2008 retail sales up 5.3%; adjusted net earnings for the year down 2.2%
Quarterly dividend payments continue at $0.21 per share
TORONTO, Feb. 12 /CNW/ - Canadian Tire Corporation, Limited (CTC, CTC.a)
today released its unaudited fourth quarter earnings and year-end results.
Despite challenging market conditions, the Company reported an increase of
6.8% in retail sales in the fourth quarter compared to the same period in
2007, reflecting strong sales of seasonal merchandise, improvements in
pricing, promotional programs and an extra sales week.
"Our fourth quarter operating results demonstrate the unique positioning
and strength of our retail offering," said Stephen Wetmore, president and CEO,
Canadian Tire Corporation. "We enter the new year well-positioned to adapt to
and respond to the changing Canadian economy."
----------------------------------------------------------
Consolidated 2008(2) Year-over- 2008(2) Year-over-
Highlights(1): 4th quarter year change full year year change
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Retail sales $ 3.2 billion 6.8% $ 10.6 billion 5.3%
Gross operating
revenue $ 2.6 billion 3.3% $ 9.1 billion 6.0%
EBITDA(3) $277.3 million 4.1% $892.7 million 1.3%
Adjusted $192.0 million 2.0% $572.5 million (4.5)%
earnings
before income
taxes (excludes
non-operating
gains and
losses)(4)
Net earnings $101.2 million (22.9)% $374.2 million (9.1)%
Adjusted net $129.9 million (3.0)% $395.3 million (2.2)%
earnings
(excludes
non-operating
gains and
losses)(4)
Basic earnings
per share $ 1.24 (22.9)% $ 4.59 (9.1)%
Adjusted basic
earnings per
share (excludes
non-operating $ 1.59 (3.0)% $ 4.85 (2.2)%
gains and losses)(4)
(1) All dollar figures in this table are rounded.
(2) Fiscal 2008 sales and earnings figures are based on a 14 week period
for the fourth quarter and a 53-week period for the year compared to
13 weeks for the quarter and 52 weeks for the year in 2007.
(3) Earnings before interest, taxes, depreciation and amortization. Non-
GAAP measure. Please refer to Section 12.0 of the 2007 Management's
Discussion and Analysis.
(4) Non-GAAP measure. Please refer to Section 12.0 of the 2007
Management's Discussion and Analysis.
"While our EBITDA for the quarter and the full year grew modestly despite
the impact of increased costs associated with our strategic initiatives, our
net earnings were additionally impacted by non-cash mark-to-market adjustments
on our interest rate hedges discussed below," stated Wetmore.
The table below provides a reconciliation of adjusted net earnings for
the fourth quarter 2008 and for 2008 as a whole.
($ in millions) Q4 2008 Change 2008 Change
-------------------------------------------------------------------------
Net earnings 101.2 (22.9)% $ 374.2 (9.1)%
-------------------------------------------------------------------------
Adjustments:
Executive retirement obligations (4.2) (3.4)
Gain on disposal of property
and equipment 1.9 3.5
Net effect of securitization
activities (7.1) (1.9)
Delayed start interest rate
swaps (19.3) (19.3)
-------------------------------------------------------------------------
Adjusted net earnings 129.9 (3.0%) 395.3 (2.2)%
-------------------------------------------------------------------------
Canadian Tire uses derivative financial instruments, such as hedges and
swaps, to manage financial risks related to interest rate, foreign exchange
and equity-based compensation. As at January 3, 2009, long-term delayed start
interest rate swaps, which had been put in place 10 years ago to manage the
Company's long-term interest expense by fixing interest rates at a then
attractive rate, now no longer meet the requirements for hedge accounting and
accordingly $19.3 million after-tax was expensed in the fourth quarter.
The Company has a number of additional financial instruments in place. At
year end, on a mark-to-market basis, the value of these items was a net in the
money position of approximately $177.8 million. This amount is substantially
included in the Accumulated Other Comprehensive Income ("AOCI") section of the
Company's Unaudited Consolidated Balance Sheet. The most significant item
included in AOCI is in the money foreign exchanges hedges, which total $149.5
million pre-tax. In the absence of a material strengthening of the Canadian
dollar versus the US dollar, this gain will positively impact the cost of
inventory purchases during the next six to nine months.
The remaining mark-to-market adjustments on hedges that do not qualify
for hedge accounting have been reflected in operating earnings.
