Click here to close now.



Welcome!

News Feed Item

Indigo Reports Q1 Total Revenues up 5.4%

Comp Superstore Sales grow by 8.3%

TORONTO, Aug. 5, 2014 /CNW/ - Indigo Books & Music Inc. (TSX: IDG), Canada's largest book, gift and specialty toy retailer reported 5.4% growth in revenue for its first quarter ended June 28, 2014.

Revenue for the quarter was $180.8 million, up $9.3 million from last year, despite operating five fewer superstores and two fewer small format stores.  On a comparable store basis, Indigo and Chapters superstores posted 8.3% growth, while Coles and IndigoSpirit small format stores grew 1.9%. Sales from Indigo's online channel, indigo.ca, grew by 14.0%.

The increase in revenue was partly driven by a shift in the timing of Easter and the launch of American Girl® specialty boutiques.  The majority of the growth came from underlying business improvement with double-digit increases in lifestyle, paper, and toys.  Books experienced growth in the quarter for the first time since fiscal 2010.

Commenting on the results, CEO Heather Reisman said, "We are pleased to see that our transformational strategy is gaining traction with our customers.  It is encouraging that we are bucking global trends in our industry*. We are especially proud of the brand loyalty we continue to build upon."

The loss before income taxes was $14.0 million for the 13-week period ended June 28, 2014, compared to a loss of $20.9 million for the period ended June 29, 2013.  The improvement of $6.9 million was primarily driven by higher revenues and improved margins. There was no income tax recovery in the period compared to a $5.8 million recovery in the prior year. As a result the Company recognized a net loss of $14.0 million ($0.55 net loss per common share) for this quarter, compared to a net loss of $15.0 million ($0.59 net loss per common share) for the same period last year.

As previously announced, during the quarter, the Company launched the first two American Girl® specialty boutiques outside of the U.S. Customer response to the boutiques, located at the Indigo Yorkdale Mall location, and the Chapters on Robson Street in Vancouver, has been outstanding. As a result, Indigo is excited to announce that it will open an additional American Girl® specialty boutique within its Chapters Rideau store in Ottawa before the crucial Holiday season.

The Indigo Love of Reading Foundation celebrated its 10th anniversary during the quarter and announced that it will once again donate $1.5 million to 20 high-needs elementary schools in an effort to bolster literacy and transform school libraries across the country.  To date the Foundation has committed more than $17.0 million to 1,600 elementary schools in Canada through its Literacy Fund grant and community Adopt a School program.

Analyst/Investor Call

Indigo will host a conference call for analysts and investors to review these results at 5:00 p.m. (Eastern Time) today, August 5th, 2014.  The call can be accessed by dialling 416-764-8688 from within the Toronto area, or 1-888-390-0546 outside of Toronto.  The eight digit participant code is 67210351.

A playback of the call will also be available by telephone until 11:59 p.m. (ET) on August 13th, 2014.  The call playback can be accessed after 6:45 p.m. (ET) on August 5th, 2014, by dialing        416-764-8677 from within the Toronto area, or 1-888-390-0541 outside of Toronto.  The six-digit replay passcode number is 210351.  The conference call transcript will be archived in the Investor Relations section of the Indigo website, www.indigo.ca.

*Data released by the U.S. Census Bureau shows U.S. bookstore sales of -1.3% for April 2014 and -7.5% for May 2014 when compared to the prior year.  For the first five months of calendar 2014, bookstore sales are -8.0%.  June results have not yet been released.

Forward-Looking Statements

Statements contained in this news release that are not historical facts are forward-looking statements which involve risk and uncertainties that could cause results to differ materially from those expressed in the forward-looking statements. Among the key factors that could cause such differences are: general economic, market or business conditions in Canada; competitive actions by other companies; changes in laws or regulations; and other factors, many of which are beyond the control of the Company.

Non-IFRS Financial Measures

The Company prepares its unaudited interim condensed consolidated financial statements in accordance with International Financial Reporting Standards and International Accounting Standards 34, "Interim Financial Reporting."  In order to provide additional insight into the business, the Company has also provided non-IFRS data, including comparative store sales growth, in the press release above. This measure does not have a standardized meaning prescribed by IFRS and is therefore specific to Indigo and may not be comparable to similar measures presented by other companies. Comparative store sales growth is a key indicator used by the Company to measure performance against internal targets and prior period results. This measure is commonly used by financial analysts and investors to compare Indigo to other retailers. Comparable store sales are defined as sales generated by stores that have been open for more than 12 months on a 52-week basis.

About Indigo Books & Music Inc.

Indigo is a publicly traded Canadian company listed on the Toronto Stock Exchange (IDG). As the largest book, gift and specialty toy retailer in Canada, Indigo operates in all provinces under different banners including Indigo Books & Music; Indigo Books, Gifts, Kids; Indigospirit; Chapters; and Coles. The online channel, indigo.ca, offers a one-stop online shop with a robust selection of books, toys, home décor, stationery, and gifts.

