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The Jean Coutu Group: Second Quarter of Fiscal Year 2018 Results

VARENNES, QUEBEC -- (Marketwired) -- 10/12/17 -- The Jean Coutu Group (PJC) Inc. (TSX:PJC.A) (the "Corporation" or the "Jean Coutu Group") reported today its financial results for the quarter ended September 2, 2017.

                                                                            
                             SUMMARY OF RESULTS                             
   (Unaudited, in millions of Canadian dollars, except per share amounts)   
                                                                            
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                                          Second quarter          First half
                                          2018      2017      2018      2017
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                                             $         $         $         $
Revenues                                 744.3     701.2   1,494.7   1,424.8
Operating income before amortization                                        
 ("OIBA")                                 74.6      78.5     146.1     155.5
Net profit                                47.8      51.5      93.3     100.5
  Per share                               0.26      0.28      0.51      0.54
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Highlights

--  Revenues increased by 6.1% to $744.3 million for the second quarter of
    fiscal year 2018 compared with the same quarter last year. 
    
--  Net profit per share amounted to $0.26 for the second quarter of fiscal
    year 2018, compared with $0.28 per share for the second quarter of
    previous fiscal year. 
    
--  Pro Doc's contribution to the consolidated OIBA decreased by $10.4
    million, following the removal of the ceiling on professional allowances
    allowed, compared with the same quarter last year. 

Financial results

"During the second quarter, network retail sales and front-end sales of our distribution centers showed a noticeable increase despite a still very competitive environment" stated Mr. François J. Coutu, President and CEO. "We will continue to make the necessary efforts to promote retail sales growth and maintain our leadership."

Revenues

Revenues consist mainly of sales and other revenues derived from franchising activities. Merchandise sales to PJC franchisees made mostly through our distribution centers account for the greater part of our revenues.

Revenues amounted to $744.3 million for the quarter ended September 2, 2017, compared with $701.2 million for the quarter ended August 27, 2016. For the first half of fiscal year 2018, revenues amounted to $1,494.7 million compared with $1,424.8 million for the same period of the previous fiscal year, an increase of 4.9%. This increase is attributable to the overall market growth despite the deflationary impact on revenues of the volume increase in prescriptions of generic drugs compared with brand name drugs as well as the price reductions of generic drugs. The increase in sales of the commercial section of our distribution centers reflects the success of our business strategies as well as the strength of our brand.

OIBA

OIBA decreased by $3.9 million to $74.6 million for the quarter ended September 2, 2017, compared with $78.5 million for the quarter ended August 27, 2016. A gain on the sale of property & equipment and investment property of $6.4 million was recorded during the second quarter of fiscal year 2017. OIBA before this gain on the sale of property & equipment and investment property increased by $2.5 million compared with the same period last year. This increase is mainly due to the increase in sales and royalty revenues as well as to the decrease in general and operating expenses such as labor and other expenses related to the transition to the Varennes location, which were partially offset by the lower contribution of Pro Doc to the OIBA. OIBA as a percentage of revenues ended the second quarter of fiscal year 2018 at 10.0% compared with 11.2% for the same quarter of the previous fiscal year.

For the first half of fiscal year 2018, the Corporation's OIBA decreased by $9.4 million to $146.1 compared with $155.5 million for the same period of fiscal year 2017. For the first half of fiscal year 2017, a gain on the sale of property & equipment and investment property of $6.2 million was recorded. OIBA before this gain on the sale of property & equipment and investment property decreased by $3.2 million compared with the same period last year. This decrease is mainly due to the lower contribution of Pro Doc to the OIBA, partially offset by the increase in sales and royalty revenues. As a percentage of revenues, OIBA ended the first half of 2018 at 9.8% compared with 10.9% for the same period of the previous fiscal year.

Pro Doc

Gross sales of Pro Doc drugs amounted to $54.7 million for the quarter ended September 2, 2017, compared with $49.4 million for the quarter ended August 27, 2016. Pro Doc's contribution to the consolidated OIBA amounted to $7.5 million for the quarter ended September 2, 2017, compared with $17.9 million for the quarter ended August 27, 2016. This decrease is mainly attributable to the removal of the ceiling on professional allowances allowed by the regulation on benefits authorized to a pharmacist since January 28, 2017. Pro Doc's contribution to the consolidated OIBA as a percentage of gross sales ended the second quarter of fiscal year 2018 at 13.7% compared with 36.2% for the same period of the previous fiscal year.