Wetmore noted that "in a year that became more challenging with each
successive quarter, CTC delivered growth across virtually all of its
businesses in the fourth quarter and for the full year in 2008."
Highlights of top-line performance by business
(year-over-year percentage change) Q4 2008 2008
-------------------------------------------------------------------------
CTR retail sales(1) 9.1% 3.8%
CTR gross operating revenue 3.3% 3.6%
CTR net shipments 3.0% 3.5%
Mark's retail sales 5.9% 3.5%
Petroleum retail sales (3.5)% 12.2%
Petroleum gasoline volume 4.1% (0.6)%
Financial Services' credit card sales 1.4% 6.7%
Financial Services' gross average receivables 6.6% 7.2%
-------------------------------------------------------------------------
(1) Includes sales from Canadian Tire stores, PartSource stores, sales
from CTR's online web store and the labour portion of CTR's auto
service sales.
Business Overview
CANADIAN TIRE RETAIL (CTR)(1)
($ in millions) Q4 Q4
2008 2007(2) Change 2008 2007(2) Change
-------------------------------------------------------------------------
Retail
sales(3) $ 2,364.2 $ 2,166.2 9.1% $ 7,617.8 $ 7,338.0 3.8%
Same store
sales(4)
(year-over-year
% change) 7.3% (1.8)% 1.8% (0.5)%
Gross operating
revenue $ 1,636.4 $ 1,583.7 3.3% $ 5,669.1 $ 5,473.5 3.6%
Net shipments
(year-over-year
% change) 3.0% 0.4% 3.5% 2.3%
Earnings before
income taxes $ 26.6 $81.0 (67.1)% $ 249.2 $ 302.4 (17.6)%
-------------------------------------------------------------------------
Adjustments:
Gain on disposals
of property and
equipment(5) 3.7 7.3 7.4 17.6
Executive
retirement
obligations (6.2) 0.3 (5.1) (6.2)
Delayed start
interest
rate swaps (28.7) - (28.7) -
-------------------------------------------------------------------------
Adjusted
earnings
before
income
taxes(6) $ 57.8 $ 73.4 (21.3)% $ 275.6 $ 291.0 (5.3)%
-------------------------------------------------------------------------
(1) Fiscal 2008 sales and earnings figures are based on a 14-week period
for the fourth quarter and a 53-week period for the year compared to
13-weeks for the quarter and 52-weeks for the year in 2007.
(2) 2007 figures have been restated for the implementation, on a
retrospective basis, of the CICA HB 3031- Inventories. Please refer
to note 2 in the Consolidated Financial Statements
(3) Includes sales from Canadian Tire stores, PartSource stores, sales
from CTR's online web store and the labour
portion of CTR's auto service sales.
(4) Same store sales include sales from stores that have been open for
more than 53 weeks in the same location.
(5) Includes fair market value adjustments and impairments on property
and equipment.
(6) Non-GAAP measure. Please refer to section 12.0 in the 2007
Management's Discussion and Analysis.
CTR's retail sales increased 9.1% over the same quarter in 2007
reflecting a significant increase in sales of winter-related merchandise in
the quarter, as well as an increase in the kitchen and tools categories.
Overall, same store sales were up 7.3% compared to the fourth quarter of 2007.
Retail sales and same store sales were particularly strong with the addition
of the 53rd trading week in 2008.
Increases in shipment levels were lower than those for retail sales in
the quarter as CTR Dealers sought to manage their inventory levels due to the
expectation of a slowing economy.
CTR's fourth quarter adjusted earnings were $57.8 million, down 21.3%
from the fourth quarter in 2007. The overall margin rate as a percentage of
gross operating revenue for the quarter was consistent year-over-year,
reflecting a number of items, including the benefits of purchasing with hedged
Canadian dollars and higher dealer rents. Adjusted operating earnings were
impacted by additional mark-to-market adjustments on interest rate hedges and
swaps which totaled approximately $8 million; costs associated with CTR's
long- term productivity and efficiency initiatives such as Automotive
Infrastructure, CTR Change Program and IT renewal; and higher advertising and
administrative costs due to the addition of the 53rd trading week.
