Solid performance in third quarter 2020 for Richelieu - Two new acquisitions in Canada and the U. S.
Five acquisitions since the beginning of the year, adding over $70 million in annual sales.
- Total sales amounted to $311.2 million in the third quarter ended August 31, 2020, up 15.6% over the third quarter of 2019. For the first nine months of the fiscal year, sales totalled $808.8 million, up 4.1%.
- EBITDA increased 44.8% to $49.1 million in the third quarter and the EBITDA margin improved to 15.8% from 12.6% in Q3 2019. The EBITDA margin for the first nine months was 13.3%, up from 11.5% for the first nine months of 2019, and EBITDA was $107.7 million, up 20.8%.
- Diluted net earnings per share increased 56.3% to $0.50 for the third quarter. They were $1.03 for the first nine months, up 24.1%.
- Sound and solid financial position with $74.5 million in cash and $376.2 million in working capital, up 12.1% (3.6:1 ratio).
- A quarterly dividend of $0.0667 per share was declared.
MONTREAL, Oct. 8, 2020 /CNW Telbec/ - "Third quarter performance was very satisfactory for Richelieu (TSX: RCH), notably in terms of profitability and expansion. Total sales increased by 15.6%, of which 6.9% from internal growth and 8.7% from acquisitions. Third quarter sales increased by 82.3% in the hardware retailers and renovation superstores market, of which 36.0% is attributable to the Mibro acquisition completed in the first quarter and 46.3% to a strong increase in demand and higher cyclical sales. Similarly, our EBITDA margin improved significantly to 15.8% and our diluted net earnings per share increased to 56.3%. These results notably reflect our One-stop shop approach, the diversification of our market segments and our operational agility, which allows us to react quickly to current market conditions," said Richard Lord, President and Chief Executive Officer.
"We acquired two new distributors of specialty hardware in the third quarter, for a total of five since the beginning of the year, thereby bringing additional annual sales of over $70 million. Central Wholesale Supply in Richmond, Virginia, which we purchased on June 29, gave us access to a new geographic market. It was followed by Lion Hardware on August 4. This distributor in Saint-Jacques, New Brunswick, serves a clientele of windows and doors manufacturers in eastern Canada. It adds to our offerings and customer base in this market segment, in which we had already acquired two distributors in 2019. This completes our Canadian coverage of this market segment.
As the health and safety of our employees and partners remain our top priority, in the current pandemic environment, we continue to rigorously apply the measures implemented by the relevant authorities. In addition, we still have some 600 of our employees who continue to work from home. With Richelieu's healthy and solid financial position, we are well positioned to pursue our growth strategy by constantly introducing innovations to meet customer needs and anticipate their expectations and seizing acquisition opportunities that meet our criteria. Our innovation and acquisition strategies remain our two main drivers for long-term growth and value creation," concluded Mr. Lord.
ANALYSIS OF OPERATING RESULTS FOR THE THIRD QUARTER AND FIRST NINE MONTHS ENDED AUGUST 31, 2020, COMPARED TO THE THIRD QUARTER AND FIRST NINE MONTHS ENDED AUGUST 31, 2019
Third-quarter consolidated sales amounted to $311.2 million, compared to $269.2 million for the corresponding quarter of 2019, an increase of $42.0 million or 15.6%, of which 6.9% from an internal growth and 8.7% from acquisitions. It should be noted that this quarter had one additional business day than the third quarter of 2019. At comparable exchange rates to the third quarter of 2019, consolidated sales increase would have been 15.0% for the quarter ended August 31, 2020.
Richelieu achieved sales of $246.5 million in the manufacturers market, compared to $233.8 million for the third quarter of 2019, an increase of $12.7 million or 5.4%, of which 0.9% from an internal growth and 4.5% from acquisitions. Sales to hardware retailers and renovation superstores stood at $64.7 million, up $29.3 million or 82.8% over the third quarter of 2019, of which 46.3% from internal growth and 36.5% from acquisitions. This substantial increase in sales is attributable to the favourable fallout from strong demand in the renovation market in the context of the COVID-19 pandemic.