Gross sales of Pro Doc drugs amounted to $104.8 million for the first half of fiscal year 2018, compared with $100.9 million for the same period of fiscal year 2017. Pro Doc's contribution to the consolidated OIBA amounted to $13.7 million for the first half of fiscal year 2018, compared with $39.2 million for the same period of fiscal year 2017. Pro Doc's contribution to the consolidated OIBA as a percentage of its gross sales ended the first half of fiscal year 2018 at 13.1% compared with 38.9% for the same period of the previous fiscal year.

Net profit

Net profit amounted to $47.8 million ($0.26 per share) for the quarter ended September 2, 2017, compared with $51.5 million ($0.28 per share) for the quarter ended August 27, 2016. This decrease is mainly due to the decrease of Pro Doc's contribution to the net profit.

Net profit for the first half of fiscal year 2018 amounted to $93.3 million ($0.51 per share) compared with $100.5 million ($0.54 per share) for the same period of fiscal year 2017.

Information on the PJC network of franchised stores

The Corporation carries on the franchising activity under the banners of PJC Jean Coutu, PJC Jean Coutu Santé and PJC Jean Coutu Santé Beauté, operates two distribution centers and coordinates several other services for the benefit of its franchisees.

For the quarter ended September 2, 2017, on a same-store basis, the PJC network's retail sales increased by 4.0%, pharmacy sales increased by 4.6% and front-end sales increased by 3.4%, compared with the corresponding period last year. Sales of non-prescription drugs, which represented 8.5% of total retail sales, increased by 5.5% compared with 5.1% for the corresponding period of fiscal year 2017.

For the first half of fiscal year 2018, on a same store basis, the PJC network's retail sales grew by 5.5%, pharmacy sales increased by 7.4% and front-end sales increased by 2.4%, compared with the same period last year. Sales of non-prescription drugs which represented 8.5% of total retail sales, increased by 3.8% compared with 4.5% for the same period of fiscal year 2017.

Generic drugs reached 72.0% of prescriptions during the second quarter of fiscal year 2018 compared with 71.3% of prescriptions for the comparable period of the previous fiscal year. The increase in the number of generic drugs prescriptions with lower selling prices than brand name drugs had a deflationary impact on the pharmacy's retail sales.

For the second quarter of fiscal year 2018, the introduction of new generic drugs reduced pharmacy's retail sales growth by 0.2% and price reductions of generic drugs reduced retail sales growth by an additional 0.5%. Furthermore, the abolition of periodical withdrawals by the Ministry of Health and Social Services ("MSSS") on April 12, 2017, increased the retail sales of the pharmaceutical section by 1.4% during the second quarter of fiscal year 2018.

----------------------------------------------------------------------------
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Network performance (1)  (unaudited)     Second quarter          First half 
                                         2018      2017      2018      2017 
----------------------------------------------------------------------------
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Retail sales (in millions of                                                
 dollars)                            $1,102.3  $1,058.6  $2,256.6  $2,137.5 
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Retail sales growth (in percentage)                                         
Total stores                                                                
  Total                                   4.1%      2.4%      5.6%      2.0%
  Pharmacy                                4.6%      1.2%      7.3%      1.0%
  Front-end (2)                           3.7%      5.2%      2.8%      4.0%
Same store                                                                  
  Total                                   4.0%      2.0%      5.5%      1.5%
  Pharmacy                                4.6%      0.8%      7.4%      0.7%
  Front-end (2)                           3.4%      4.5%      2.4%      3.4%
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Prescriptions growth (in percentage)                                        
  Total stores                            3.1%      4.0%      3.0%      4.0%
  Same store                              3.1%      3.7%      3.1%      3.7%
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(1)   Franchised outlets' retail sales are not included in the Corporation's
      consolidated financial statements.                                    
(2)   Front-end retail sales exclude sales of services which are included in
      the total retail sales growth.                                        

PJC network of franchised stores expansion

During the second quarter of fiscal year 2018, there was 1 store relocation in the PJC network of franchised stores.

As at September 2, 2017, total selling square footage of the PJC network amounted to 3,305,000 square feet compared with 3,257,000 square feet as at August 27, 2016.

Dividend

The Board of the Jean Coutu Group declared a quarterly dividend of $0.13 per share. This dividend will be paid on November 10, 2017, to all holders of Class "A" Subordinate Voting Shares and holders of Class "B" Shares listed in the Corporation's shareholder ledger as at October 27, 2017.