For the year, retail sales increased 3.8%, while same store sales were up
1.8%. Adjusted earnings before taxes were $275.6 million compared with $291.0
million in 2007. By year end, corporate inventories were at forecasted levels,
but still higher than in 2007 due to spring and summer seasonal carry over
products which will be shipped to CTR Dealers in 2009.
In addition to completing 36 Concept 20/20 projects in 2008, CTR also
launched its new Smart store format in Welland and Orleans, Ontario and opened
four Small Market stores. The two new concepts have been well-received by
customers and are performing above expectations.
In 2008, PartSource acquired 11 new corporate stores, opened 2 new hub
stores, retrofitted 3 existing stores into hub stores and converted 5
franchise stores to corporate stores bringing the total store network to 86.
CANADIAN TIRE PETROLEUM (Petroleum)(3)
Q4 Q4
($ in millions) 2008 2007 Change 2008 2007 Change
-------------------------------------------------------------------------
Sales volume
(millions
of litres) 469.1 450.5 4.1% 1,727.0 1,737.5 (0.6)%
Retail sales $447.0 $463.1 (3.5)% $1,988.1 $1,771.6 12.2%
Gross operating
revenue $414.3 $434.1 (4.6)% $1,871.2 $1,666.5 12.3%
Earnings before
income taxes $6.1 $3.7 66.6% $26.6 $20.5 30.4%
-------------------------------------------------------------------------
Adjustments:
Loss on
disposals of
property and
equipment(1) $(0.2) $(0.7) $(0.5) $(2.7)
-------------------------------------------------------------------------
Adjusted earnings
before income
taxes(2) $6.3 $4.4 43.2% $27.1 $23.2 17.1%
-------------------------------------------------------------------------
(1) Includes asset impairment losses.
(2) Non-GAAP measure. Please refer to section 12.0 of the 2007
Management's Discussion and Analysis
(3) Fiscal 2008 sales and earnings figures are based on a 14-week period
for the fourth quarter and a 53-week for the year compared to 13-week
for the quarter and 52-week for the year in 2007.
Petroleum's gasoline sales volumes rose 4.1% over the comparable period
in 2007; while convenience stores sales increased 13.5% over the fourth
quarter in 2007. Both increases are primarily due to an extra week of sales in
2008.
Petroleum recorded earnings before taxes of $6.1 million, a 66.6%
increase compared to the $3.7 million recorded in the same period in 2007.
For the year, Petroleum posted earnings before taxes of $26.6 million, an
increase of 30.4% over the $20.5 million recorded in 2007. Performance both in
the quarter and for the full year was due to strong margins and effective
expense management.
In addition to opening 9 new gas bars in 2008, Petroleum also rebuilt 3
gas bars and refurbished 21 existing gas bars to enhance the customer
experience and better reflect the Canadian Tire brand. Petroleum now operates
273 gas bars, 266 convenience stores and kiosks and 74 car washes.
MARK'S WORK WEARHOUSE (Mark's)(5)
($ in millions) Q4 Q4
2008 2007(6) Change 2008 2007(6) Change
-------------------------------------------------------------------------
Total
retail
sales(1) $408.4 $385.7 5.9% $1,008.5 974.9 3.5%
Same store
sales(2)
(% increase
over
prior year) 3.9% 1.4% 0.3% 4.8%
Gross operating
revenue(3) $355.7 $326.2 9.0% $872.4 $825.3 5.7%
-------------------------------------------------------------------------
Earnings before
income taxes $71.7 $67.0 7.0% $75.9 $98.0 (22.5)%
-------------------------------------------------------------------------
Adjustments:
Loss on
disposals
of property and
equipment (0.5) (0.2) (0.9) (1.0)
-------------------------------------------------------------------------
Adjusted earnings
before income
taxes(4) $72.2 $67.2 7.4% $76.8 $99.0 (22.4)%
-------------------------------------------------------------------------
(1) Includes retail sales from corporate and franchise stores.
(2) Mark's same store sales exclude new stores, stores not open for the
full period in each year and store closures. A 13 week to 13 week
comparison would produce a (0.3%) same store sales decrease in the
fourth quarter and a 52 week to 52 week comparison would produce a
(1.4%) same stores sales decrease for the year.
(3) Gross operating revenue includes retail sales at corporate stores
only.
(4) Non-GAAP measure. Please refer to section 12.0 of the 2007
Management's Discussion and Analysis.