In Canada, Richelieu recorded sales of $203.0 million, an increase of $23.1 million or 12.8% over the third quarter of 2019, of which 8.2% from internal growth and 4.6% from acquisitions. Sales to manufacturers amounted to $154.3 million, compared to $148.1 million for the third quarter of 2019, an increase of 4.2%, of which 1.1% from an internal growth and 3.1% from acquisitions. Sales to hardware retailers and renovation superstores reached $48.7 million, up $16.8 million or 52.7% over the corresponding quarter of 2019, of which 40.7% from an internal growth and 12.0% from acquisitions. This significant increase is the result of major growth in the renovation market in Canada as well as higher cyclical sales than in the corresponding quarter of 2019.
In the United States, sales totalled US$80.6 million, compared to US $67.5 million for the third quarter of 2019, up US$13.1 million or 19.3%, of which 2.7% from internal growth and 16.6% from acquisitions. Sales to manufacturers amounted to US$68.7 million, compared to US$64.8 million, an increase of 6.0% over the third quarter of 2019, of which 7.1% growth from acquisitions and 1.1% from internal decrease. Sales in US$ to hardware retailers and renovation superstores reached $11.9 million, compared to $2.7 million for the corresponding quarter of 2019, an increase of $9.2 million, up 340.7% from the corresponding quarter of 2019, including 93.3% from an internal growth and 247.4% from acquisitions. As in Canada, the renovation market in the United States has been growing strongly, resulting in a major increase in sales in this market. The Company also benefited in the quarter from higher cyclical sales compared to those achieved during the corresponding period of 2019. Total U.S. sales in Canadian dollars stood at $108.2 million, compared to $89.3 million year over year, an increase of 21.1%. They accounted for 34.8% of consolidated sales for the third quarter of 2020, compared to 33.2% of consolidated sales for the third quarter of 2019.
For the first nine months, consolidated sales reached $808.8 million, an increase of $32.1 million or 4.1% over the first nine months of 2019, of which 7.4% growth from acquisitions and 3.3% from internal decrease. At comparable exchange rates to the first nine months of 2019, consolidated sales increase would have been 3.6%.
Sales to manufacturers reached $663.9 million, compared to $664.4 million for the first nine months of 2019, a decrease of $0.5 million or 0.1%, of which 4.5% growth from acquisitions and 4.6% from internal decrease. Sales to hardware retailers and renovation superstores grew by 29.0% or $32.6 million to total $144.9 million.
In Canada, Richelieu recorded sales of $514.9 million, compared to $506.7 million for the first nine months of 2019, up by $8.2 million or 1.6%, of which 4.8% growth from acquisitions and 3.2% from internal decrease. Sales to manufacturers reached $406.4 million, down by $11.5 million or 2.8%, of which 4.1% growth from acquisitions and 6.9% from internal decrease. Sales to hardware retailers and renovation superstores reached $108.5 million, compared to $88.8 million, up $19.7 million or 22.2% over the first nine months of 2019.
In the United States, the Corporation recorded sales of US$217.4 million, compared to US$202.8 million for the first nine months of 2019, an increase of US$14.6 million or 7.2%, of which 11.9% growth from acquisitions and 4.7% from internal decrease. Sales to manufacturers totalled US$190.4 million, compared to US$185.1 million, an increase of US$5.3 million or 2.9% over the first nine months of 2019, of which 5.2% resulted from acquisitions and 2.3% from internal decrease. Sales to hardware retailers and renovation superstores were up 52.5% from the corresponding period of 2019. Total U.S. sales in Canadian dollars amounted to $293.9 million, compared to $270.0 million for the corresponding nine months of 2019, an increase of 8.8%. They accounted for 36.3% of consolidated sales for the first nine months of 2020, compared to 34.8% of the period consolidated sales for the first nine months of 2019.
