financial statements and in the present press release, unless
indicated otherwise, results from Canadian and corporate operations are
translated into US dollars using the average rate for the period. Variances
and explanations related to variations in the foreign exchange rate and the
volatility of the Canadian dollar which are discussed in the present press
release are therefore related to the translation in US dollars of Canadian and
corporate operations results and do not have a true economic impact on
Couche-Tard's performance since most of its consolidated revenues and expenses
are received or denominated in the functional currency of the markets in which
it does business. Accordingly, the Company's sensitivity to variations in
foreign exchange rates is economically limited.

    Selected Consolidated Financial Information

    The following table highlights certain information regarding
Couche-Tard's operations for the 12-week periods ended July 19, 2009 and July
20, 2008:

    
                              -----------------------------------------------
    (In millions of
     US dollars, unless
     otherwise stated)               12-week periods ended
                              -----------------------------------------------
                                       July 19,       July 20,     Variation
                                          2009           2008              %
                              -----------------------------------------------
    Statement of Operations
     Data:
    Merchandise and service
     revenues(1):
      United States                      953.7          857.8           11.2
      Canada                             437.1          444.2           (1.6)
                              -----------------------------------------------
      Total merchandise and
       service revenues                1,390.8        1,302.0            6.8
                              -----------------------------------------------
    Motor fuel revenues:
      United States                    1,911.5        2,622.5          (27.1)
      Canada                             372.8          394.5           (5.5)
                              -----------------------------------------------
      Total motor fuel
       revenues                        2,284.3        3,017.0          (24.3)
                              -----------------------------------------------
    Total revenues                     3,675.1        4,319.0          (14.9)
                              -----------------------------------------------
                              -----------------------------------------------
    Merchandise and service
     gross profit(1):
      United States                      312.7          277.9           12.5
      Canada                             149.3          157.5           (5.2)
                              -----------------------------------------------
      Total merchandise and
       service gross profit              462.0          435.4            6.1
                              -----------------------------------------------
    Motor fuel gross profit:
      United States                      119.4          101.0           18.2
      Canada                              28.0           21.7           29.0
                              -----------------------------------------------
      Total motor fuel gross
       profit                            147.4          122.7           20.1
                              -----------------------------------------------
    Total gross profit                   609.4          558.1            9.2
    Operating, selling,
     administrative and
     general expenses                    431.0          423.1            1.9
    Depreciation and
     amortization of property
     and equipment and other
     assets                               45.0           42.9            4.9
                              -----------------------------------------------
    Operating income                     133.4           92.1           44.8
                              -----------------------------------------------
    Net earnings                          91.1           47.2           93.0
                              -----------------------------------------------
                              -----------------------------------------------
    Other Operating Data:
    Merchandise and service
     gross margin(1):
      Consolidated                        33.2%          33.4%          (0.2)
      United States                       32.8%          32.4%           0.4
      Canada                              34.2%          35.5%          (1.3)
    Growth (decrease) of
     same-store merchandise
     revenues(2)(3):
      United States                        2.4%           0.0%
      Canada                               2.6%          (0.7%)
    Motor fuel gross margin(3):
      United States (cents
       per gallon)                       15.43          15.55           (0.8)
      Canada (Cdn cents per
       litre)                             5.76           5.53            4.2
    Volume of motor fuel sold(4):
      United States (millions
       of gallons)                       800.5          675.6           18.5
      Canada (millions of
       litres)                           555.5          395.9           40.3
    Growth (decrease) of
     same-store motor fuel
     volume(3):
      United States                        1.6%          (4.5%)
      Canada                               1.5%           2.8%
                              -----------------------------------------------
    Per Share Data:
      Basic net earnings per
       share (dollars per
       action)                            0.49           0.24          104.2
      Diluted net earnings per
       share (dollars per
       action)                            0.48           0.24          100.0

                              -----------------------------------------------
                                       July 19,      April 26,     Variation
                                          2009           2009              $
                              -----------------------------------------------
    Balance Sheet Data:
      Total assets                     3,430.9        3,255.9          175.0
      Interest-bearing debt              779.6          749.2           30.4
      Shareholders' equity             1,411.2        1,326.0           85.2
    Ratios:
      Net interest-bearing
       debt/total
       capitalization(5)              0.30 : 1       0.30 : 1
      Net interest-bearing
       debt/EBITDA(6)                 0.96 : 1(7)    0.98 : 1
    -------------------------------------------------------------------------
    1. Includes other revenues derived from franchise fees, royalties and
       rebates on some purchases by franchisees and licensees.
    2. Does not include services and other revenues (as described in footnote
       1 above). Growth in Canada is calculated based on Canadian dollars.
    3. For company-operated stores only.
    4. Includes volume of franchisees and dealers.
    5. This ratio is presented for information purposes only and represents a
       measure of financial condition used especially in financial circles.
       It represents the following calculation: long-term interest-bearing
       debt, net of cash and cash equivalents and temporary investments,
       divided by the addition of shareholders' equity and long-term debt,
       net of cash and cash equivalents and temporary investments. It does
       not have a standardized meaning prescribed by Canadian GAAP and
       therefore may not be comparable to similar measures presented by other
       public companies.
    6. This ratio is presented for information purposes only and represents a
       measure of financial condition used especially in financial circles.
       It represents the following calculation: long-term interest-bearing
       debt, net of cash and cash equivalents and temporary investments,
       divided by EBITDA (Earnings Before Interest, Tax, Depreciation and
       Amortization). It does not have a standardized meaning prescribed by
       Canadian GAAP and therefore may not be comparable to similar measures
       presented by other public companies.
    7. This ratio was standardized over a period of one year. It includes the
       results of the first quarter of the fiscal year which will end
       April 25, 2010 as well as the second, third and fourth quarters of the
       year ended April 26, 2009.
    