Regulatory changes

On June 10, 2016, the Québec National Assembly adopted the proposed Bill 81 An act to reduce the cost of certain medications covered by the basic prescription drug insurance plan by allowing calls for tender allowing the Minister of Health and Social Services to issue a call for tenders to add drugs to the Drugs List as well as, in relation to drugs having been the object of such a call for tenders, for the services of a wholesaler to supply the pharmacist owners. The regulation to determine the conditions and applicable mechanisms to any call for tenders was published in the "Gazette officielle du Québec" on April 5, 2017. This regulation has been in effect since April 20, 2017.

The Bill 92 entitled "An Act to extend the powers of the Régie de l'assurance maladie du Québec, regulate commercial practices relating to prescription drugs and protect access to voluntary termination of pregnancy services" is assented by the National Assembly of Quebec since December 7, 2016. Some of its provisions seek to constrict commercial practices of all stakeholders regarding the commercialization of medication to strengthen the professional independence of the pharmacist, the freedom of choice of the patient and encourage more competitive conditions on the market. Other provisions of the Bill requiring detailed billing for medication came into force on September 15, 2017.

On April 12, 2017, the members of the "Association Québécoise des pharmaciens propriétaires" ("AQPP") ratified an agreement in principle with the Ministry of Health and Social Services ("MHSS"). Under this agreement, the government canceled the periodical withdrawals recorded and unpaid as of that date and ends the periodical withdrawals on pharmacists' fees that were supposed to continue until 2019. Furthermore, the agreement stipulates that the government will introduce a modification to the regulation on the benefits authorized to a pharmacist restoring to 15% the ceiling on professional allowances that may be paid by generic manufacturers to a pharmacist. This regulation modification will become in effect on October 19, 2017 and will put an end to the removal of the ceiling on professional allowances in effect since January 28, 2017.

On July 16, 2017, the Quebec Government and the Canadian Generic Pharmaceutical Association announced the conclusion of an Agreement in Principle by virtue of which the Quebec Government will reach targeted savings of $1.5 billion over a 5-year period. These savings will be achieved through additional price reductions and the launch of new generic drugs. This Agreement will allow the Quebec Government, during those five years, to prevent the application of the calls for tender process permitted by law. Details of the implementation of this Agreement are not public.

On October 5, 2017, Bill 148 entitled "An Act to regulate generic medication procurement by owner pharmacists and to amend various legislative provisions" was introduced to the National Assembly of Quebec. The bill provides that an owner may not, in a calendar year, procure generic medications entered on the list of medications from the same manufacturer in excess of 50% of the monetary value of all the generic medications purchased by the pharmacist during that year. The implementation date remains to be determined.

Combination of the Jean Coutu Group and METRO

On October 2, 2017, METRO inc. ("METRO") and the Corporation announced that they have entered into a definitive combination agreement pursuant to which METRO will acquire all of the outstanding Corporation Class "A" Subordinate Voting Shares and all of the outstanding Corporation Class "B" Shares for $24.50 per share, representing a total consideration of approximately $4.5 billion, subject to regulatory and Corporation shareholders' approval. For further details, readers are referred to the press release of October 2, 2017.

Strategies and outlook

With its operations and financial flexibility, the Corporation is very well positioned to capitalize on the growth in the drugstore retail industry. Demographic trends are expected to contribute to the growth in prescription drugs consumption and to the increased use of pharmaceuticals as the primary intervention in individual healthcare. Management believes that these trends will continue and that the Corporation will maintain its growth in revenues through differentiation and quality of offering and service levels to its network of franchised stores, with a focus on its real estate program and operating efficiency. The growth in the number of generic drugs prescriptions, with lower selling prices than the branded name drugs, would, however, have a deflationary impact on retail sales in pharmacy. Additional generic drugs price decreases will reduce the profitability of the subsidiary Pro Doc. The removal of the ceiling on professional allowances allowed will also reduce the profitability of Pro Doc until the reinstatement of the 15% ceiling when a new regulation comes into force as per the April 12, 2017 agreement between the ("AQPP") and the ("MHSS").

Conference call

Financial analysts and investors are invited to attend the conference call on the second quarter of fiscal year 2018 financial results to be held on October 12, 2017, at 9:00 AM (ET). The call-in number is 514-392-1478 or toll free at 1-866-225-0198. Media and other interested individuals are invited to listen to the live or deferred broadcast on The Jean Coutu Group corporate website at www.jeancoutu.com. A full replay will also be available by dialing 514-861-2272 or toll free at 1-800-408-3053 until November 11, 2017. The access code is 6716268 followed by pound sign (#).