Third quarter earnings before income taxes, interest and amortization ("EBITDA") reached $49.1 million and was up $15.2 million or 44.8% over the third quarter of 2019, resulting from significant increase in sales in the retailers market together with actions to reduce costs and government subsidies. Gross margin remained stable from the third quarter of 2019. EBITDA margin stood at 15.8%, compared to 12.6% for the corresponding quarter of 2019.
Amortization expense for the third quarter of 2020 amounted to $8.8 million, up $1.2 million compared to the corresponding quarter of 2019. Income tax expense amounted to $10.8 million, up $3.8 million from the third quarter of 2019. Financial costs amounted to $0.6 million.
For the first nine months earnings before income taxes, interest and amortization ("EBITDA") totalled $107.7 million, up $18.5 million or 20.8% over the first nine months of 2019. The gross margin remained stable with the corresponding nine-month period of 2019. As for the EBITDA margin, it stood at 13.3%, compared to 11.5% for the first nine months of 2019 as a result of cost control measures.
Amortization expense for the first nine months of 2020 amounted to $25.3 million, up $3.9 million compared to the same period of 2019, resulting from the increase in the amortization of intangible assets and right-to-use assets mainly relating to business acquisitions made in fiscal 2019 and in 2020. Income tax expense amounted to $22.0 million, up $4.1 million from the first nine months of 2019. Financial costs amounted to $2.1 million for the first nine months of 2020.
Third quarter net earnings grew 56.3%. Including non-controlling interests, net earnings attributable to shareholders of the Corporation amounted to $28.7 million, up 56.6% over the third quarter of 2019. Net earnings per share amounted to $0.51 basic and $0.50 diluted, compared to $0.32 basic and diluted for the third quarter of 2019, an increase of 59.4%.
Comprehensive income amounted to $20.9 million, including a negative adjustment of $7.9 million on translation of the financial statements of the United States subsidiary, compared to $16.0 million for the third quarter of 2019, including a negative adjustment of $2.4 million on translation of the financial statements of the United States subsidiary.
For the first nine months, net earnings increased 22.8%. Including non-controlling interests, net earnings attributable to shareholders of the Corporation totalled $58.1 million, up 22.8% over the corresponding nine months of 2019. Net earnings per share amounted to $1.03 basic and diluted, compared to $0.83 basic and diluted for the first nine months of 2019.
Comprehensive income totalled $55.6 million, including a negative adjustment of $2.8 million on translation of the financial statements of the United States subsidiary, compared to $47.5 million for the first nine months of 2019, including a negative adjustment of $0.1 million on translation of the financial statements of the United States subsidiary.
FINANCIAL POSITION
Analysis of principal cash flows for the third quarter and first nine months ended August 31, 2020
Operating activities
Third quarter cash flows from operating activities (before net change in working capital balances) amounted to $38.1 million or $0.67 per share diluted, an increase of 43.8%, compared to the corresponding quarter of 2019, stemming primarily from the net earnings growth and increased amortization. Net change in non-cash working capital balances represented a cash inflow of $16.0 million, reflecting the change in inventory and accounts payable (including income taxes) of $30.3 million, whereas the change in accounts receivable and other items used cash flows of $14.3 million. Note that the Corporation had chosen to postpone certain payments as proposed by the relief measures implemented by some government agencies in Canada in response to the COVID-19 pandemic. Consequently, operating activities provided cash flows of $54.0 million, compared to $47.4 million in the third quarter of 2019.
For the first nine months, cash flows from operating activities (before net change in working capital balances) reached $84.9 million or $1.50 per share diluted, compared to $70.1 million or $1.22 per share diluted for the first nine months of 2019, an increase of 21.2%. Net change in non-cash working capital balances represented a cash inflow of $27.3 million primarily representing changes in inventories, accounts payable (including income taxes) and other items of $37.2, whereas accounts receivable used cash flows of $9.9 million. Consequently, operating activities provided cash flows of $112.2 million, compared to $64.7 million for the first nine months of 2019.
