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
You deployed your app with the Bluemix PaaS and it's gaining some serious traction, so it's time to make some tweaks. Did you design your application in a way that it can scale in the cloud? Were you even thinking about the cloud when you built the app? If not, chances are your app is going to break. Check out this webcast to learn various techniques for designing applications that will scale successfully in Bluemix, for the confidence you need to take your apps to the next level and beyond.
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, 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. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
The increasing popularity of the Internet of Things necessitates that our physical and cognitive relationship with wearable technology will change rapidly in the near future. This advent means logging has become a thing of the past. Before, it was on us to track our own data, but now that data is automatically available. What does this mean for mHealth and the "connected" body? In her session at @ThingsExpo, Lisa Calkins, CEO and co-founder of Amadeus Consulting, will discuss the impact of wea...
There is an ever-growing explosion of new devices that are connected to the Internet using “cloud” solutions. This rapid growth is creating a massive new demand for efficient access to data. And it’s not just about connecting to that data anymore. This new demand is bringing new issues and challenges and it is important for companies to scale for the coming growth. And with that scaling comes the need for greater security, gathering and data analysis, storage, connectivity and, of course, the...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
Unless you don’t use the internet, don’t live in California, or haven’t been paying attention to the recent news… you should be aware that self-driving cars are on their way to becoming a reality. I have seen them – they are real. If you believe in the future reality of self-driving cars, then continue reading on. If you don’t believe in the future possibilities, then I am not sure what to do to convince you other than discuss the very real changes that will roll out with the consumer producti...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today that Ericsson has been named “Gold Sponsor” of SYS-CON's @ThingsExpo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. Ericsson is a world leader in the rapidly changing environment of communications technology – providing equipment, software and services to enable transformation through mobility. Some 40 percent of global mobile traffic runs through networks we have supplied. More than 1 billion subscribers around the world re...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, will provide tips on how to be successful in large scale machine lear...
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.
SYS-CON Events announced today that Enzu, a leading provider of cloud hosting 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. Enzu’s mission is to be the leading provider of enterprise cloud solutions worldwide. Enzu enables online businesses to use its IT infrastructure to their competitive advantage. By offering a suite of proven hosting and management services, Enzu wants companies to foc...
See storage differently! Storage performance problems have only gotten worse and harder to solve as applications have become largely virtualized and moved to a cloud-based infrastructure. Storage performance in a virtualized environment is not just about IOPS, it is about how well that potential performance is guaranteed to individual VMs for these apps as the number of VMs keep going up real time. In his session at 18th Cloud Expo, Dhiraj Sehgal, in product and marketing at Tintri, will discu...