Supporting documentation (Management's discussion and analysis and investor presentation) is available at www.jeancoutu.com using the investors' link. Readers may also access additional information and filings related to the Corporation using the following link to the www.sedar.com website.

About The Jean Coutu Group

The Jean Coutu Group is one of the most trusted names in Canadian pharmacy retailing. The Corporation operates a network of 419 franchised stores in Québec, New Brunswick and Ontario under the banners of PJC Jean Coutu, PJC Santé and PJC Santé Beauté, which employs over 20,000 people. Furthermore, the Jean Coutu Group owns Pro Doc Ltd ("Pro Doc"), a Québec-based subsidiary and manufacturer of generic drugs.

This press release contains forward-looking statements that involve risks and uncertainties, and which are based on the Corporation's current expectations, estimates, projections and assumptions that were made by the Corporation in light of its experience and its perception of historical trends. All statements that address expectations or projections about the future, including statements about the Corporation's strategy for growth, costs, operating or financial results, are forward-looking statements. All statements other than statements of historical facts included in this press release, including statements regarding the prospects of the Corporation's industry and the Corporation's prospects, plans, financial position and business strategy may constitute forward-looking statements within the meaning of the Canadian securities legislation and regulations. Some of the forward-looking statements may be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "project", "could", "should", "would", "anticipate", "plan", "foresee", "believe" or "continue" or the negatives of these terms or variations of them or similar terminology. Although the Corporation believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct.

These statements are not guarantees of future performance and involve a number of risks, uncertainties, and assumptions. These statements do not reflect the potential impact of any nonrecurring items or of any mergers, acquisitions, dispositions, asset write-downs or other transactions or charges that may be announced or that may occur after the date hereof. While the list below of cautionary statements is not exhaustive, some important factors that could affect the Corporation's future operating results, financial position and cash flows and could cause its actual results to differ materially from those expressed in these forward-looking statements are changes in the legislation or the regulatory environment as it relates to the sale of prescription drugs and the pharmacy exercise, the success of the Corporation's business model, changes in laws and regulations, or in their interpretations, changes to tax regulations and accounting pronouncements, the cyclical and seasonal variations in the industry in which the Corporation operates, the intensity of competitive activity in the industry in which the Corporation operates, the supplier and brand reputations, the Corporation's ability to attract and retain pharmacists, labour disruptions, including possibly strikes and labour protests, the accuracy of management's assumptions and other factors that are beyond the Corporation's control. These and other factors could cause the Corporation's actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied in those forward-looking statements.

Forward-looking statements are provided for the purpose of assisting in understanding the Corporation's financial position and results of operation and to present information about management's current expectations and plans relating to the future. Investors and others are thus cautioned that such statements may not be appropriate for other purposes and they should not place undue reliance on them. For more information on the risks, uncertainties and assumptions that would cause the Corporation's actual results to differ from current expectations, please also refer to the Corporation's public filings available at www.sedar.com and www.jeancoutu.com. Further details and descriptions of these and other factors are disclosed in the Corporation's Annual Information Form under "Risk Factors" and also in the "Critical accounting estimates", "Risks and uncertainties" and "Strategies and outlook" sections of the Corporation's annual management's discussion and analysis for fiscal year ended March 4, 2017. The forward-looking statements in this press release reflect the Corporation's expectations as of the date hereof and are subject to change after such date. The Corporation expressly disclaims any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by the applicable securities laws.

                                                                            
THE JEAN COUTU GROUP (PJC) INC.                                             
                                                                            
Condensed consolidated statements of income        13 weeks        26 weeks 
For the periods ended September 2, 2017 and                                 
 August 27, 2016                               2017    2016    2017    2016 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(unaudited, in millions of Canadian dollars,                                
 unless otherwise noted)                          $       $       $       $ 
                                                                            