Financing activities
Third quarter financing activities used cash flows of $9.2 million, compared to $11.6 million for the third quarter of 2019. The Corporation repaid long-term debt of $4.5 million, paid lease obligations of $3.8 million and issued shares for $2.9 million, compared to a long-term debt repayment of $0.2 million, lease obligations payments of $3.1 million and a $0.2 million share issue in the third quarter of 2019. Dividends paid to shareholders of the Corporation amounted to $3.8 million, up 4.2% over the corresponding quarter of 2019. The Corporation also repurchased common shares for an amount of $4.9 million in the third quarter of 2019, while it had not made any share repurchases during the third quarter of 2020.
For the first nine months, financing activities used cash flows of $19.9 million, compared to $29.1 million in the first nine months of 2019. The Corporation repaid long-term debt of $5.0 million, paid lease obligations of $11.0 million and issued shares for $3.9 million, compared to a long-term debt repayment of $0.2 million, lease obligations payments of $9.1 million and a $0.7 million share issue in 2019. Dividends paid to shareholders of the Corporation amounted to $7.5 million compared to $10.8 million in the same period of 2019. The corporation also repurchased common shares for an amount of $9.4 million in the first nine months of 2019, while it had not made any share repurchases in 2020.
Investing activities
Third quarter investing activities represented a cash outflow of $12.9 million, of which 9.7 million for the business acquisitions made during the current quarter and $3.2 million primarily for the purchase of new equipment to maintain and improve operational efficiency.
For the first nine months, investing activities represented a total cash outflow of $42.3 million, comprising $33.1 million for the five business acquisitions made during the current period of nine months ended August 31 and $9.2 million primarily for the purchase of new equipment to maintain and improve operational efficiency, including the addition of IT licenses.
Sources of financing
As at August 31, 2020, cash and cash equivalents amounted to $74.5 million, compared to $24.7 million as at November 30, 2019. This change reflects the net income growth and the increase in income taxes payable that have been deferred following the relief measures proposed by some government agencies in Canada. The Corporation posted working capital of $376.2 million for a current ratio of 3.6:1, compared to $335.5 million (current ratio of 4.1:1) as at November 30, 2019.
Richelieu believes it has the capital resources to fulfil its ongoing commitments and obligations and to assume the funding requirements needed for its growth, financing, and investing activities between now and the end of fiscal 2020. The Corporation has an authorized line of credit of $65 million as well as a line of credit of US$6 million renewable annually and bearing interest at prime and base rates respectively. In addition, Richelieu considers it could obtain access to other outside financing, if necessary.
Analysis of financial position as at August 31, 2020
Assets
Total assets amounted to $761.3 million as at August 31, 2020, compared to $672.1 million as at November 30, 2019, an increase of 13.3%. Current assets increased by 16.6% or $73.7 million from November 30, 2019. Non-current assets rose 6.8%. These increases result mainly from business acquisitions made during the current fiscal year.
The Corporation continues to benefit from a healthy and solid financial position. As at August 31, 2020, total debt was $6 million, representing mainly balances payable on acquisitions.
Equity attributable to shareholders of the Corporation totalled $551.6 million as at August 31, 2020, compared to $498.4 million as at November 30, 2019, an increase of $53.2 million stemming primarily from growth of $50.6 million in retained earnings which amounted to $481.9 million, and $5.4 million in share capital and contributed surplus, whereas accumulated other comprehensive income was down $2.8 million. As at August 31, 2020, book value per share was $9.76, up 10.2% over November 30, 2019.
As at August 31, 2020, at market close, the Corporation's share capital consisted of 56,486,005 common shares [56,240,030 shares as at November 30, 2019]. Weighted average of diluted outstanding shares for the three- and nine-month periods ended August 31, 2020, were 56,770,000 and 56,582,000 [2019 - 57,186,000 and 57,278,000]. During the first nine months of 2020, the Corporation issued 245,975 common shares at an average exercise price of $15.94 [113,275 in fiscal 2019 at an average exercise price of $10.92] upon the exercise of stock options under its stock option plan. As at August 31, 2020, 1,786,600 stock options were outstanding [1,770,700 as at November 30, 2019].