(5) Fiscal 2008 sales and earnings figures are based on a 14-week period
for the fourth quarter and a 53 week period for the year, compared to
13 weeks for the quarter in 2007 and 52 weeks for the year in 2007.
(6) 2007 figures have been restated for the implementation on a
retrospective basis of the CICA HB 3031- Inventories. Please refer to
note 2 in the Consolidated Financial Statements
Mark's sales were positively impacted by the severe winter weather in
Canada for the last three weeks of the year, which led to strong sales of
industrial wear. As a result, Mark's fourth quarter retail sales increased by
5.9%, from $385.7 million last year to $408.4 million this year. Adjusted pre-
tax earnings for the quarter increased 7.4% from the comparable period in
2007, reflecting positive same store sales growth, when comparing 14 weeks to
13 weeks, improvements in margins due to improved purchase markup, fewer
markdowns and effective expense management, offset somewhat by a higher shrink
accrual.
Despite a strong fourth quarter, adjusted pre-tax earnings for the year
were down 22.4% from $99.0 million in 2007 to $76.8 million this year, due to
a decline in the gross margin rate caused by the higher shrink of inventory in
the second quarter, flat annual same stores sales when comparing 53 weeks to
52 weeks, and higher expenses associated with new store and infrastructure
additions.
At the end of the year, inventories on hand were well-controlled and down
11.0% on a per square foot basis year-over-year, reflecting conservative
activity on fall merchandise orders, effective markdown management and strong
sell through of industrial winter merchandise.
In 2008, Mark's opened 18 new corporate stores, relocated 11 corporate
stores and one franchise store and expanded 6 corporate stores bringing the
total store network to 372 stores. In addition, Mark's now has three mobile
stores.
CANADIAN TIRE FINANCIAL SERVICES (Financial Services)
Q4 Q4
($ in millions) 2008 2007 Change 2008 2007 Change
-------------------------------------------------------------------------
Total managed
portfolio
end of period $4,120.9 $3,952.2 4.3%
Gross operating
revenue 212.4 190.3 11.6% 820.4 745.9 10.0%
Earnings before
income taxes $45.1 $32.6 38.6% $189.5 $190.3 (0.4)%
-------------------------------------------------------------------------
Adjustments:
Gain on
disposal of shares - - - 18.4
Net effect of
securitization
activities(1) (10.6) (10.6) (2.9) (14.4)
Loss on disposals
of property
and equipment - (0.1) (0.6) (0.4)
-------------------------------------------------------------------------
Adjusted
earnings before
income
taxes(2) $55.7 $43.3 29.0% $193.0 $186.7 3.4%
-------------------------------------------------------------------------
(1) Includes initial gain/loss on the sale of loans receivable,
amortization of servicing liability, change in securitization
reserve and gain/loss on reinvestment.
(2) Non-GAAP measure. Please refer to section 12.0 in the 2007
Management's Discussion and Analysis.
Financial Services' total managed portfolio of loan receivables was $4.1
billion at the end of the fourth quarter, an increase of 4.3% over the
approximate $4.0 billion at the end of the comparable 2007 period. Growth in
receivables slowed during the quarter to well below historical levels due to
lower growth in credit card usage.
The net write-off rate for the total managed portfolio on a rolling 12-
month basis was 6.34% compared to 5.76% in the comparable period. The increase
reflects the impact of deteriorating economic conditions and the associated
higher bankruptcies, as well as the refinement of the treatment of consumer
proposals effective November 2008 which increased the write-off rate by 23
bps.
Financial Services had a very strong fourth quarter with adjusted net
earnings increasing 29.0% from $43.3 million in the comparable period last
year to $55.7 million for the quarter driven by higher revenues and tight
expense management. Fourth quarter earnings were negatively impacted by $2.4
million due to the refinement in the treatment of consumer proposals noted
above.
Financial Services continued its retail banking pilot and at quarter-end
had more than $166 million in high rate savings accounts, $973 million in
total GIC deposits and $139 million in outstanding mortgage balances.
2009 COMMENTARY
OPERATIONS
"While we are very pleased with our momentum coming into 2009,
particularly in our core retail businesses, the year ahead is projected to be
challenging for all retailers, due to the impact of the global economic
slowdown and declining consumer confidence among Canadians," said Wetmore.
