Roots Corporation | Interim Condensed Consolidated Financial Statements
Added on 2022-09-18
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ROOTS CORPORATION
Interim Condensed Consolidated Financial Statements
For the 13 and 39 week periods ended November 2, 2019 and November 3, 2018
In Canadian dollars
(Unaudited)
Interim Condensed Consolidated Financial Statements
For the 13 and 39 week periods ended November 2, 2019 and November 3, 2018
In Canadian dollars
(Unaudited)
1
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Financial Position
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
As at November 2, As at February 2,
Note 2019 2019
Assets
Current assets:
Cash $ 453 $ 1,991
Accounts receivable, net 10 7,712 6,627
Inventories 70,373 49,533
Prepaid expenses 4,460 6,443
Income taxes recoverable 2,257 –
Derivative assets 4, 10 – 366
Total current assets 85,255 64,960
Non-current assets:
Loan receivable 10, 12 562 562
Lease receivable 10 1,590 –
Fixed assets 75,181 64,163
Right-of-use assets 5 135,589 –
Intangible assets 193,769 198,724
Goodwill 52,705 52,705
Total non-current assets 459,396 316,154
Total assets $ 544,651 $ 381,114
Liabilities and Shareholders' Equity
Current liabilities:
Bank indebtedness 10 $ 1,809 $ 12,409
Accounts payable and accrued liabilities 10 34,628 22,291
Deferred revenue 4,398 5,498
Income taxes payable – 6,445
Derivative liabilities 4, 10 485 –
Current portion of lease liabilities 5, 10 29,566 –
Current portion of long-term debt 6, 10 4,984 4,984
Total current liabilities 75,870 51,627
Non-current liabilities:
Deferred tax liabilities 22,501 22,761
Deferred lease costs 2 – 10,063
Finance lease obligation 2 – 504
Long-term portion of lease liabilities 5, 10 123,781 –
Long-term debt 6, 10 126,611 80,031
Other non-current liabilities 2 – 1,424
Total non-current liabilities 272,893 114,783
Total liabilities 348,763 166,410
Shareholders' equity:
Share capital 7 196,903 196,853
Contributed surplus 9 4,452 3,975
Accumulated other comprehensive income (loss) (356) 268
Retained earnings (deficit) (5,111) 13,608
Total shareholders' equity 195,888 214,704
Total liabilities and shareholders' equity $ 544,651 $ 381,114
See accompanying notes to unaudited interim condensed consolidated financial statements.
On behalf of the Board of Directors:
"Erol Uzumeri" Director
"Richard P. Mavrinac" Director & Audit Committee Chair
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Financial Position
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
As at November 2, As at February 2,
Note 2019 2019
Assets
Current assets:
Cash $ 453 $ 1,991
Accounts receivable, net 10 7,712 6,627
Inventories 70,373 49,533
Prepaid expenses 4,460 6,443
Income taxes recoverable 2,257 –
Derivative assets 4, 10 – 366
Total current assets 85,255 64,960
Non-current assets:
Loan receivable 10, 12 562 562
Lease receivable 10 1,590 –
Fixed assets 75,181 64,163
Right-of-use assets 5 135,589 –
Intangible assets 193,769 198,724
Goodwill 52,705 52,705
Total non-current assets 459,396 316,154
Total assets $ 544,651 $ 381,114
Liabilities and Shareholders' Equity
Current liabilities:
Bank indebtedness 10 $ 1,809 $ 12,409
Accounts payable and accrued liabilities 10 34,628 22,291
Deferred revenue 4,398 5,498
Income taxes payable – 6,445
Derivative liabilities 4, 10 485 –
Current portion of lease liabilities 5, 10 29,566 –
Current portion of long-term debt 6, 10 4,984 4,984
Total current liabilities 75,870 51,627
Non-current liabilities:
Deferred tax liabilities 22,501 22,761
Deferred lease costs 2 – 10,063
Finance lease obligation 2 – 504
Long-term portion of lease liabilities 5, 10 123,781 –
Long-term debt 6, 10 126,611 80,031
Other non-current liabilities 2 – 1,424
Total non-current liabilities 272,893 114,783
Total liabilities 348,763 166,410
Shareholders' equity:
Share capital 7 196,903 196,853
Contributed surplus 9 4,452 3,975
Accumulated other comprehensive income (loss) (356) 268
Retained earnings (deficit) (5,111) 13,608
Total shareholders' equity 195,888 214,704
Total liabilities and shareholders' equity $ 544,651 $ 381,114
See accompanying notes to unaudited interim condensed consolidated financial statements.