Dividends
On October 8, 2020, the Board of Directors approved the payment of a quarterly dividend of 6.67¢ per share to shareholders of record as at October 22, 2020, payable on November 5, 2020. The declared dividend is designated as an eligible dividend within the meaning of the Income Tax Act (Canada).
PROFILE AS AT AUGUST 31, 2020
Richelieu is a leading North American distributor, importer and manufacturer of specialty hardware and complementary products. Its products are targeted to an extensive customer base of kitchen and bathroom cabinet, storage and closet, home furnishing and office furniture manufacturers, residential and commercial woodworkers, door and window, and hardware retailers including renovation superstores. Richelieu offers customers a broad mix of high-end products sourced from manufacturers worldwide. Its product selection consists of over 130,000 different items targeted to a base of more than 90,000 customers who are served by 84 centers in North America – 41 distribution centers in Canada, 41 in the United States and two manufacturing plants in Canada, specifically Cedan Industries Inc. which specializes in the manufacturing of a wide variety of veneer sheets and edgebanding products and Menuiserie des Pins Ltée which manufactures components for the window and door industry and a broad selection of decorative mouldings.
Notes to readers — Richelieu uses earnings before interest, income taxes and amortization ("EBITDA") because this measure enables management to assess the Corporation's operational performance. This measure is a financial indicator of a corporation's ability to service its debt. However, EBITDA should not be considered by an investor as an alternative to operating income, net earnings, cash flows or as a measure of liquidity. Because EBITDA is not a standardized measurement as prescribed by IFRS, it may not be comparable to the EBITDA of other companies. Richelieu also uses adjusted cash flows from operating activities, which are based on net earnings plus amortization, deferred tax expense (or recovery) and share-based compensation expense. These additional measures do not account for net change in non-cash working capital items to exclude seasonality effects and are used by management in its assessments of cash flows from long-term operations. Therefore, adjusted cash flows from operating activities may not be comparable to those of other companies. Certain statements set forth in this report (generally identified by terms such as "may", "could", "might", "intend", "expect", "believe", "estimate" or comparable variants) constitute forward-looking statements which, by their very nature, remain subject to other risks and uncertainties as set forth in the Corporation's annual and quarterly reports. Although management considers these assumptions and expectations reasonable based on the information available at the time they are provided, such assumptions and expectations could prove inaccurate and actual results could differ materially. Richelieu is under no obligation to update or revise any forward-looking statements made herein to account for future events or circumstances, except as required by applicable legislation.
COVID – 19 Update — The following is an update to the risks or uncertainties facing the Corporation since that date. The Corporation continues to closely monitoring the evolution of the COVID-19 situation. The Corporation has suspended all travel and taken active steps to implement physical distancing and other measures recommended by public health agencies. COVID-19 is altering business and consumer activity in affected areas and beyond. Additional measures may be implemented by one or more governments in jurisdictions where the Corporation operates. Labour shortages due to illness, Corporation or government imposed isolation programs, or restrictions on the movement of personnel or possible supply chain disruptions could result in a reduction of the Corporation's operations. The extent to which COVID-19 and any other pandemic or public health crisis impacts the Corporation's business, affairs, operations, financial condition, liquidity, availability of credit and results of operations will depend on future developments that are highly uncertain and cannot be predicted with any meaningful precision, including new information which may emerge concerning the severity of the COVID-19 virus and the actions required to contain the COVID-19 virus or remedy its impact, among others. Potential impacts include, but are not limited to, an impairment of long-lived assets and a change in the estimated credit loss on accounts receivable. Any of these developments, and others, could have a material adverse effect on our business, financial condition, operations and results of operations. The Corporation is constantly evaluating the situation and monitoring any impacts or potential impacts to its business.
OCTOBER 8, 2020, CONFERENCE CALL AT 2:30 P.M. (EASTERN TIME) |
Financial analysts and investors interested in participating in the conference call on Richelieu's results to be held at 2:30 p.m. on October 8, 2020, may dial 1-888-390-0546 a few minutes before the start of the call. For those unable to participate, a taped rebroadcast will be available as of 5:45 p.m. on October 8, 2020, until midnight on October 15, 2020, by dialling 1-888-390-0541, access code: 389692 #. Members of the media are invited to listen in.
