North West Company Fund Announces Financial Results.WINNIPEG Winnipeg, city, Canada Winnipeg (wĭn`ĭpĕg), city (1991 pop. 616,790), provincial capital, SE Man., Canada, at the confluence of the Red and Assiniboine rivers. , Manitoba--(BUSINESS WIRE)--March 25,1998--(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :NWF NWF National Wildlife Federation NWF National Wrestling Federation (Lake Villa, Illinois) NWF Nonsense Word Fluency NWF Numerical Weather Forecasting NWF Native Warez Forum .UN.) (WINNIPEG STOCK EXCHANGE:NWF.UN.) North West Company Fund (the "Fund") today reported 1997 fourth quarter and year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. earnings for the period ended January January: see month. 31, 1998. CONSOLIDATED con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: RESULTS Fourth quarter earnings increased 28.1 percent to $7.3 million or $0.49 per unit, compared to $0.38 per share last year. Fourth quarter consolidated revenues of $178.3 million were $18.9 million or 11.8 percent higher than last year. Revenues and expenses were impacted by the extra week in the fourth quarter due to the 53 week fiscal calendar this year versus 52 weeks last year. Adjusting for the extra week, total revenues for the quarter increased by 5.5 percent. Earnings for the year at $21.0 million increased 17.8 percent or $3.2 million to $1.40 per unit compared to $1.18 per share last year. CANADIAN Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. OPERATIONS Canadian revenues at $146.7 million increased 11.5 percent in the fourth quarter compared to last year while operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. was down by 16.6 percent to $12.5 million. Food sales achieved a 10.7 percent increase in comparable stores sales in the quarter. General merchandise MERCHANDISE. By this term is understood all those things which merchants sell either wholesale or retail, as dry goods, hardware, groceries, drugs, &c. It is usually applied to personal chattels only, and to those which are not required for food or immediate support, but such as remain sales reported a comparable stores increase of 7.8 percent. After adjusting for the extra week, total revenues for the fourth quarter increased by 5.4 percent. Food gross margin rates in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of gained from the consolidation of more volume through the Company's own distribution system. Sharper everyday and promotional pricing combined with a continued higher blend “Blending” redirects here. For alpha blending, see Alpha compositing. In linguistics, a blend is a word formed from parts of two other words. These parts are sometimes, but not always, morphemes. of hardlines and Selections catalogue sales helped to stimulate stimulate /stim·u·late/ (stim´u-lat) to excite functional activity. stim·u·late v. To arouse a body or a responsive structure to increased functional activity. top line growth in general merchandise but at lower margin rates. Higher administration costs and losses in the Company's Inuit Art Prehistoric period Around 4000 BC nomads crossed over the Bering Strait from Siberia into the Canadian Arctic, Greenland, and Newfoundland. Very little remains of them, and only a few preserved artifacts carved in ivory could be considered works of art. Marketing businesses, although non-recurring in nature, had a significant impact on the shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. in operating profit in the quarter. ALASKAN OPERATIONS (stated in U.S. dollars) Alaska Commercial Company The Alaska Commercial Company was a company that operated retail stores in Alaska during the early period of Alaska's ownership by the United States. It began when businessmen from San Francisco, California, using the name Hutchinson, Kohl & Company, bought the commercial interests (AC) continued to achieve improved results, recording a fourth quarter operating profit of $283,000 compared to an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $717,000 last year. As in the first three quarters, AC's food business delivered strong market share gains, with comparable stores sales increasing by 14.0 percent. Sales in general merchandise increased in most hardlines categories but were down 7.5 percent overall due to poor apparel and snow machine sales and the planned elimination of unprofitable categories. After adjusting for the extra week, total revenues for the quarter increased by 5.6 percent. -0-
HIGHLIGHTS
- The Fund increased its quarterly distribution to $0.25 per unit
commencing March 15, 1998 and is expected to be maintained at
that level for 1998. A fifth distribution for 1998, payable in
January 1999, will be approximately $0.25 per unit and is
expected to be made by a distribution of units of the Fund.
- NWC moved forward with its strategy development project, focused
on building a stronger competitive positioning in Canada. The
rollout of key initiatives from this project will start in the
first quarter of 1998.
- NWC's "People First" program exceeded its 1997 target of
increasing Aboriginal representation in store management,
achieving an increase of 33 percent, (from 91 to 128 positions).
- The Company organized "Spirits in the Sun", a Canadian Indigenous
Art Festival held in Scottsdale, Arizona to help raise
international awareness of Canadian aboriginal art.
- NWC announced the appointment, effective April 20, 1998, of
Dallas Thorsteinson as Executive Vice-President, responsible for
Marketing, Transportation and Distribution in Canada. Dallas
brings over 15 years of progressive experience in packaged goods,
supermarket and convenience store retailing.
- AC was chosen to receive the Alaska Large Employer of the Year
Award in recognition of exceptional efforts to employ people with
disabilities and to comply with the Americans Disabilities Act.
- Taxable unit holders are reminded that the conversion of NWC
shares to NWF trust units on March 27, 1997, was a taxable event.
This will result in a capital gain or loss based on the fair
market value of the trust units of $11.70 at that date.
CONSOLIDATED BALANCE SHEETS
(unaudited, in thousands of Canadian dollars)
--------------------------------------------------------------
(Comparative figures are those of The North West Company Inc.)
January 31, 1998 January 25, 1997
ASSETS
Current assets $213,659 $184,836
Capital assets 198,074 184,268
Other assets 13,403 14,632
-------- --------
$425,136 $383,736
-------- --------
-------- --------
LIABILITIES
Current liabilities $121,398 $92,585
Long-term debt 134,476 135,228
Deferred income taxes 9,102 8,570
-------- --------
264,976 236,383
Equity 160,160 147,353
-------- --------
$425,136 $383,736
-------- --------
-------- --------
CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED EARNINGS
(unaudited, in thousands of Canadian dollars)
(Comparative figures are those of The North West Company Inc.)