    Operating Results

    Revenues amounted to $3.7 billion in the first quarter of fiscal 2010,
down $643.9 million, a decrease of 14.9 % compared to the first quarter of
fiscal 2009. The decline is chiefly the result of a $1.1 billion decrease in
motor fuel revenues resulting from a lower sale price and an adverse impact of
$100.0 million from the weakening Canadian dollar. These factors contributing
to the decrease were partially offset by a $471.0 million increase generated
by acquisitions as well as by the growth of same-store merchandise revenues
and motor fuel volume in both the United States and Canada.
    More specifically, the growth of merchandise and service revenues for the
first quarter of fiscal 2010 was $88.8 million, an increase of 6.8% compared
to the same period last fiscal year, of which $117.0 million was generated by
acquisitions, partially offset by a $53.0 million related to the depreciation
of the Canadian dollar against its U.S. counterpart. Regarding internal
growth, as measured by the growth in same-store merchandise revenues, it rose
by 2.4% in the United States, mainly because of the increase in tobacco
products retail prices following the increases in taxes on these products. As
for the Canadian market, the increase in same-store merchandise revenues was
2.6%.
    Motor fuel revenues decreased by $732.7 million or 24.3% in the first
quarter of fiscal 2010. The lower average retail price at the pump in the
United Stated and Canada created a drop in revenues of $1.1 billion, as shown
in the following table, beginning with the second quarter of the fiscal year
ended April 26, 2009:

    
                                                                    Weighted
    Quarter                      2nd       3rd       4th       1st   average
    -------------------------------------------------------------------------
    52-week period ended
     July 19, 2009
    -------------------------------------------------------------------------
      United States
       (US dollars
       per gallon)              3.67      2.00      1.95      2.41      2.46
      Canada (Cdn cents
       per litre)             114.37     78.05     78.67     88.80     89.31
    52-week period ended
     July 20, 2008
      United States
      (US dollars
       per gallon)              2.73      2.96      3.22      3.91      3.18
      Canada (Cdn cents
       per litre)              92.35     95.92    103.69    122.66    103.25
    -------------------------------------------------------------------------
    

    Acquisitions contributed 141.0 million additional gallons in the first
quarter, or $361.0 million in revenues, partially offset by the depreciation
of the Canadian dollar against its U.S. counterpart, resulting in a decrease
in revenues of $47.0 million. As for the growth in same-store motor fuel
volume, it was 1.6% in the United States and 1.5% in Canada. The performance
in the United States is a nice improvement over the previous four quarters
which had posted important same-store volume decreases because of the harsh
economic conditions.
    The merchandise and service gross margin fell slightly by 0.2% in the
first quarter of fiscal 2010 from 33.4% during the same period in fiscal 2009.
In the United States, despite additional tax increases on tobacco products on
July 1st, 2009 in Florida and Mississippi - which add to the significant
federal tax increase that became effective April 1st, 2009 - the gross margin
was 32.8%, an increase from 32.4% the previous year. As for Canada, margin
fell to 34.2%, a 1.3% decrease. However, it has to be noted that in the first
quarter of fiscal 2009, the margin was unusually high since it had benefited
from adjustments related to obligations towards dealers in the Western Canada
division as well as from retroactive adjustments to certain suppliers rebates.
Excluding these non-recurring items, for the first quarter of fiscal 2009, the
margin would have been 35.0% in Canada and 33.3 % on a consolidated basis. In
addition, in both the United States and Canada, gross margin reflects
Couche-Tard's merchandising strategy in tune with market competitiveness and
economic conditions within each market and the fact that some recent
acquisitions posted a lower gross margin than the existing network thereby
lowering the overall gross margin. This latter situation should improve as
integration and improved supply terms strategies are implemented.
    During the first quarter, the motor fuel gross margin for
company-operated stores in the United States decreased by 0.12 cents per
gallon, from 15.55 cents per gallon last year to 15.43 cents per gallon this
year. In Canada, the margin rose, reaching Cdn5.76 cents per litre compared
with Cdn5.53 cents per litre in the first quarter of fiscal 2009. The motor
fuel gross margin of Couche-Tard's company-operated stores in the United
States as well as the impact of expenses related to electronic payment modes
for the last eight quarters, beginning with the second quarter of the fiscal
year ended April 26, 2009 were as follows:

    
    (US cents per gallon)

                                                                    Weighted
    Quarter                      2nd       3rd       4th       1st   average
    -------------------------------------------------------------------------
    52-week period ended
     July 19, 2009
      Before deduction of
       expenses related to
       electronic payment
       modes                   24.88     18.21     11.38     15.43     17.45
      Expenses related to
       electronic payment
       modes                    4.94      3.15      3.10      3.56      3.64
      -----------------------------------------------------------------------
      After deduction of
       expenses related to
       electronic payment
       modes                   19.94     15.06      8.28     11.87     13.81
      -----------------------------------------------------------------------
    52-week period ended
     July 20, 2008
      Before deduction of
       expenses related to
       electronic payment
       modes                   13.04     14.38     10.02     15.55     13.31
      Expenses related to
       electronic payment
       modes                    3.82      3.98      4.02      5.07      4.20
      -----------------------------------------------------------------------
      After deduction of
       expenses related to
       electronic payment
       modes                    9.22     10.40      6.00     10.48      9.11
      -----------------------------------------------------------------------
    -------------------------------------------------------------------------
    