Sales                                         665.4   631.8 1,336.7 1,285.5 
Other revenues                                 78.9    69.4   158.0   139.3 
----------------------------------------------------------------------------
                                              744.3   701.2 1,494.7 1,424.8 
Operating expenses                                                          
  Cost of sales                               598.3   555.0 1,197.8 1,123.7 
  General and operating expenses               71.4    67.7   150.8   145.6 
----------------------------------------------------------------------------
Operating income before depreciation and                                    
 amortization                                  74.6    78.5   146.1   155.5 
  Depreciation and amortization                10.0    10.0    20.0    20.1 
----------------------------------------------------------------------------
Operating income                               64.6    68.5   126.1   135.4 
Financing revenus                              (1.0)   (0.5)   (1.8)   (1.0)
----------------------------------------------------------------------------
Profit before income taxes                     65.6    69.0   127.9   136.4 
Income taxes                                   17.8    17.5    34.6    35.9 
----------------------------------------------------------------------------
Net profit                                     47.8    51.5    93.3   100.5 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Basic and diluted profit per share, in                                      
 dollars                                       0.26    0.28    0.51    0.54 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Condensed consolidated statements of                                        
 comprehensive income                              13 weeks        26 weeks 
For the periods ended September 2, 2017 and                                 
 August 27, 2016                                2017   2016     2017   2016 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(unaudited, in millions of Canadian dollars)       $      $        $      $ 
                                                                            
Net profit                                      47.8   51.5     93.3  100.5 
Other comprehensive income                                                  
  Items that will be reclassified                                           
   subsequently to net profit:                                              
    Net change in cash flow hedge:                                          
      Loss for the period                          -   (0.3)       -   (0.9)
      Reclassification of gain to non-                                      
       financial assets                            -    0.2        -    0.1 
      Income taxes                                 -      -        -    0.2 
----------------------------------------------------------------------------
                                                   -   (0.1)       -   (0.6)
----------------------------------------------------------------------------
Total comprehensive income                      47.8   51.4     93.3   99.9 
----------------------------------------------------------------------------
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THE JEAN COUTU GROUP (PJC) INC.                                           
                                                                          
Condensed consolidated statements of changes in equity                    
                                                                          
For the periods ended September 2, 2017 and August 27, 2016               
--------------------------------------------------------------------------
--------------------------------------------------------------------------
(unaudited, in millions of Canadian dollars)                              
                                                                          
                                         Capital    Treasury  Contributed 
                                           stock       stock      surplus 
--------------------------------------------------------------------------
--------------------------------------------------------------------------
                                               $           $            $ 
                                                                          
Balance at March 4, 2017                   399.2        (1.7)        58.9 
                                                                          
  Net profit                                   -           -            - 
  Other comprehensive income                   -           -            - 
--------------------------------------------------------------------------
Total comprehensive income                     -           -            - 
--------------------------------------------------------------------------
Dividends                                      -           -            - 
Share-based compensation cost                  -           -          0.3 
Options exerciced                            2.2           -         (0.3)
--------------------------------------------------------------------------
Balance at September 2, 2017               401.4        (1.7)        58.9 
--------------------------------------------------------------------------
--------------------------------------------------------------------------
                                                                          
Balance at February 27, 2016               405.2        (2.2)        58.7 
                                                                          
  Net profit                                   -           -            - 
  Other comprehensive income                   -           -            - 
--------------------------------------------------------------------------
Total comprehensive income                     -           -            - 
--------------------------------------------------------------------------
Dividends                                      -           -            - 
Share-based compensation cost                  -           -          0.4 
--------------------------------------------------------------------------
Balance at August 27, 2016                 405.2        (2.2)        59.1 
--------------------------------------------------------------------------
--------------------------------------------------------------------------
                                                                          

THE JEAN COUTU GROUP (PJC) INC.                                             
                                                                            
Condensed consolidated statements of changes in equity                      
                                                                            
For the periods ended September 2, 2017 and August 27, 2016                 
--------------------------------------------------------------------------- 
--------------------------------------------------------------------------- 
(unaudited, in millions of Canadian dollars)                                
                                                                            
                                                                            
                                          Hedging     Retained        Total 
                                          reserve     earnings       equity 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                $            $            $ 
                                                                            
Balance at March 4, 2017                        -        753.7      1,210.1 
                                                                            
  Net profit                                    -         93.3         93.3 
  Other comprehensive income                    -            -            - 
----------------------------------------------------------------------------
Total comprehensive income                      -         93.3         93.3 
----------------------------------------------------------------------------
Dividends                                       -        (47.8)       (47.8)
Share-based compensation cost                   -            -          0.3 
Options exerciced                               -            -          1.9 
----------------------------------------------------------------------------
Balance at September 2, 2017                    -        799.2      1,257.8 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Balance at February 27, 2016                  0.6        658.0      1,120.3 
                                                                            