Indigo founded the Indigo Love of Reading Foundation in 2004 to address the underfunding of public elementary school libraries. Every year the Indigo Love of Reading Foundation grants $1.5 million to 20 high-needs elementary schools so they can transform their libraries with the purchase of new books and education resources. To date, the Indigo Love of Reading Foundation's Literacy Fund has committed $15.5 million to more than 170 schools nationally. The Foundation's annual grassroots Adopt a School program unites employees, customer, schools and their communities to raise funds to put even more books into the hands of children. Over the past five years we have raised over $2.0 million so 400,000 children have a book to call their own.

To learn more about Indigo, please visit the Our Company section at indigo.ca.

Consolidated Balance Sheets
(Unaudited)
         
    As at As at As at
    June 28, June 29, March 29,
(thousands of Canadian dollars)   2014 2013 2014
         
ASSETS        
Current        
Cash and cash equivalents   150,667 191,346 157,578
Accounts receivable   8,802 9,010 5,582
Inventories   213,185 207,029 218,979
Prepaid expenses   6,182 5,288 5,184
Total current assets   378,836 412,673 387,323
Property, plant and equipment   56,931 56,144 58,476
Intangible assets   20,723 21,283 21,587
Equity investment   79 597 598
Deferred tax assets   44,604 54,570 44,604
Total assets   501,173 545,267 512,588
LIABILITIES AND EQUITY        
Current        
Accounts payable and accrued liabilities   138,553 145,892 136,428
Unredeemed gift card liability   46,776 46,901 46,827
Provisions   911 1,828 928
Deferred revenue   13,002 13,753 12,860
Income taxes payable   - 11 -
Current portion of long-term debt   446 757 584
Total current liabilities   199,688 209,142 197,627
Long-term accrued liabilities   2,719 3,368 2,896
Long-term provisions   153 78 164
Long-term debt   177 527 227
Total liabilities   202,737 213,115 200,914
Equity        
Share capital   204,204 203,805 203,812
Contributed surplus   9,198 7,789 8,820
Retained earnings   85,034 120,558 99,042
Total equity   298,436 332,152 311,674
Total liabilities and equity   501,173 545,267 512,588

Consolidated Statements of Loss and Comprehensive Loss
(Unaudited)
     
  13-week 13-week
  period ended period ended
  June 28, June 29,
(thousands of Canadian dollars, except per share data) 2014 2013
     
Revenues 180,802 171,525
Cost of sales (100,849) (99,289)
Gross profit 79,953 72,236
Operating, selling, and administrative expenses (93,810) (93,309)
Operating loss (13,857) (21,073)
Interest on long-term debt and financing charges (9) (27)
Interest income on cash and cash equivalents 377 584
Share of loss from equity investment (519) (371)
Loss before income taxes (14,008) (20,887)
Income tax recovery - 5,839
Net loss and comprehensive loss for the period (14,008) (15,048)
     
Net loss per common share    
Basic $ (0.55) $ (0.59)
Diluted $ (0.55) $ (0.59)

Consolidated Statements of Cash Flows
(Unaudited)
  13-week 13-week
  period ended period ended
  June 28, June 29,
(thousands of Canadian dollars) 2014 2013
     
CASH FLOWS FROM OPERATING ACTIVITIES    
Net earnings loss for the period (14,008) (15,048)
Add (deduct) items not affecting cash    
  Depreciation of property, plant, and equipment 3,698 4,039
  Amortization of intangible assets 2,868 2,713
  Loss on disposal of capital assets 7 10
  Stock-based compensation 335 503
  Directors' compensation 104 133
  Deferred tax assets - (5,839)
  Other 1,145 (575)
Net change in non-cash working capital balances 3,587 976
Interest on long-term debt and financing charges 9 27
Interest income on cash and cash equivalents (377) (584)
Share of loss from equity investment 519 371
Cash flows used in operating activities (2,113) (13,274)
     
CASH FLOWS FROM INVESTING ACTIVITIES    
Purchase of property, plant and equipment (2,160) (1,290)
Addition of intangible assets (2,004) (1,832)
Interest received 377 640
Cash flows used in investing activities (3,787) (2,482)
     
CASH FLOWS FROM FINANCING ACTIVITIES    
Repayment of long-term debt (186) (197)
Interest paid (10) (36)
Proceeds from share issuances 331 -
Dividends paid - (2,783)
Repurchase of options - (975)
Cash flows from (used in) financing activities 135 (3,991)
     
Effect of foreign currency exchange rate changes on cash and cash equivalents (1,146) 531
     
Net decrease in cash and cash equivalents during the period (6,911) (19,216)
Cash and cash equivalents, beginning of period 157,578 210,562
Cash and cash equivalents, end of period 150,667 191,346

 

 

SOURCE Indigo Books & Music Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Most people haven’t heard the word, “gamification,” even though they probably, and perhaps unwittingly, participate in it every day. Gamification is “the process of adding games or game-like elements to something (as a task) so as to encourage participation.” Further, gamification is about bringing game mechanics – rules, constructs, processes, and methods – into the real world in an effort to engage people. In his session at @ThingsExpo, Robert Endo, owner and engagement manager of Intrepid D...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
With microservices, SOA and distributed architectures becoming more popular, it is becoming increasingly harder to keep track of where time is spent in a distributed application when trying to diagnose performance problems. Distributed tracing systems attempt to address this problem by following application requests across service boundaries, persisting metadata along the way that provide context for fine-grained performance monitoring.
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...