    For the first quarter of fiscal 2010, operating, selling, administrative
and general expenses rose by 1.9% compared with the first quarter of fiscal
2009. Theses expenses increased by 11.5% because of acquisitions while they
decreased by 3.3% and 2.6%, respectively because of the weaker Canadian dollar
and the decrease in electronic payment modes expenses. Excluding these items,
expenses decreased by 3.7%. Moreover, excluding expenses related to electronic
payment modes for both comparable periods, expenses in proportion of
merchandise and service sales decreased by 0.9%. Couche-Tard's prudent
management of other controllable expenses as well as cost reduction measures
it has put in place are the main reasons for the decrease.
    Earnings before interests, taxes, depreciation and amortization (EBITDA)
(1) was $178.4 million for the first quarter of fiscal 2010, up 32.1% compared
with last fiscal year. Acquisitions contributed to EBITDA for an amount of
$12.0 million during the quarter.
    For the quarter, the depreciation expense increased due to the
investments made through acquisitions and the ongoing implementation of the
IMPACT program within Couche-Tard's network.
    For the first quarter, financial expenses decreased by $2.9 million
compared with last fiscal year. This decrease is the result of the combined
reduction in Couche-Tard's average borrowings and interest rates.
    The income tax rate for the first quarter of fiscal 2010 is 28.0%
compared to a rate of 42.6% for the same quarter last fiscal year which was
negatively impacted by a non-recurring income tax expense resulting from a
corporate reorganization. Excluding this non-recurring income tax expense, the
income tax rate for the first quarter of last fiscal year stood at 32.6%, 4.6%
higher than the current quarter. This favorable rate variance comes in great
part from the benefits of the corporate reorganization put in place during
fiscal 2009.
    Couche-Tard closed its first quarter of fiscal 2010 with net earnings of
$91.1 million, which equals $0.49 per share (or $0.48 per share on a diluted
basis), compared to $47.2 million last fiscal year ($0.24 per share on a
diluted basis), an increase of $43.9 million or 93.0%.

    Liquidity and Capital Resources

    Couche-Tard's sources of liquidity remain unchanged compared with the
fiscal year ended April 26, 2009. For further information, please refer to its
2009 Annual Report.
    The Company has an interest rate swap agreement, which it entered into in
2004 with a bank. The terms of the agreement remain unchanged compared with
the information provided in Couche-Tard's 2009 Annual Report.
    With respect to Couche-Tard's capital expenditures, acquisitions and
share repurchases carried out in the first quarter of fiscal 2010, they were
financed using available cash flow. The Company expects that its cash
available from operations together with borrowings available under its
revolving unsecured credit facilities, as well as potential sale and leaseback
transactions, will meet its liquidity needs in the foreseeable future.
    Couche-Tard's credit facilities have not changed with respect to their
terms of use since April 26, 2009. As at July 19, 2009, $413.8 million of the
Company's term revolving unsecured operating credits had been used ($360.0
million for the US dollars portion and $53.8 million for the Canadian dollars
portion). The weighted average effective interest rate was 0.93% for the US
dollar portion and 0.99% for the Canadian dollars portion. In addition,
standby letters of credit in the amount of Cdn$0.9 million and $18.3 million
were outstanding as at July 19, 2009. Couche-Tard also has a $350.3 million
subordinated unsecured debt (nominal value amounting to $350.0 million, net of
attributable financing costs of $0.7 million, adjusted for the fair value of
the interest rate swaps designated as a fair value hedge of the debt), bearing
interest at an effective rate of 7.55% (6.60% taking into account the effect
of the interest rate swap described above) and maturing in 2013.

    
    Selected Consolidated Cash Flow Information

    (In millions of
     US dollars)                        12-week periods ended
                              -----------------------------------------------
                                       July 19,       July 20,     Variation
                                          2009           2008              $
                              -----------------------------------------------
    Operating activities
      Cash flows(1)                      141.6           95.8           45.8
      Other                              (63.4)         (37.6)         (25.8)
                              -----------------------------------------------
    Net cash provided by
     operating activities                 78.2           58.2           20.0
                              -----------------------------------------------
    Investing activities
      Business acquisitions              (61.4)         (65.1)           3.7
      Purchase of property
       and equipment, net of
       proceeds from the
       disposal of property
       and equipment                     (26.1)         (32.6)           6.5
      Proceeds from sale and
       leaseback transactions              3.1              -            3.1
      Other                                0.9           (2.9)           3.8
                              -----------------------------------------------
    Net cash used in investing
     activities                          (83.5)        (100.6)          17.1
                              -----------------------------------------------
    Financing activities
      Share repurchase                   (28.3)             -          (28.3)
      Increase in long-term
       borrowing                          27.7           29.1           (1.4)
                              -----------------------------------------------
    Net cash (used in) from
     financing activities                 (0.6)          29.1          (29.7)
                              -----------------------------------------------
                              -----------------------------------------------
    Company credit rating
      Standard and Poor's                  BB+             BB
      Moody's                              Ba1            Ba1
    -------------------------------------------------------------------------
    1. These cash flows are presented for information purposes only and
       represent a performance measure used especially in financial circles.
       They represent cash flows from net earnings, plus depreciation and
       amortization, loss on disposal of assets and future income taxes. They
       do not have a standardized meaning prescribed by Canadian GAAP and
       therefore may not be comparable to similar measures presented by other
       public companies.
    

    Operating activities During the first quarter of fiscal 2010, net cash
from operating activities reached $78.2 million, up $20.0 million from the
first quarter of fiscal 2009. This increase is mainly due to higher net
earnings during the first quarter of fiscal 2010 compared to the first quarter
of fiscal 2009, partially offset by changes in the working capital, including
an increase in accounts receivable and inventories resulting from higher motor
fuel retail prices and cost compared to the fourth quarter of fiscal 2009.
    Investing activities During the first quarter of fiscal 2010, investing
activities were primarily for the acquisition of 44 company-operated stores
for an amount of $61.4 million and to capital expenditures for an amount of
$26.1 million. Capital investments were primarily for the replacement of
equipment in some of Couche-Tard's stores to enhance its offering of products
and services, the addition of new stores as well as the ongoing implementation
of the Company's IMPACT program throughout its network.
    Financing activities During the first quarter of fiscal 2010, Couche-Tard
repurchased shares for a total amount of $28.3 million while the increase in
long term debt amounted to $27.7 million.