Given the unprecedented volatility in the Canadian economy and the
difficulty in assessing the potential magnitude of the impact of the above
conditions on CTC's business, Management will not be providing a specific
earnings per share guidance range for the year. Management will, however,
continue to provide information on its operations, growth and productivity
initiatives, capital plan and liquidity as appropriate throughout the year.
If the Canadian economy and employment continues to be weak, CTC could
experience declining same store sales and margins in its retail businesses,
lower growth in receivables at CTFS as consumers reduce their credit card
usage, higher bankruptcies and write-offs and further increases in funding
costs across its businesses.
CTC is well-positioned, however, in that:
- CTR has extremely strong consumer brands, a loyal customer base and a
wide range of everyday products which are competitively priced and
relevant to a cost-conscious consumer.
- Mark's emphasis on private label products, many of which have added
features and benefits to improve customer satisfaction, has in the
recent past allowed Mark's to continue to grow its business, despite
adverse business conditions.
- Over the last year, Financial Services has taken numerous steps to
reduce its exposure to accounts with higher credit risk.
CTC's focus in 2009 will be based on a balanced approach to maximize
earnings potential through focused growth initiatives, strong expense
management and on-going improvements in financial flexibility, while also
continuing to invest in long-term growth and productivity.
"Canadian Tire is financially strong and is well-positioned to manage
through this economic downturn. We have a solid cash position, manageable debt
levels and despite the potential challenges, we remain confident in our
strategy and will continue to take the prudent actions necessary to ensure
Canadian Tire is well-positioned to take full advantage of the economic
recovery when it comes," Wetmore added.
Key initiatives in 2009 will include:
Growth
Despite the challenging economy, CTC continues to believe it has
significant opportunities to drive long-term growth across each of its retail
businesses. While the level of capital commitment is significantly reduced
from 2008, the following investments reflect continued confidence in the
future potential of the businesses that make up CTC:
- Growth of the CTR, Mark's, Petroleum and PartSource networks,
including ongoing store expansions and upgrades with contemplated
development of up to 40 projects for CTR of which approximately 6
projects will be new to market. Square footage growth in CTR year
over year will be approximately 2% and will be focused on further
testing and expansion of the Smart and Small Market store concepts.
Square footage growth at Mark's will be approximately 5% in 2009
versus 2008.
- Investment in new technology and supply chain infrastructure and the
further development of PartSource stores with expanded warehouses
(hub stores) across Canada to drive growth at CTR and PartSource. In
total, 16 hub stores are expected to be open by the end of 2009.
- At CTFS selected investment in balance transfer offers, leverage of
the relaunched credit cards with PayPass capability and the launch of
new credit cards to drive managed growth of loan receivables.
Productivity and Efficiency Initiatives
CTC plans to continue with its long-term productivity and efficiency
investments. On a net basis, including benefits, these programs are expected
to cost approximately $44.0 million in 2009. The programs include:
- The Automotive Infrastructure program is designed to support the
growth of CTR's automotive business, as well as the growth of the
PartSource chain of stores. The program, which will be fully
implemented by 2011, will make auto parts more accessible to the
customer, broaden and optimize the automotive parts assortment, as
well as improve the customer experience by leveraging improvements of
in-store technology and processes. The program will provide
significant top and bottom line benefits for CTR, PartSource and
Dealers as the various phases of the program are deployed over the
next several years.
- The CTR Change Program represents a significant investment in new
systems, together with major changes in processes and organizational
structures, which will streamline major merchandising and marketing
capabilities within CTR. For example: price management, promotional
planning, vendor relationship management, assortment and markdown
management.
- IT renewal represented by a multi-year program designed to upgrade
the technology infrastructure which supports CTR, Petroleum and
PartSource. Renewal will provide increased functionality, reduced
risk, lower operating costs and a simplified overall architecture.
- A variety of smaller projects, all designed to manage compliance risk
or to lower operating costs and provide business units with enhanced
functionality for improved decision-making.
OPERATING EXPENSES
Early in 2009, CTR's new 1.5 million square foot distribution centre in
Coteau du Lac will open on time and on budget. This new facility will support
future sales growth at CTR and enable the closing of two much smaller third
party facilities in Montreal and Toronto. Net annualized incremental costs
upon opening the facility are estimated at $35.9 million pre-tax. Over the
next several years, the throughput volume of this facility will increase and
with improving productivity and declining depreciation charges, this
incremental cost will be largely mitigated.