14 Weeks 13 Weeks 53 Weeks 52 Weeks
Ended Ended Ended Ended
Jan. 31, Jan. 25, Jan. 31 Jan. 25,
1998 1997 1998 1997
Sales and other revenue
Canadian operations $146,667 $131,593 $497,997 $474,465
Alaskan operations 31,626 27,825 118,713 116,118
---------------------------------------
Operating profit
before amortization
(EBITDA) 178,293 159,418 616,710 590,583
Canadian operations 16,518 18,750 53,478 57,198
Alaskan operations 909 (470) 3,620 2,159
Amortization
Canadian operations (3,984) (3,729) (15,525) (14,181)
Alaskan operations (505) (511) (1,986) (1,968)
---------------------------------------
OPERATING PROFIT (EBIT) 12,938 14,040 39,587 43,208
Interest (3,466) (2,685) (12,298) (11,843)
Provision for
income taxes (2,157) (5,644) (6,252) (13,507)
---------------------------------------
EARNINGS FOR THE PERIOD 7,315 5,711 21,037 17,858
Retained earnings,
beginning of period 7,115 49,339 53,550 42,400
Distributions/Dividends - (1,500) (7,425) (6,031)
Conversion to Fund
capital (Note 2) (52,732)
Premium on shares
purchased for
cancellation (677)
---------------------------------------
RETAINED EARNINGS,
END OF PERIOD $14,430 $53,550 $14,430 $53,550
---------------------------------------
---------------------------------------
EARNINGS PER UNIT/SHARE $0.49 $0.38 $1.40 $1.18
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1. Accounting Principles
These unaudited consolidated financial statements are based on
accounting principles consistent with those used and described in the
annual financial statements of North West Company Fund (the "Fund").
2. North West Company Fund
Effective March 27, 1997, under the arrangement as described in
the annual report, shares of NWC were exchanged on a one-for-one basis
for units of North West Company Fund. The share capital and retained
earnings of NWC were converted into capital of the Fund as follows:
NWC share capital $93,605
Conversion of retained earnings 52,732
Expenses of the arrangement (1,500)
--------
$144,837
--------
--------
3. Basis of Consolidation
The consolidated financial statements of the Fund include the
accounts of NWC and its subsidiaries. All inter- entity amounts and
transactions have been eliminated on consolidation.
4. Comparative Amounts
The comparative amounts have been reclassified to conform with
the current year's presentation.
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(unaudited, in thousands of Canadian dollars)
-------------------------------------------------------------
(Comparative figures are those of The North West Company Inc.)
14 Weeks 13 Weeks 53 Weeks 52 Weeks
Ended Ended Ended Ended
Jan. 31, Jan. 25, Jan. 31 Jan. 25,
1998 1997 1998 1997
CASH PROVIDED BY
(USED IN)
Operating Activities
Earnings for
the period $7,315 $5,711 $21,037 $17,858
Non-cash items
Amortization 4,489 4,240 17,511 16,149
Deferred income
taxes 2,955 (527) 532 (1,017)
Amortization of bond
warrant proceeds
and interest rate
fixing payment (464) (509) (1,960) (2,035)
Gain on disposal
of capital assets (316) (66) (1,128) (368)
---------------------------------------
Cash flow 13,979 8,849 35,992 30,587
Changes in non-cash
working capital
components 7,259 8,166 (14,677) 1,126
---------------------------------------
Operating activities 21,238 17,015 21,315 31,713
---------------------------------------
Investing Activities
Purchase of capital
assets (5,749) (8,145) (28,818) (22,994)
Proceeds from sale
of capital assets 55 973 2,161 1,653
Other assets 2,364 745 10 (1,865)
---------------------------------------
Investing activities (3,330) (6,427) (26,647) (23,206)
---------------------------------------
Financing Activities
Expenses of the
arrangement - - (1,500) -
Purchase of shares
for cancellation - - - (3,916)
Repayment of
long-term debt (123) 20 (328) (5,728)
---------------------------------------
Financing activities (123) 20 (1,828) (9,644)
---------------------------------------
Distributions/Dividends (3,300) (1,500) (8,925) (6,094)
---------------------------------------
CHANGES IN CASH POSITION 14,485 9,108 (16,085) (7,231)
---------------------------------------
Effect of currency
translation
adjustment (2,635) 132 (3,766) 1,155
Cash position,
beginning of period (67,811) (45,350) (36,110) (30,034)
---------------------------------------
CASH POSITION,
END OF PERIOD ($55,961) ($36,110) ($55,961)($36,110)
---------------------------------------
---------------------------------------
CASH POSITION IS
COMPRISED OF
Cash $10,376 $3,409 $10,376 $3,409
Bank advances and
short-term notes (66,337) (39,519) (66,337) (39,519)
---------------------------------------
($55,961) ($36,110) ($55,961)($36,110)
---------------------------------------
---------------------------------------
-0- The North West Company operates in Canada as Northern and in Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States as AC Value Centers, and is North America's leading retailer of food, family apparel and general merchandise in northern communities. The Fund trades on the Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing and Winnipeg Stock Exchanges under the symbol "NWF.UN". CONTACT: North West Company Fund Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. Eggertson, 204/934-1503 204/934-1455 (FAX) geggertson@northwest For names and places containing the slightly longer word 'northwestern' (or variants), see . Northwest or north west is the ordinal direction halfway between north and west on a compass. It is the opposite of southeast. .ca |
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