On behalf of the Board of Directors:
"Erol Uzumeri" Director
"Richard P. Mavrinac" Director & Audit Committee Chair
2
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Net Income (Loss)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
For the 13 and 39 week periods ended November 2, 2019 and November 3, 2018
November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018
Note (13 weeks) (13 weeks) (39 weeks) (39 weeks)
Sales $ 86,377 $ 86,979 $ 202,412 $ 198,205
Cost of goods sold 38,998 39,049 95,513 88,060
Gross profit 47,379 47,930 106,899 110,145
Selling, general and administrative expenses 40,697 42,465 118,863 115,014
Income (loss) before interest expense and income
taxes expense (recovery) 6,682 5,465 (11,964) (4,869)
Interest expense 10 4,159 1,393 11,605 3,736
Income (loss) before income taxes 2,523 4,072 (23,569) (8,605)
Income taxes expense (recovery) 11 554 1,277 (6,117) (1,729)
Net income (loss) $ 1,969 $ 2,795 $ (17,452) $ (6,876)
Basic earnings (loss) per share 8 $ 0.05 $ 0.07 $ (0.41) $ (0.16)
Diluted earnings (loss) per share 8 $ 0.05 $ 0.07 $ (0.41) $ (0.16)
See accompanying notes to unaudited interim condensed consolidated financial statements.
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Net Income (Loss)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
For the 13 and 39 week periods ended November 2, 2019 and November 3, 2018
November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018
Note (13 weeks) (13 weeks) (39 weeks) (39 weeks)
Sales $ 86,377 $ 86,979 $ 202,412 $ 198,205
Cost of goods sold 38,998 39,049 95,513 88,060
Gross profit 47,379 47,930 106,899 110,145
Selling, general and administrative expenses 40,697 42,465 118,863 115,014
Income (loss) before interest expense and income
taxes expense (recovery) 6,682 5,465 (11,964) (4,869)
Interest expense 10 4,159 1,393 11,605 3,736
Income (loss) before income taxes 2,523 4,072 (23,569) (8,605)
Income taxes expense (recovery) 11 554 1,277 (6,117) (1,729)
Net income (loss) $ 1,969 $ 2,795 $ (17,452) $ (6,876)
Basic earnings (loss) per share 8 $ 0.05 $ 0.07 $ (0.41) $ (0.16)
Diluted earnings (loss) per share 8 $ 0.05 $ 0.07 $ (0.41) $ (0.16)
See accompanying notes to unaudited interim condensed consolidated financial statements.
3
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Comprehensive Income (Loss)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
For the 13 and 39 week periods ended November 2, 2019 and November 3, 2018
November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018
Note (13 weeks) (13 weeks) (39 weeks) (39 weeks)
Net income (loss) $ 1,969 $ 2,795 $ (17,452) $ (6,876)
Other comprehensive income (loss),
net of taxes:
Items that may be subsequently
reclassified to profit or loss:
Effective portion of changes in fair
value of cash flow hedges 4, 10 (398) 419 112 3,517
Cost of hedging excluded from
cash flow hedges 4, 10 121 54 359 178
Tax impact of cash flow hedges 4, 10 74 (126) (125) (984)
Total comprehensive income (loss) $ 1,766 $ 3,142 $ (17,106) $ (4,165)
See accompanying notes to unaudited interim condensed consolidated financial statements.
