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North West Company declares $0.28 dividend

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Staff writer ▼ | June 6, 2013
The North West Company reported its unaudited results for Q1 2013. Sales were relatively flat at $364.5 million and the board have declared a dividend of $0.28 per share.
North West Company
North West CompanyThe North West Company reported its unaudited results for Q1 2013. Sales were relatively flat at $364.5 million and the board have declared a dividend of $0.28 per share.


The North West Company is a retailer of food and everyday products and services to rural communities and urban neighbourhoods in Canada, Alaska, the South Pacific and the Caribbean.

Sales were relatively flat at $364.5 million compared to a 5.6% increase to $365.5 million in the first quarter last year as sales growth in International Operations was offset by lower sales in Canadian Operations due to the impact of store closures in the fourth quarter of 2012.

The impact of one extra day of sales last year as a result of February 29 was also a factor. Sales excluding the foreign exchange impact were down 1.1% but were up 0.8% on a same store basis.

Food sales decreased 0.1% but were up 1.5% on a same store basis and general merchandise sales decreased 6.7% and were down 2.5% on a same store basis.

Earnings from Operations increased 0.5% to $20.5 million compared to $20.4 million in the first quarter last year as gross profit rate improvements were partially offset by higher selling, operating and administrative expenses. The gross profit rate improvement is primarily due to better inventory and shrink management and favourable product mix changes.

Selling, operating and administrative expenses increased 1.8% compared to last year and were up 47 basis points as a percentage to sales. This was largely due to expenses related to a new Cost-U-Less store in Barbados and higher share-based compensation costs. The increase in share-based compensation expense is related to a $2.28 per share or 9.9% increase in the share price in the quarter. Excluding the foreign exchange impact, earnings from operations increased 0.1% compared to last year.

Trading profit or earnings before interest, income taxes, depreciation and amortization (EBITDA) increased 0.9% to $30.0 million compared to $29.7 million last year as gains within Canadian Operations more than offset a decrease in the International Operations. Excluding the foreign exchange impact, trading profit increased 0.5% and was 8.3% as a percentage to sales compared to 8.1% last year.

First quarter net earnings decreased 2.5% to $12.9 million and diluted earnings per share were flat to last year at $0.27 per share as earnings growth in the Canadian Operations was more than offset by lower earnings in the International Operations.


 

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