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
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
Information technology (IT) advances are transforming the way we innovate in business, thereby disrupting the old guard and their predictable status-quo. It’s creating global market turbulence. Industries are converging, and new opportunities and threats are emerging, like never before. So, how are savvy chief information officers (CIOs) leading this transition? Back in 2015, the IBM Institute for Business Value conducted a market study that included the findings from over 1,800 CIO interviews ...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, discussed how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a practic...
In their Live Hack” presentation at 17th Cloud Expo, Stephen Coty and Paul Fletcher, Chief Security Evangelists at Alert Logic, provided the audience with a chance to see a live demonstration of the common tools cyber attackers use to attack cloud and traditional IT systems. This “Live Hack” used open source attack tools that are free and available for download by anybody. Attendees learned where to find and how to operate these tools for the purpose of testing their own IT infrastructure. The...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
Historically, some banking activities such as trading have been relying heavily on analytics and cutting edge algorithmic tools. The coming of age of powerful data analytics solutions combined with the development of intelligent algorithms have created new opportunities for financial institutions. In his session at 20th Cloud Expo, Sebastien Meunier, Head of Digital for North America at Chappuis Halder & Co., will discuss how these tools can be leveraged to develop a lasting competitive advanta...
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.