    Financial Position

    As shown by its indebtedness ratios included in the "Selected
Consolidated Financial Information" section and our net cash provided by
operating activities, Couche-Tard's financial position is excellent.
    Total consolidated assets amounted to $3.4 billion as at July 19, 2009
compared to $3.3 billion as at April 26, 2009. This increase is the result of
four factors:

    
    1. The increase in property and equipment mainly resulting from the
       stores acquired from ExxonMobil;
    2. The increase in credit and debit cards receivables driven by higher
       motor fuel retail price compared to the fourth quarter of fiscal 2009
       as well as the increase in supplier rebates receivable following the
       increase in merchandise inventories;
    3. The increase in motor fuel inventory due to a higher product cost
       compared to the fourth quarter of fiscal 2009 combined with the
       increase in in-store merchandise inventory because of the summer
       season; and
    4. An overall increase in Canadian and corporate operations assets once
       translated in U.S. dollars due to a stronger Canadian dollar.
    

    Shareholders' equity amounted to $1.4 billion as at July 19, 2009, up
$85.2 million compared to April 26, 2009, reflecting net earnings generated
over the first quarter and the increase in accumulated other comprehensive
income due to the strengthening of the Canadian dollar, partially offset by
the share repurchases made during the quarter.

    
    Summary of Quarterly Results

                             12-week
    (In millions of US        period
     dollars except            ended
     for per share data,     July 19,
     unaudited)                 2009    52-week period ended April 26, 2009
    -------------------------------------------------------------------------
    Quarter                      1st       4th       3rd       2nd       1st
    Weeks                   12 weeks  12 weeks  16 weeks  12 weeks  12 weeks
                           --------------------------------------------------
    Revenues                 3,675.1   2,994.0   3,911.7   4,556.4   4,319.0
                           --------------------------------------------------
    Income before
     depreciation and
     amortization of
     property and
     equipment and other
     assets, financial
     expenses and income
     taxes                     178.4     105.0     168.1     179.7     135.0
    Depreciation and
     amortization of
     property and
     equipment and other
     assets                     45.0      42.6      56.4      41.1      42.9
                           --------------------------------------------------
    Operating income           133.4      62.4     111.7     138.6      92.1
                           --------------------------------------------------
    Financial expenses           6.9       6.8      10.3       9.3       9.8
                           --------------------------------------------------
    Net earnings                91.1      38.0      71.1      97.6      47.2
                           --------------------------------------------------
                           --------------------------------------------------
    Net earnings per share
      Basic                    $0.49     $0.20     $0.37     $0.50     $0.24
      Diluted                  $0.48     $0.20     $0.36     $0.49     $0.24
    -------------------------------------------------------------------------

    (In millions of US
     dollars except
     for per share data,                     Extract from the 52-week period
     unaudited)                                     ended April 27, 2008
    -------------------------------------------------------------------------
    Quarter                                          4th       3rd      2nd
    Weeks                                       12 weeks  16 weeks 12 weeks
                           --------------------------------------------------
    Revenues                                     3,705.8   4,590.9  3,499.8
                           --------------------------------------------------
    Income before
     depreciation and
     amortization of
     property and
     equipment and other
     assets, financial
     expenses and income
     taxes                                          63.7     130.6     135.2
    Depreciation and
     amortization of
     property and
     equipment and other
     assets                                         39.9      53.8      41.1
                           --------------------------------------------------
    Operating income                                23.8      76.8      94.1
                           --------------------------------------------------
    Financial expenses                               9.1      16.7      13.8
                           --------------------------------------------------
    Net earnings                                    15.5      50.5      54.2
                           --------------------------------------------------
                           --------------------------------------------------
    Net earnings per share
      Basic                                        $0.08     $0.25     $0.27
      Diluted                                      $0.08     $0.24     $0.26
    -------------------------------------------------------------------------
    

    Outlook

    In the course of fiscal year 2010, Couche-Tard expects to pursue its
investments with caution in order to, amongst other things, deploy its IMPACT
program. Given the economic climate and its attractive access to capital, the
Company is well positioned to realize acquisitions and create value. However,
the Company will continue to exercise patience in order to benefit from a fair
price in view of current market conditions. Couche-Tard also intends to keep
an ongoing focus on its supply terms and operating expenses.
    Finally, in line with its business model, Couche-Tard intends to continue
to focus its resources on the sale of fresh products and on innovation,
including the introduction of new products and services, in order to satisfy
the needs of its large clientele.

    August 25, 2009

    Profile

    Alimentation Couche-Tard Inc. is the leader in the Canadian convenience
store industry. In North America, Couche-Tard is the second largest
independent convenience store operator (whether integrated with a petroleum
company or not) in terms of number of stores. Couche-Tard currently has a
network of 5,906 convenience stores, 4,122 of which include motor fuel
dispensing, located in 11 large geographic markets, including eight in the
United States covering 43 states and the District of Columbia and three in
Canada covering ten provinces. More than 52,000 people are employed throughout
Couche-Tard's retail convenience network and service centers.

    The statements set forth in this press release, which describes
Couche-Tard's objectives, projections, estimates, expectations or forecasts,
may constitute forward-looking statements within the meaning of securities
legislation. Positive or negative verbs such as "plan", "evaluate",
"estimate", "believe" and other related expressions are used to identify such
statements. Couche-Tard would like to point out that, by their very nature,
forward-looking statements involve risks and uncertainties such that its
results, or the measures it adopts, could differ materially from those
indicated or underlying these statements, or could have an impact on the
degree of realization of a particular projection. Major factors that may lead
to a material difference between Couche-Tard's actual results and the
projections or expectations set forth in the forward-looking statements
include the effects of the integration of acquired businesses and the ability
to achieve projected synergies, fluctuations in margins on motor fuel sales,
competition in the convenience store and retail motor fuel industries,
exchange rate variations, and such other risks as described in detail from
time to time in the reports filed by Couche-Tard with securities authorities
in 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.