Photos are available under "About Richelieu" – "Media" section at www.richelieu.com |
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION | |||
[In thousands of dollars] | As at | As at | |
$ | $ (Restated 1) | ||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | 74,491 | 24,701 | |
Accounts receivable | 156,494 | 137,589 | |
Income taxes receivable | — | 1,336 | |
Inventories | 283,009 | 275,154 | |
Prepaid expenses | 5,075 | 6,565 | |
519,069 | 445,345 | ||
Non-current assets | |||
Property, plant and equipment | 40,671 | 41,309 | |
Intangible assets | 42,708 | 35,383 | |
Right-of-use assets | 65,951 | 63,642 | |
Goodwill | 86,486 | 80,164 | |
Deferred taxes | 6,452 | 6,303 | |
761,337 | 672,146 | ||
LIABILITIES AND EQUITY | |||
Accounts payable and accrued liabilities | 106,668 | 90,140 | |
Income taxes payable | 15,233 | — | |
Current portion of long-term debt | 3,789 | 5,659 | |
Current portion of lease obligation | 17,207 | 14,079 | |
142,897 | 109,878 | ||
Non-current liabilities | |||
Long-term debt | 2,200 | — | |
Lease obligation | 53,124 | 53,274 | |
Deferred taxes | 6,507 | 5,553 | |
Other liabilities | 1,798 | 1,820 | |
206,526 | 170,525 | ||
Equity | |||
Share capital | 47,029 | 42,190 | |
Contributed surplus | 6,254 | 5,700 | |
Retained earnings | 481,932 | 431,313 | |
Accumulated other comprehensive income | 16,353 | 19,181 | |
Equity attributable to shareholders of the Corporation | 551,568 | 498,384 | |
Non-controlling interests | 3,243 | 3,237 | |
554,811 | 501,621 | ||
761,337 | 672,146 | ||
(1) The comparative figures have been restated following the adoption of IFRS16 on December 1, 2019. Refer to note 2 of the interim consolidated financial statements for the period ended August 31, 2020 for more details on the adoption of this new standard |
CONSOLIDATED STATEMENTS OF EARNINGS | |||||||
[In thousands of dollars, except earnings per share] [Unaudited] | |||||||
For the three months | For the nine months | ||||||
2020 | 2019 | 2020 | 2019 | ||||
$ | $ (Restated) | $ | $ (Restated) | ||||
Sales | 311,171 | 269,243 | 808,825 | 776,661 | |||
Operating expenses excluding amortization | 262,088 | 235,353 | 701,089 | 687,464 | |||
Earnings before amortization, financial costs and income taxes | 49,083 | 33,890 | 107,736 | 89,197 | |||
Amortization of property, plant and equipment and right-of-use assets | 6,998 | 6,174 | 20,188 | 17,649 | |||
Amortization of intangible assets | 1,826 | 1,440 | 5,099 | 3,732 | |||
Financial costs, net | 645 | 872 | 2,086 | 2,435 | |||
9,469 | 8,486 | 27,373 | 23,816 | ||||
Earnings before income taxes | 39,614 | 25,404 | 80,363 | 65,381 | |||
Income taxes | 10,800 | 6,974 | 21,972 | 17,828 | |||
Net earnings | 28,814 | 18,430 | 58,391 | 47,553 | |||
Net earnings attributable to: | |||||||
Shareholders of the Corporation | 28,651 | 18,291 | 58,130 | 47,324 | |||
Non-controlling interests | 163 | 139 | 261 | 229 | |||
28,814 | 18,430 | 58,391 | 47,553 | ||||
Net earnings per share attributable to shareholders of the Corporation | |||||||
Basic | 0.51 | 0.32 | 1.03 | 0.83 | |||
Diluted | 0.50 | 0.32 | 1.03 | 0.83 | |||
(1) The comparative figures have been restated following the adoption of IFRS16 on December 1, 2019. Refer to note 2 of the interim consolidated financial statements for the period ended August 31, 2020 for more details on the adoption of this new standard. |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||