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Comprehensive Income (Loss)
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
For the 13 and 39 week periods ended November 2, 2019 and November 3, 2018
November 2, 2019 November 3, 2018 November 2, 2019 November 3, 2018
Note (13 weeks) (13 weeks) (39 weeks) (39 weeks)
Net income (loss) $ 1,969 $ 2,795 $ (17,452) $ (6,876)
Other comprehensive income (loss),
net of taxes:
Items that may be subsequently
reclassified to profit or loss:
Effective portion of changes in fair
value of cash flow hedges 4, 10 (398) 419 112 3,517
Cost of hedging excluded from
cash flow hedges 4, 10 121 54 359 178
Tax impact of cash flow hedges 4, 10 74 (126) (125) (984)
Total comprehensive income (loss) $ 1,766 $ 3,142 $ (17,106) $ (4,165)
See accompanying notes to unaudited interim condensed consolidated financial statements.
4
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Changes in Shareholders' Equity
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
For the 39 week periods ended November 2, 2019 and November 3, 2018
Accumulated
Retained other
Share Contributed earnings comprehensive
November 2, 2019 (39 weeks) Note capital surplus (deficit) income (loss) Total
Balance, February 2, 2019 $ 196,853 $ 3,975 $ 13,608 $ 268 $ 214,704
Adjustment on adoption of IFRS 16 2 – – (1,267) – (1,267)
Balance, February 3, 2019 $ 196,853 $ 3,975 $ 12,341 $ 268 $ 213,437
Net loss – – (17,452) – (17,452)
Net gain from change
in fair value of cash flow hedges,
net of income taxes – – – 346 346
Transfer of realized gain on cash
flow hedges to inventories, net
of income taxes – – – (970) (970)
Share-based compensation 9 – 527 – – 527
Issuance of shares 7, 9 50 (50) – – –
Balance, November 2, 2019 $ 196,903 $ 4,452 $ (5,111) $ (356) $ 195,888
Accumulated
Retained other
Share Contributed earnings comprehensive
November 3, 2018 (39 weeks) Note capital surplus (deficit) income (loss) Total
Balance, February 4, 2018 $ 195,994 $ 1,675 $ 2,208 $ (904) $ 198,973
Net loss – – (6,876) – (6,876)
Net gain from change
in fair value of cash flow hedges,
net of income taxes – – – 2,710 2,710
Transfer of realized gain on cash
flow hedges to inventories, net
of income taxes – – – (1,083) (1,083)
Share-based compensation 8 – 1,985 – – 1,985
Issuance of shares 8 859 (206) – – 653
Balance, November 3, 2018 $ 196,853 $ 3,454 $ (4,668) $ 723 $ 196,362
See accompanying notes to unaudited interim condensed consolidated financial statements.
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Changes in Shareholders' Equity
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
For the 39 week periods ended November 2, 2019 and November 3, 2018
Accumulated
Retained other
Share Contributed earnings comprehensive
November 2, 2019 (39 weeks) Note capital surplus (deficit) income (loss) Total
Balance, February 2, 2019 $ 196,853 $ 3,975 $ 13,608 $ 268 $ 214,704
Adjustment on adoption of IFRS 16 2 – – (1,267) – (1,267)
Balance, February 3, 2019 $ 196,853 $ 3,975 $ 12,341 $ 268 $ 213,437
Net loss – – (17,452) – (17,452)
Net gain from change
in fair value of cash flow hedges,
net of income taxes – – – 346 346
Transfer of realized gain on cash
flow hedges to inventories, net
of income taxes – – – (970) (970)
Share-based compensation 9 – 527 – – 527
Issuance of shares 7, 9 50 (50) – – –
Balance, November 2, 2019 $ 196,903 $ 4,452 $ (5,111) $ (356) $ 195,888
Accumulated
Retained other
Share Contributed earnings comprehensive
November 3, 2018 (39 weeks) Note capital surplus (deficit) income (loss) Total
Balance, February 4, 2018 $ 195,994 $ 1,675 $ 2,208 $ (904) $ 198,973
Net loss – – (6,876) – (6,876)
Net gain from change
in fair value of cash flow hedges,
net of income taxes – – – 2,710 2,710
Transfer of realized gain on cash
flow hedges to inventories, net
of income taxes – – – (1,083) (1,083)
Share-based compensation 8 – 1,985 – – 1,985
Issuance of shares 8 859 (206) – – 653
Balance, November 3, 2018 $ 196,853 $ 3,454 $ (4,668) $ 723 $ 196,362
See accompanying notes to unaudited interim condensed consolidated financial statements.