    
    Webcast on August 25, 2009 at 3:30 P.M. (EST)
    -------------------------------------------------------------------------
    

    Couche-Tard invites analysts known to the Company to send their two
questions in advance to its management, before 1:30 P.M. (EST) on August 25,
2009.
    Financial analysts and investors who wish to listen to the webcast on
Couche-Tard's results which will take place online on August 25, 2009 at 3:30
P.M. (EST) can do so by accessing the Company's website at www.couche-tard.com
and by clicking on the corporate presentations link of the investor relations
section. For those who will not be able to listen to the live presentation,
the recording of the webcast will be available on the Company's website for a
period of 90 days.

    
    ------------------------------
    (1) Earnings before interests, taxes, depreciation and amortization is
        not a performance measure defined by Canadian GAAP, but management,
        investors and analysts use this measure to evaluate our operating and
        financial performance. Note that our definition of this measure may
        differ from the ones used by other public companies.


    CONSOLIDATED STATEMENTS OF EARNINGS
    (in millions of US dollars, except per share amounts, unaudited)

    For the 12-week periods ended                     July 19,       July 20,
                                                         2009           2008
    -------------------------------------------------------------------------
                                                            $              $

    Revenues                                          3,675.1        4,319.0
    Cost of sales (excluding depreciation
     and amortization of property and
     equipment and other assets as
     shown separately below)                          3,065.7        3,760.9
    -------------------------------------------------------------------------
    Gross profit                                        609.4          558.1
    -------------------------------------------------------------------------

    Operating, selling, administrative and
     general expenses                                   431.0          423.1
    Depreciation and amortization of property
     and equipment and other assets                      45.0           42.9
    -------------------------------------------------------------------------
                                                        476.0          466.0
    -------------------------------------------------------------------------
    Operating income                                    133.4           92.1
    Financial expenses                                    6.9            9.8
    -------------------------------------------------------------------------
    Earnings before income taxes                        126.5           82.3
    Income taxes                                         35.4           35.1
    -------------------------------------------------------------------------
    Net earnings                                         91.1           47.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net earnings per share (Note 4)
      Basic                                              0.49           0.24
      Diluted                                            0.48           0.24
    Weighted average number of shares
     (in thousands)                                   186,201        196,727
    Weighted average number of shares - diluted
     (in thousands)                                   189,979        200,684
    Number of shares outstanding at end of period
     (in thousands)                                   185,233        196,731
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The accompanying notes are an integral part of the consolidated financial
    statements.



    CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
    (in millions of US dollars, unaudited)

    For the 12-week period ended                               July 19, 2009
    -------------------------------------------------------------------------
                                                            Accumu-
                                                             lated
                                                             other
                                        Contri-             compre-    Share-
                             Capital     buted  Retained   hensive   holders'
                               stock   surplus  earnings    income    equity
    -------------------------------------------------------------------------
                                   $         $         $         $         $
    Balance, beginning of
     period                    329.1      17.7     932.6      46.6   1,326.0
    Comprehensive income:
      Net earnings                                  91.1                91.1
      Change in cumulative
       translation
       adjustments(1)                                         25.0      25.0
      Change in fair value
       of a financial
       instrument designated
       as a cash flow hedge                                    0.5       0.5
                                                                    ---------
    Comprehensive income for
     the period                                                        116.6
                                                                    ---------
    Dividends                                       (6.0)               (6.0)
    Stock-based compensation
     expense (note 6)                      0.4                           0.4
    Repurchase and
     cancellation of shares     (5.7)                                   (5.7)
    Excess of acquisition
     cost over book value of
     Class A multiple voting
     shares and Class B
     subordinate voting
     shares repurchased and
     cancelled                                     (20.1)              (20.1)
    -------------------------------------------------------------------------
    Balance, end of period     323.4      18.1     997.6      72.1   1,411.2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    For the 12-week period ended                               July 20, 2008
    -------------------------------------------------------------------------
                                                            Accumu-
                                                             lated
                                                             other
                                        Contri-             compre-    Share-
                             Capital     buted  Retained   hensive   holders'
                               stock   surplus  earnings    income    equity
    -------------------------------------------------------------------------
                                   $         $         $         $         $
    Balance, beginning of
     period                    348.8      15.6     775.0     114.3   1,253.7
    Comprehensive income:
      Net earnings                                  47.2                47.2
      Change in cumulative
       translation
       adjustments(1)                                          2.2       2.2
                                                                    ---------
    Comprehensive income for
     the period                                                         49.4
                                                                    ---------
    Dividends                                       (6.8)               (6.8)
    Stock-based compensation
     expense (note 6)                      0.8                           0.8
    -------------------------------------------------------------------------
    Balance, end of period     348.8      16.4     815.4     116.5   1,297.1
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    (1) For the 12-week period ended July 19, 2009, these amounts include a
        gain of $43.0 (net of income taxes of $16.7). For the 12-week period
        ended July 20, 2008 these amounts include a gain of $5.9 (net of
        income taxes of $2.8), These gains and losses arise from the
        translation of US dollar denominated long-term debt designated as a
        foreign exchange hedge of the Company's net investment in its U.S.
        self-sustaining operations.

    The accompanying notes are an integral part of the consolidated financial
    statements.