  Net profit                                    -        100.5        100.5 
  Other comprehensive income                 (0.6)           -         (0.6)
----------------------------------------------------------------------------
Total comprehensive income                   (0.6)       100.5         99.9 
----------------------------------------------------------------------------
Dividends                                       -        (44.4)       (44.4)
Share-based compensation cost                   -            -          0.4 
----------------------------------------------------------------------------
Balance at August 27, 2016                      -        714.1      1,176.2 
----------------------------------------------------------------------------
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THE JEAN COUTU GROUP (PJC) INC.                                             
                                                                            
Condensed consolidated statements of financial                              
 position                                                  As at      As at 
                                                    September 2,    March 4,
                                                            2017        2017
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(unaudited, in millions of Canadian dollars)                   $           $
                                                                            
Current assets                                                              
  Cash                                                     230.3       178.9
  Trade and other receivables                              235.6       202.2
  Inventories                                              254.6       302.7
  Prepaid expenses                                          18.3        15.3
  Income taxes receivables                                     -         3.8
----------------------------------------------------------------------------
                                                           738.8       702.9
Non-current assets                                                          
  Long-term receivables from franchisees                    25.2        27.7
  Investment in associates and joint ventures               29.7        29.7
  Property and equipment                                   476.8       484.6
  Investment property                                       21.8        22.1
  Intangible assets                                        198.0       202.2
  Goodwill                                                  36.0        36.0
  Deferred tax                                               0.1         0.1
  Other long-term assets                                    18.7        18.8
----------------------------------------------------------------------------
Total assets                                             1,545.1     1,524.1
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Current liabilities                                                         
  Trade and other payables                                 252.9       285.2
  Income taxes payables                                      4.4           -
----------------------------------------------------------------------------
                                                           257.3       285.2
Non-current liabilities                                                     
  Deferred tax                                              13.6        13.0
  Other long-term liabilities                               16.4        15.8
----------------------------------------------------------------------------
Total liabilities                                          287.3       314.0
----------------------------------------------------------------------------
                                                                            
Equity                                                   1,257.8     1,210.1
----------------------------------------------------------------------------
Total liabilities and equity                             1,545.1     1,524.1
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
THE JEAN COUTU GROUP (PJC) INC.                                             
                                                                            
Condensed consolidated statements of cash                                   
 flows                                             13 weeks        26 weeks 
                                                                            
For the periods ended September 2, 2017 and                                 
 August 27, 2016                               2017    2016    2017    2016 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(unaudited, in millions of Canadian dollars)      $       $       $       $ 
                                                                            
Operating activities                                                        
Net profit                                     47.8    51.5    93.3   100.5 
Adjustments:                                                                
  Depreciation and amortization                10.0    10.0    20.0    20.1 
  Interest income                              (1.0)   (0.5)   (1.7)   (0.9)
  Income taxes                                 17.8    17.5    34.6    35.9 
  Gain on disposal of property and equipment                                
   and investment property                        -    (6.4)      -    (6.2)
  Others                                        0.3     1.0     1.0     2.5 
----------------------------------------------------------------------------
                                               74.9    73.1   147.2   151.9 
Net change in non-cash asset and liability                                  
 items                                          0.6     2.1   (16.7)  (21.0)
Interest received                               0.7     0.5     1.4     0.9 
Income taxes paid                              (9.1)  (15.7)  (25.8)  (25.4)
----------------------------------------------------------------------------
Cash flow related to operating activities      67.1    60.0   106.1   106.4 
----------------------------------------------------------------------------
                                                                            
Investing activities                                                        
  Investments in associates and joint                                       
   ventures                                       -       -       -    (0.8)
  Purchase of property and equipment           (3.6)   (4.7)   (7.4)  (13.2)
  Proceeds from disposal of property and                                    
   equipment                                      -    14.0     0.1    14.0 
  Proceeds from disposal of investment                                      
   property                                       -     0.2       -     0.3 
  Net change in long-term receivables from                                  
   franchisees                                  3.3     0.4     1.7    (1.5)
  Purchase of intangible assets                (1.9)   (1.3)   (3.2)  (10.8)
----------------------------------------------------------------------------
Cash flow related to investing activities      (2.2)    8.6    (8.8)  (12.0)
----------------------------------------------------------------------------
                                                                            