5
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Cash Flows
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
For the 39 week periods ended November 2, 2019 and November 3, 2018
November 2, 2019 November 3, 2018
(39 weeks) (39 weeks)
Cash provided from (used in):
Operating activities:
Net loss $ (17,452) $ (6,876)
Items not involving cash:
Depreciation and amortization 29,100 9,130
Share-based compensation expense 527 1,985
Deferred lease recovery – (565)
Amortization of lease intangibles – 407
Interest expense 11,605 3,736
Income taxes recovery (6,117) (1,729)
Gain on lease modification (457) –
Interest paid (4,345) (3,310)
Payment of interest on lease liabilities (6,787) –
Taxes paid (2,159) (2,036)
Change in working capital:
Accounts receivable (1,085) (3,551)
Inventories (20,840) (31,979)
Prepaid expenses 1,983 (1,111)
Accounts payable and accrued liabilities 12,337 8,963
Deferred revenue (1,100) (532)
(4,790) (27,468)
Financing activities:
Issuance of long-term debt 50,000 40,000
Long-term debt financing costs (163) (66)
Repayment of long-term debt (3,737) (3,737)
Finance lease payments – (282)
Payment of principal on lease liabilities, net of tenant allowance (12,775) –
Proceeds from issuance of shares – 653
33,325 36,568
Investing activities:
Additions to fixed assets (19,473) (28,997)
Tenant allowance received – 6,034
(19,473) (22,963)
Increase (decrease) in cash 9,062 (13,863)
Cash and bank indebtedness, beginning of period (10,418) 1,809
Cash and bank indebtedness, end of period $ (1,356) $ (12,054)
See accompanying notes to unaudited interim condensed consolidated financial statements.
ROOTS CORPORATION
Interim Condensed Consolidated Statement of Cash Flows
(In thousands of Canadian dollars, except per share amounts)
(Unaudited)
For the 39 week periods ended November 2, 2019 and November 3, 2018
November 2, 2019 November 3, 2018
(39 weeks) (39 weeks)
Cash provided from (used in):
Operating activities:
Net loss $ (17,452) $ (6,876)
Items not involving cash:
Depreciation and amortization 29,100 9,130
Share-based compensation expense 527 1,985
Deferred lease recovery – (565)
Amortization of lease intangibles – 407
Interest expense 11,605 3,736
Income taxes recovery (6,117) (1,729)
Gain on lease modification (457) –
Interest paid (4,345) (3,310)
Payment of interest on lease liabilities (6,787) –
Taxes paid (2,159) (2,036)
Change in working capital:
Accounts receivable (1,085) (3,551)
Inventories (20,840) (31,979)
Prepaid expenses 1,983 (1,111)
Accounts payable and accrued liabilities 12,337 8,963
Deferred revenue (1,100) (532)
(4,790) (27,468)
Financing activities:
Issuance of long-term debt 50,000 40,000
Long-term debt financing costs (163) (66)
Repayment of long-term debt (3,737) (3,737)
Finance lease payments – (282)
Payment of principal on lease liabilities, net of tenant allowance (12,775) –
Proceeds from issuance of shares – 653
33,325 36,568
Investing activities:
Additions to fixed assets (19,473) (28,997)
Tenant allowance received – 6,034
(19,473) (22,963)
Increase (decrease) in cash 9,062 (13,863)
Cash and bank indebtedness, beginning of period (10,418) 1,809
Cash and bank indebtedness, end of period $ (1,356) $ (12,054)
See accompanying notes to unaudited interim condensed consolidated financial statements.
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