    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in millions of US dollars, unaudited)

    For the 12-week periods ended                          July 19,  July 20,
                                                              2009      2008
    -------------------------------------------------------------------------
                                                                 $         $
    Operating activities
    Net earnings                                              91.1      47.2
    Adjustments to reconcile net earnings to
     net cash provided by operating activities
      Depreciation and amortization of property
       and equipment and other assets, net of
       amortization of deferred credits                       39.0      38.1
      Future income taxes                                     11.6       9.6
      (Gain) loss on disposal of property and
       equipment and other assets                             (0.1)      0.9
      Deferred credits                                         2.0       2.3
      Other                                                    4.2       4.4
      Changes in non-cash working capital                    (69.6)    (44.3)
    -------------------------------------------------------------------------
    Net cash provided by operating activities                 78.2      58.2
    -------------------------------------------------------------------------

    Investing activities
    Business acquisitions (Note 3)                           (61.4)    (65.1)
    Purchase of property and equipment                       (26.1)    (35.0)
    Proceeds from disposal of property and
     equipment and other assets                                4.7       2.4
    Increase in other assets                                  (3.8)     (2.9)
    Proceeds from sale and leaseback transactions              3.1         -
    -------------------------------------------------------------------------
    Net cash used in investing activities                    (83.5)   (100.6)
    -------------------------------------------------------------------------

    Financing activities
    Repurchase of shares                                     (28.3)        -
    Net increase in long-term debt                            27.7      29.1
    -------------------------------------------------------------------------
    Net cash (used in) provided by financing activities       (0.6)     29.1
    -------------------------------------------------------------------------
    Effect of exchange rate fluctuations on cash and
     cash equivalents                                          5.0       0.8
    -------------------------------------------------------------------------
    Net decrease in cash and cash equivalents                 (0.9)    (12.5)
    Cash and cash equivalents, beginning of period           173.3     216.0
    -------------------------------------------------------------------------
    Cash and cash equivalents, end of period                 172.4     203.5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental information:
      Interest paid                                           13.0      14.3
      Income taxes paid                                       26.8      24.9
    -------------------------------------------------------------------------

    The accompanying notes are an integral part of the consolidated financial
    statements.



    CONSOLIDATED BALANCE SHEETS
    (in millions of US dollars)

                                                             As at     As at
                                                           July 19, April 26,
                                                              2009      2009
                                                       (unaudited)
    -------------------------------------------------------------------------
                                                                 $         $
    Assets
    Current assets
      Cash and cash equivalents                              172.4     173.3
      Accounts receivable                                    269.5     225.4
      Inventories                                            443.5     400.3
      Prepaid expenses                                        22.1       8.5
      Future income taxes                                     37.4      37.0
    -------------------------------------------------------------------------
                                                             944.9     844.5
    Property and equipment                                 1,844.1   1,789.4
    Goodwill                                                 398.4     384.8
    Trademarks and licenses                                  173.8     172.0
    Deferred charges                                          10.6      10.9
    Other assets                                              52.8      49.8
    Future income taxes                                        6.3       4.5
    -------------------------------------------------------------------------
                                                           3,430.9   3,255.9
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities
    Current liabilities
      Accounts payable and accrued liabilities               793.9     758.1
      Income taxes payable                                    25.8      26.3
      Future income taxes                                      0.9       0.7
      Current portion of long-term debt                        2.8       3.9
    -------------------------------------------------------------------------
                                                             823.4     789.0
    Long-term debt                                           776.8     745.3
    Deferred credits and other liabilities                   264.2     259.0
    Future income taxes                                      155.3     136.6
    -------------------------------------------------------------------------
                                                           2,019.7   1,929.9
    -------------------------------------------------------------------------

    Shareholders' equity
    Capital stock                                            323.4     329.1
    Contributed surplus                                       18.1      17.7
    Retained earnings                                        997.6     932.6
    Accumulated other comprehensive income                    72.1      46.6
    -------------------------------------------------------------------------
                                                           1,411.2   1,326.0
    -------------------------------------------------------------------------
                                                           3,430.9   3,255.9
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    The accompanying notes are an integral part of the consolidated financial
    statements.



    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
    (in millions of US dollars, except per share and stock option data,
     unaudited)
    

    1. CONSOLIDATED FINANCIAL STATEMENTS PRESENTATION

    The unaudited interim consolidated financial statements have been
prepared by the Company in accordance with Canadian generally accepted
accounting principles (Canadian GAAP) and have not been subject to a review
engagement by the Company's external auditors. These consolidated financial
statements were prepared in accordance with the same accounting policies and
methods as the audited annual consolidated financial statements for the year
ended April 26, 2009, with the exception of the accounting changes described
in Note 2 below. The unaudited interim consolidated financial statements do
not include all the information for complete financial statements and should
be read in conjunction with the audited annual consolidated financial
statements and notes thereto in the Company's 2009 Annual Report (the 2009
Annual Report). The results of operations for the interim periods presented do
not necessarily reflect results expected for the full year. The Company's
business follows a seasonal pattern. The busiest period is the first half-year
of each fiscal year, which includes summer's sales.

    2. ACCOUNTING CHANGES

    Goodwill and Intangible Assets

    On April 27, 2009, the Company adopted Canadian Institute of Chartered
Accountants (CICA) Handbook Section 3064 "Goodwill and Intangible Assets",
replacing Section 3062 "Goodwill and Other Intangible Assets" and Section 3450
"Research and Development Costs". The new Section establishes standards for
the recognition, measurement, presentation and disclosure of goodwill
subsequent to its initial recognition and of intangible assets by
profit-oriented enterprises. Standards relating to goodwill are unchanged from
the standards included in the previous Section 3062. The adoption of this new
Section had no impact on the Company's consolidated financial statements.