[In thousands of dollars] [Unaudited] | |||||||
For the three months | For the nine months | ||||||
2020 | 2019 | 2020 | 2019 | ||||
$ | $ (Restated) | $ | $ (Restated) | ||||
Net earnings | 28,814 | 18,430 | 58,391 | 47,553 | |||
Other comprehensive income that will be reclassified to net earnings | |||||||
Exchange differences on translation of foreign operations | (7,930) | (2,420) | (2,828) | (69) | |||
Comprehensive income | 20,884 | 16,010 | 55,563 | 47,484 | |||
Comprehensive income attributable to: | |||||||
Shareholders of the Corporation | 20,721 | 15,871 | 55,302 | 47,255 | |||
Non-controlling interests | 163 | 139 | 261 | 229 | |||
20,884 | 16,010 | 55,563 | 47,484 | ||||
(1) The comparative figures have been restated following the adoption of IFRS16 on December 1, 2019. Refer to note 2 of the interim consolidated financial statements for the period ended August 31, 2020 for more details on the adoption of this new standard. |
CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
[In thousands of dollars] [Unaudited] | For the three months | For the nine months | |||||
2020 | 2019 | 2020 | 2019 | ||||
$ | $ (Restated) | $ | $ (Restated) | ||||
OPERATING ACTIVITIES | |||||||
Net earnings | 28,814 | 18,430 | 58,391 | 47,553 | |||
Items not affecting cash | |||||||
Amortization of property, plant and equipment and right-of-use assets | 6,998 | 6,174 | 20,188 | 17,649 | |||
Amortization of intangible assets | 1,826 | 1,440 | 5,099 | 3,732 | |||
Deferred taxes | (66) | (131) | (227) | (222) | |||
Share-based compensation expense | 491 | 557 | 1,472 | 1,381 | |||
38,063 | 26,470 | 84,923 | 70,093 | ||||
Net change in non-cash working capital balances | 15,965 | 20,898 | 27,287 | (5,422) | |||
54,028 | 47,368 | 112,210 | 64,671 | ||||
FINANCING ACTIVITIES | |||||||
Repayment of long-term debt | (4,509) | (190) | (4,991) | (190) | |||
Dividends paid to Shareholders of the Corporation | (3,757) | (3,606) | (7,511) | (10,830) | |||
Payment of principal portion of lease obligations | (3,848) | (3,072) | (11,020) | (9,129) | |||
Other dividends paid | — | — | (277) | (193) | |||
Common shares issued | 2,872 | 150 | 3,921 | 678 | |||
Common shares repurchased for cancellation | — | (4,874) | — | (9,386) | |||
(9,242) | (11,592) | (19,878) | (29,050) | ||||
INVESTING ACTIVITIES | |||||||
Business acquisitions | (9,676) | — | (33,074) | (20,788) | |||
Additions to property, plant and equipment and intangible assets | (3,216) | (3,340) | (9,248) | (7,627) | |||
(12,892) | (3,340) | (42,322) | (28,415) | ||||
Effect of exchange rate changes on cash and cash equivalents | 35 | 115 | (220) | 184 | |||
Net change in cash and cash equivalents | 31,929 | 32,551 | 49,790 | 7,390 | |||
Cash and cash equivalents (bank overdraft), beginning of period | 42,562 | (17,753) | 24,701 | 7,408 | |||
Cash and cash equivalents end of period | 74,491 | 14,798 | 74,491 | 14,798 | |||
(1) The comparative figures have been restated following the adoption of IFRS16 on December 1, 2019. Refer to note 2 of the interim consolidated financial statements for the period ended August 31, 2020 for more details on the adoption of this new standard. |
SOURCE Richelieu Hardware Ltd.
Richard Lord, President and Chief Executive Officer; Antoine Auclair, Vice-President and Chief Financial Officer; Tel: (514) 336-4144, www.richelieu.com
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