CAPITAL
Total projected capital expenditures for 2009 will be in the range of
$380 million to $400 million, (down from 2008 expenditures of approximately
$472 million) the majority of which will support store and network expansions.
As of the date of this release, only $150 million of the 2009 planned
expenditures has been committed. Management will look for every opportunity to
manage this capital in the most effective way, including spending lower
amounts if considered appropriate.
FUNDING AND LIQUIDITY
Overall, CTC was very active in 2008 in securing various funding sources
to support the Company's on-going growth. As the year progressed and
traditional sources of financing such as the Medium Term Note ("MTN") program
and securitization were not available, CT Bank developed a new cost effective
funding source through broker deposits and by the year end had secured a
balance of $973 million in total GIC deposits with an average term of 30
months. In addition, high rate savings accounts provided an additional $166
million of funding.
Like all companies, CTC has been exposed to significantly higher bank
fees as banks re-price the cost of financing. CTC will continue to look for
cost-effective sources of funding despite the credit markets being "frozen"
for a number of typical sources of financing. While CTC has no concerns about
its ability to fund its operations in 2009 and beyond, financing will clearly
come at a significantly increased cost. Given the unprecedented volatility in
the financial markets, CTC will be conservative in that it will ensure it has
more than sufficient access to liquidity, even if it comes at the expense of
short-term profitability.
For 2009, no corporate debt maturities are scheduled, but late in the
year, term notes at Glacier Credit Card Trust of $625 million will mature
which will result in a corresponding increase in receivables at Financial
Services, unless the notes are re-financed.
Working capital optimization will continue to be a focus, building on the
positive trends exhibited late in 2008 at both CTR and Mark's. Inventory
reduction in particular will be a focus for CTR as on-hand seasonal carry-over
product is flowed to CTR stores during the spring and summer season.
To meet the operating and capital demands of 2009, management expects to
have available:
- Operating cash flow
- Further broker deposits
- High rate savings receipts
- Committed bank lines
As of January 3rd, 2009, CTC had $1.22 billion in committed lines of
credit of which $775 million will be increased in term to two years, with
annual renewals, subject only to the completion of legal documentation, which
is expected by the end of February. The balance of the lines are committed
until early 2010 and are typically extended on a quarterly basis thereafter.
Management will continue to monitor market conditions and consider the
following actions to lock down longer-term financing, as it warrants:
- Securitization of receivables
- Corporate MTNs
- Sale and leaseback of selected CTR store properties
Short-term funding needs will be met through corporate and Glacier CP
programs.
Overall, Management is very confident that it has sufficient liquidity to
support its funding requirements throughout 2009.
DIVIDENDS
The Board of Directors today declared a quarterly dividend paymentof 21
cents per share, unchanged from the amount paid in the last quarter of 2008,
which will be paid on June 1, 2009 to shareholders of record as of April 30,
2009. These dividends are considered "eligible dividends" for tax purposes.
Canadian Tire's policy is to maintain dividend payments equal to
approximately 15 to 20% of the prior year's normalized basic net earnings per
share, after giving consideration to the period end cash position, future cash
requirements, market conditions and investment opportunities. Normalized net
earnings per share for this purpose exclude gains and losses on the sale of
credit card and loans receivable and non-recurring items but include gains and
losses on the ordinary course disposition of property and equipment.
FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements. These forward-looking
statements relate to, among other things, our objectives, goals, strategies,
intentions, plans, beliefs, expectations and estimates, and can generally be
identified by the use of words such as "may", "will", "could", "should",
"would", "suspect", "outlook", "expect", "intend", "estimate", "anticipate",
"believe", "plan", "forecast", "objective" and "continue" (or the negative
thereof) and words and expressions of similar import, and include statements
concerning possible or assumed future results. Certain material factors or
assumptions are applied in making forward-looking statements, and actual
results may differ materially from those expressed or implied in such
statements. Information about material factors that could cause actual results
to differ materially from expectations and about material factors or
assumptions applied in making forward-looking statements may be found in the
body of this document, as well as in the 2007 Management's Discussion and
Analysis ("MD&A").
The forward-looking information contained in this earnings release is
presented for the purpose of assisting the Company's security holders and
financial analysts in understanding its financial position and results of
operations as at and for the periods ended on the dates presented and the
Company's strategic priorities and objectives, and may not be appropriate for
other purposes.