Financing activities                                                        
  Issuance of capital stock                       -       -     1.9       - 
  Redemption of capital stock                     -       -       -    (0.8)
  Dividends paid                              (23.9)  (22.2)  (47.8)  (44.4)
----------------------------------------------------------------------------
Cash flow related to financing activities     (23.9)  (22.2)  (45.9)  (45.2)
----------------------------------------------------------------------------
Effect of foreign exchange rate changes on                                  
 cash and cash equivalents                        -    (0.1)      -    (0.9)
----------------------------------------------------------------------------
Net change in cash and cash equivalents        41.0    46.3    51.4    48.3 
Cash and cash equivalents, beginning of                                     
 period                                       189.3   102.3   178.9   100.3 
----------------------------------------------------------------------------
Cash and cash equivalents, end of period      230.3   148.6   230.3   148.6 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Cash and cash equivalents consist of:                                       
  Cash                                                        230.3   143.1 
  Temporary investment                                            -     5.5 
----------------------------------------------------------------------------
                                                              230.3   148.6 
----------------------------------------------------------------------------

Contacts:
Source:
The Jean Coutu Group (PJC) Inc.
Andre Belzile
Senior Vice-President, Finance and Corporate Affairs
(450) 646-9760

Information:
Helene Bisson
Vice-President, Communications
(450) 646-9611, Ext. 1165

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The next XaaS is CICDaaS. Why? Because CICD saves developers a huge amount of time. CD is an especially great option for projects that require multiple and frequent contributions to be integrated. But… securing CICD best practices is an emerging, essential, yet little understood practice for DevOps teams and their Cloud Service Providers. The only way to get CICD to work in a highly secure environment takes collaboration, patience and persistence. Building CICD in the cloud requires rigorous ar...
SYS-CON Events announced today that Dasher Technologies will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Dasher Technologies, Inc. ® is a premier IT solution provider that delivers expert technical resources along with trusted account executives to architect and deliver complete IT solutions and services to help our clients execute their goals, plans and objectives. Since 1999, we'v...
As popularity of the smart home is growing and continues to go mainstream, technological factors play a greater role. The IoT protocol houses the interoperability battery consumption, security, and configuration of a smart home device, and it can be difficult for companies to choose the right kind for their product. For both DIY and professionally installed smart homes, developers need to consider each of these elements for their product to be successful in the market and current smart homes.
The session is centered around the tracing of systems on cloud using technologies like ebpf. The goal is to talk about what this technology is all about and what purpose it serves. In his session at 21st Cloud Expo, Shashank Jain, Development Architect at SAP, will touch upon concepts of observability in the cloud and also some of the challenges we have. Generally most cloud-based monitoring tools capture details at a very granular level. To troubleshoot problems this might not be good enough.
In the fast-paced advances and popularity in cloud technology, one of the most critical factors revolves around concerns for security of your critical data. How to assure both your company and your customers they can confidently trust and utilize your cloud environment is most often top on the list. There is a method to evaluating and providing security that exceeds conventional modes of protecting data both within the cloud as well externally on mobile and other devices. With the public failure...
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
Transforming cloud-based data into a reportable format can be a very expensive, time-intensive and complex operation. As a SaaS platform with more than 30 million global users, Cornerstone OnDemand’s challenge was to create a scalable solution that would improve the time it took customers to access their user data. Our Real-Time Data Warehouse (RTDW) process vastly reduced data time-to-availability from 24 hours to just 10 minutes. In his session at 21st Cloud Expo, Mark Goldin, Chief Technolo...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
SYS-CON Events announced today that TidalScale, a leading provider of systems and services, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale has been involved in shaping the computing landscape. They've designed, developed and deployed some of the most important and successful systems and services in the history of the computing industry - internet, Ethernet, operating s...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
We all know that end users experience the Internet primarily with mobile devices. From an app development perspective, we know that successfully responding to the needs of mobile customers depends on rapid DevOps – failing fast, in short, until the right solution evolves in your customers' relationship to your business. Whether you’re decomposing an SOA monolith, or developing a new application cloud natively, it’s not a question of using microservices – not doing so will be a path to eventual b...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, will discuss how from store operations...
Though cloud is the future of enterprise computing, a smooth transition of legacy applications and systems is critical for seamless business operations. IT professionals are eager to start leveraging the cost, scale and other benefits of cloud, but with massive investments already in place in existing infrastructure and a number of compliance and resource hurdles, it can be challenging to move to a cloud-based infrastructure.
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, will go over the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, applicatio...