    3. BUSINESS ACQUISITIONS

    On May 28, 2009, the Company purchased 43 company-operated stores in the
Phoenix, Arizona region, United-States from ExxonMobil Corporation. The
Company leases the lands and buildings related to nine sites, it owns the
building and leases the land for one site, while it owns both these assets for
the other sites. Under the same transaction, ExxonMobil also transferred to
the Company the "On the Run" trademark rights in the United States as well as
444 franchised stores operating under this trademark in the United States.
    During the quarter, the Company also acquired one store through a
distinct transaction.
    These acquisitions were settled for a total cash consideration of $61.4,
including direct acquisition costs. The preliminary allocations of the
purchase price of the acquisitions were established based on available
information and on the basis of preliminary evaluations and assumptions
management believes to be reasonable. Since the Company has not completed its
fair value assessment of the net assets acquired for all transactions, the
preliminary allocations of certain acquisitions are subject to adjustments to
the fair value of the assets and liabilities until the process is completed.
The allocations are based on the estimated fair values on the dates of
acquisition:

    
                                                                           $
    Tangible assets acquired
      Inventories                                                        3.8
      Property and equipment                                            57.7
      Other assets                                                       0.1
    -------------------------------------------------------------------------
    Total tangible assets                                               61.6
    -------------------------------------------------------------------------
    Liabilities assumed
      Accounts payable and accrued liabilities                           1.0
      Deferred credits and other liabilities                             0.7
    -------------------------------------------------------------------------
    Total liabilities                                                    1.7
    -------------------------------------------------------------------------
    Net tangible assets acquired                                        59.9
    -------------------------------------------------------------------------
    Intangibles                                                          1.3
    Goodwill                                                             0.2
    -------------------------------------------------------------------------
    Total consideration paid, including direct acquisition costs        61.4
    -------------------------------------------------------------------------

    The Company expects that approximately $0.1 of the goodwill related to
these transactions will be deductible for tax purposes.


    4. NET EARNINGS PER SHARE

                             12-week period                   12-week period
                        ended July 19, 2009              ended July 20, 2008
    -------------------------------------------------------------------------
                            Weighted                      Weighted
                             average                       average
                              number       Net              number       Net
                           of shares  earnings           of shares  earnings
                       Net  (in thou-      per       Net  (in thou-      per
                  earnings     sands)    share  earnings     sands)    share
    -------------------------------------------------------------------------
                         $                   $         $                   $
    Basic net
     earnings
     attributable
     to Class A
     and B
     shareholders     91.1   186,201      0.49      47.2   196,727      0.24

    Dilutive effect
     of stock
     options                   3,778      0.01               3,957         -
                   ----------------------------------------------------------
    Diluted net
     earnings
     available for
     Class A and B
     shareholders     91.1   189,979      0.48      47.2   200,684      0.24
                   ----------------------------------------------------------
                   ----------------------------------------------------------
    

    A total of 1,719,775 stock options are excluded from the calculation of
the diluted net earnings per share due to their antidilutive effect for the
12-week period ended July 19, 2009. There are 1,599,839 stocks options
excluded from the calculation for the 12-week period ended July 20, 2008.


    5. CAPITAL STOCK

    As at July 19, 2009, the Company has 53,708,112 (53,881,212 as at July
20, 2008) issued and outstanding Class A multiple voting shares each
comprising ten votes per share and 131,524,524 (142,849,776 as at July 20,
2008) outstanding Class B subordinate voting shares each comprising one vote
per share.
    On August 8, 2008, the Company implemented a share repurchase program
which allows to repurchase up to 2,693,860 Class A multiple voting shares
(representing 5.0% of the 53,877,212 Class A multiple voting shares issued and
outstanding as at July 29, 2008) and up to 14,031,210 Class B subordinate
voting shares (representing 10.0% of the 140,312,108 Class B subordinate
voting shares of the public float, as defined by applicable rules, as at July
29, 2008). When making such repurchases, the number of issued and outstanding
Class A multiple voting shares and Class B subordinate voting shares is
reduced and the proportionate interest of the shareholders in the share
capital of the Company is increased on a pro rata basis. All shares
repurchased under the share repurchase program are cancelled upon repurchase.
During the 12-week period ended July 19, 2009, the Company has repurchased
under this program a total of 2,300 Class A multiple voting shares at an
average cost of Cdn$13.19 and 2,445,700 Class B subordinate voting shares at
an average cost of Cdn$13.20. On a cumulative basis since the implementation
of the program, the Company has repurchased a total of 17,600 Class A multiple
voting shares at an average cost of Cdn$13.18 and 9,929,100 Class B
subordinate voting shares at an average cost of Cdn$13.07.

    6. STOCK-BASED COMPENSATION AND OTHER STOCK-BASED PAYMENTS

    Stock options

    As at July 19, 2009, 8,759,703 stock options for the purchase of Class B
subordinate voting shares are outstanding (9,002,239 as at July 20, 2008).
These stock options can be gradually exercised at various dates until May 1,
2019, at an exercise price varying from Cdn$2.38 to Cdn$25.71. One series of
15,000 stock options at an exercise price of Cdn$13.15 was granted since the
beginning of the fiscal year.
    For the 12-week period ended July 19, 2009, the stock-based compensation
costs amount to $0.4. For the 12-week period ended July 20, 2008, the
stock-based compensation costs amount to $0.8.
    The fair value of stock options granted is estimated at the grant date
using the Black & Scholes option pricing model on the basis of the following
assumptions for the stock options granted during the period:

    
    - risk-free interest rate of 2.56%;
    - expected life of 8 years;
    - expected volatility of 33%;
    - expected quarterly dividend of Cdn$0.035 per share.
    

    The weighted average fair value of stock options granted since the
beginning of the year is Cdn$4.67 (Cdn$5.63 as at July 20, 2008). A
description of the Company's stock-based compensation plan is included in Note
20 of the consolidated financial statements presented in the 2009 Annual
Report.

    Phantom stock units

    On May 1st, 2009, the Company implemented a Phantom Stock Unit (the
"PSU") Plan allowing the Board of Directors, through its Human Resources and
Corporate Governance Committee, to grant PSUs, to the officers and selected
key employees of the Company (the "Participants"). A PSU is a notional unit,
which value is based on the weighted average reported closing price for a
board lot of the Company's Class B subordinated voting share (the "Class B
share") on the Toronto Stock Exchange for the five trading days immediately
preceding the grant date. The PSU provides the Participant with the
opportunity to earn a cash award equal to the fair market value of the
Company's Class B shares on the open market of the Toronto Stock Exchange upon
vesting of the PSU. Each PSU initially granted vest no later than one day
prior to the third anniversary of the grant date subject namely to the
achievement of performance objectives of the Company, based on external and
internal benchmarks, over a three-year performance period. PSUs are not
dilutive since they are solely payable in cash.
    The PSU compensation cost and the related liability are recorded on a
straight-line basis over the corresponding vesting period based on the fair
market value of Class B shares and the best estimate of the number of PSUs
that will ultimately be paid. The liability is adjusted periodically to
reflect any variation in the fair market value of the Class B shares. For the
12-week period ended July 19, 2009, the Company granted 189,247 PSUs and the
compensation costs amount to $0.2. As at July 19, 2009, 189,247 PSUs were
outstanding. On the consolidated balance sheet, the obligation related to the
PSU Plan is recorded in deferred credit and other liabilities.
    To manage current and forecasted risk related to changes in the fair
market value of the PSUs granted by the Company, the Company has entered into
a financial arrangement with an investment grade financial institution. The
financial arrangement includes a total return swap with an underlying
representing 189,247 Class B shares (the "Instrument"). The Instrument is
recorded at fair market value on the consolidated balance sheet under other
assets. The financial arrangement will be adjusted as needed to reflect new
awards and/or settlements of PSUs.
    The Company has documented and identified the Instrument as a cash flow
hedge of the anticipated cash settlement transaction related to the granted
PSUs. The Company has determined that the instrument is an effective hedge at
the time of the establishment of the hedge and for the duration of the
Instrument. The changes in the fair value of the instrument are initially
recorded in consolidated other comprehensive income and subsequently
reclassified to consolidated net earnings in the same period the recording of
the change in the fair value of the PSUs affects consolidated net earnings.
Should a portion of the hedge become ineffective or should the Company come to
expect at any time that all or a portion of the gain or loss on the instrument
previously recorded in other comprehensive income will not be recovered in
future periods, it would reclassify immediately into consolidated net earnings
the gain or loss on the instrument related to the ineffective portion of the
hedge or that is no longer expected to be recovered. As at July 19, 2009, the
fair value of the Instrument was $0.5.

    7. EMPLOYEE FUTURE BENEFITS

    For the 12-week period ended July 19, 2009, the Company's total net
pension expense included in its consolidated statement of earnings amounts to
$2.1. For the corresponding 12-week period ended July 20, 2008, the expense is
$1.5. The Company's pension plans are described in Note 21 of the consolidated
financial statements presented in the 2009 Annual Report.

    8. SEGMENTED INFORMATION

    The Company operates convenience stores in the United States and in
Canada. It essentially operates in one reportable segment, the sale of goods
for immediate consumption and motor fuel through corporate stores or franchise
operations. It operates a convenience store chain under several banners,
including Couche-Tard, Mac's and Circle K. Revenues from outside sources
mainly fall into two categories: merchandise and services and motor fuel.
    The following table provides the information on the principal revenue
classes as well as geographic information:

    
                            12-week period               12-week period
                         ended July 19, 2009          ended July 20, 2008
                    ---------------------------------------------------------
                              United                        United
                    Canada    States     Total    Canada    States     Total
                    ---------------------------------------------------------
                         $         $         $         $         $         $
    External
     customer
     revenues(a)
    Merchandise
     and services    437.1     953.7   1,390.8     444.2     857.8   1,302.0
    Motor fuel       372.8   1,911.5   2,284.3     394.5   2,622.5   3,017.0
                    ---------------------------------------------------------
                     809.9   2,865.2   3,675.1     838.7   3,480.3   4,319.0
                    ---------------------------------------------------------
                    ---------------------------------------------------------
    Gross Profit
    Merchandise and
     services        149.3     312.7     462.0     157.5     277.9     435.4
    Motor fuel        28.0     119.4     147.4      21.7     101.0     122.7
                    ---------------------------------------------------------
                     177.3     432.1     609.4     179.2     378.9     558.1
                    ---------------------------------------------------------
                    ---------------------------------------------------------
    Property and
     equipment and
     goodwill(a)     469.0   1,773.5   2,242.5     517.2   1,688.1   2,205.3
                    ---------------------------------------------------------
                    ---------------------------------------------------------

    (a) Geographic areas are determined according to where the Company
        generates operating income (where the sale takes place) and according
        to the location of the property and equipment and goodwill.


    9. RECENTLY ISSUED ACCOUNTING STANDARDS NOT YET IMPLEMENTED

    Accounting changes
    ------------------
    

    In June 2009, CICA amended Section 1506 "Accounting changes", to exclude
from the scope of this Section, changes in accounting policies upon the
complete replacement of an entity's primary basis of accounting. This
amendment is effective for years beginning after July 1, 2009.

    
    Financial instruments - recognition and measurement
    ---------------------------------------------------
    

    In June 2009, CICA amended Section 3855 "Financial instruments -
recognition and measurement" to clarify application of the effective interest
rate method after a debt instrument has been impaired. The amendment also
clarifies when an embedded prepayment option is separated from its host debt
instrument for accounting purposes. This amendment is effective January 1,
2011, at which time Canadian public companies will have adopted IFRS. At this
point the Company does not intend to early adopt this amendment. The Company
is currently evaluating the impact of the adoption of this amendment.

    
    Financial instruments - disclosures
    -----------------------------------
    

    In June 2009, CICA amended Section 3862 "Financial instruments -
disclosures" to enhance disclosure requirements about liquidity risk of
financial instruments. The amendment also includes new disclosure requirements
about fair value measurement of financial instruments. This amendment is
effective January 1, 2011, at which time Canadian public companies will have
adopted IFRS. At this point the Company does not intend to early adopt this
amendment. The Company is currently evaluating the impact of the adoption of
this amendment.




For further information:

For further information: Raymond Paré, Vice-President and Chief
Financial Officer, (450) 662-6632 ext. 4607,
investor.relations@couche-tard.com


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