The Oshawa Group Limited Fourth Quarter Report for the 52 Weeks Ended January 24, 1998.ETOBICOKE Etobicoke Former city (pop., 2001: 338,117), southeastern Ontario, Canada. In 1998 it joined the cities of North York, Scarborough, York, and Toronto and the borough of East York to become the City of Toronto. , ONTARIO--(BUSINESS WIRE)--April 2, 1998--The Oshawa Group Oshawa Group was once a leading owner of supermarkets in Ontario, but it was sold off to Sobeys (via Empire Company Limited) in 1998. Stores under Oshawa Group included:
TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :OSH.A.) (ME:OSH.A.) OPERATING RESULTS Fourth quarter net earnings rose 13.1 percent to $18.1 million (48 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. ) from $16.0 million (42 cents per share) last year. Full year net earnings were $54.0 million ($1.42 per share) versus $55.2 million ($1.45 per share). In fiscal '98, Oshawa Oshawa (ŏsh`əwə), city (1991 pop. 129,344), SE Ont., Canada, on Lake Ontario. The production of automobiles, begun in 1907, is the leading industry, since Oshawa is the home site of General Motors of Canada. engaged in major restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). through acquisition, divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). and internal change, which includes a major initiative to merge See mail merge and concatenate. all divisions of the retail/wholesale segment under a new name, Agora agora (ăg`ərə) [Gr.,=market], in ancient Greece, the public square or marketplace of a city. In early Greek history the agora was primarily used as a place for public assembly; later it functioned mainly as a center of commerce. Food Merchants. In light of the scope of these changes, a useful measurement of the Company's underlying performance would be earnings from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the , before interest, income taxes and unusual items (restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and real estate gains). On this basis, fourth quarter earnings from continuing operations advanced 11.4 percent to $29.3 million over last year, bringing fiscal '98 earnings to $95.2 million, an increase of 5.3 percent. Included in these results were pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta expenditures of $16.8 million ($4.5 million in fiscal '97) incurred within a multi-year program to establish specific national departments, supported by standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. enterprise-wide systems and procedures in the areas of retail operations, information technology, buying and distribution. The allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of these costs to Agora's operating earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before has resulted in a reported downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. in operating performance in the Eastern and Central Regions. Prior to the assignment of these costs, improved operating results were achieved for the full year and fourth quarter in all Agora Regions. SERCA SERCA Sarcoplasmic/Endoplasmic Reticulum Calcium Atpase SERCA Sarcoplasmic Reticulum (SR) Ca2+ ATPase (major regulator, Ca2+ homeostasis, contractility, cardiac & skeletal muscle) also generated improved earnings in fiscal '98, aided by recent acquisitions. For the full year, net earnings from continuing operations of $40.1 million ($1.05 per share) in fiscal '98 compared to $54.6 million ($1.43 per share) in fiscal '97. This decrease is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a net restructuring charge of $20.3 million (28 cents per share after tax), compared to a net real estate gain of $8.8 million (17 cents per share after tax) in fiscal '97. Similarly, unusual items reduced fiscal '98 fourth quarter net earnings from continuing operations to $12.5 million (32 cents per share after tax) from $15.9 million (41 cents per share after tax). The fourth quarter net restructuring charge of $8.6 million in fiscal '98 included a $13.9 million (20 cents per share after tax) write down of Agora's information system assets. These legacy systems are being replaced over the next three years with new enterprise-wide business applications. Partially offsetting this charge was a $5.3 million (9 cents per share after tax) gain realized from the disposition Act of disposing; transferring to the care or possession of another. The parting with, alienation of, or giving up of property. The final settlement of a matter and, with reference to decisions announced by a court, a judge's ruling is commonly referred to as disposition, regardless of of 24 non-strategic real estate properties. In the prior year, fourth quarter net earnings from continuing operations included a $3.3 million (4 cents per share after tax) real estate gain in excess of restructuring charges. During the year, the Company disposed dis·pose v. dis·posed, dis·pos·ing, dis·pos·es v.tr. 1. To place or set in a particular order; arrange. 2. of two non-core business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets , Pharma Pharma may be an abbreviation for:
Divisions of a business that have been sold or written off and that no longer are maintained by the business. , yielded profits of $13.9 million after tax (37 cents per share), compared to net earnings of $0.6 million (2 cents per share) last year. 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: sales from continuing operations increased 13.8 percent to $6,813.1 million from $5,987.6 million in fiscal '97. SERCA's acquisition of a western foodservice distributor A foodservice distributor is a company that provides food and non-food products to restaurants, cafeterias, industrial caterers, and hospitals and nursing homes. A foodservice distributor functions as an intermediary between food manufacturers and the foodservice operator , accounted for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. three-quarters Noun 1. three-quarters - three of four equal parts; "three-fourths of a pound" three-fourths common fraction, simple fraction - the quotient of two integers three-quarters npl → of the full year's consolidated sales growth and two-thirds of the fourth quarter sales increase. Agora generated a 5.2 percent increase in same store sales Same Store Sales A statistic used in retail industry analysis. It compares sales of stores that have been open for a year or more. Notes: This statistic allows investors to determine what portion of new sales has come from sales growth and what portion from the opening of for the full year. The Board of Directors approved a quarterly dividend of 14 cents per share, payable on June June: see month. 10, 1998 to shareholders of record on May 15, 1998. In summary, comparative earnings from continuing operations advanced, reversing the previous year's decline. In the year ahead, earnings improvements are anticipated from both Agora and SERCA. -0-
THE OSHAWA GROUP LIMITED
CONSOLIDATED STATEMENTS OF EARNINGS
For the years ended January 24, 1998 and January 25, 1997
(Unaudited)
(in millions of dollars except share information)
---------------------------------------------------------------
52 Weeks
Fiscal Fiscal
1998 1997
---------------------------------------------------------------
Sales and other revenue -
continuing operations $6,813.1 $5,987.6
-------- --------
Cost of sales and expenses 6,651.7 5,837.5
Depreciation and amortization 66.2 59.7
-------- --------
6,717.9 5,897.2
-------- --------
Earnings from continuing operations 95.2 90.4
Interest (7.9) (6.5)
Unusual items (Restructuring costs and
real estate gains) (20.3) 8.8
-------- --------
Earnings before income taxes 67.0 92.7
Income taxes 26.9 38.1
-------- --------
Net earnings from continuing operations 40.1 54.6
Net earnings from discontinued operations 13.9 0.6
-------- --------
Net earnings $ 54.0 $ 55.2
-------- --------
-------- --------
Per share
Net earnings from continuing operations $ 1.05 $ 1.43
Net earnings from discontinued operations 0.37 0.02
-------- --------
Net earnings $ 1.42 $ 1.45
-------- --------
-------- --------
Average number of shares outstanding 38,066,478 38,025,842
CONSOLIDATED STATEMENTS OF EARNINGS (continued)
Fourth Quarter
Fiscal Fiscal
1998 1997
---------------------------------------------------------------
Sales and other revenue -
continuing operations $1,557.8 $1,401.2
-------- --------
Cost of sales and expenses 1,512.2 1,360.2
Depreciation and amortization 16.3 14.7
-------- --------
1,528.5 1,374.9
-------- --------
Earnings from continuing operations 29.3 26.3
Interest (1.2) (1.7)
Unusual items (Restructuring costs and
real estate gains) (8.6) 3.3
(8.6) 5.5
-------- --------
Earnings before income taxes 19.5 27.9
Income taxes 7.0 12.0
-------- --------
Net earnings from continuing operations 12.5 15.9
Net earnings from discontinued operations 5.6 0.1
-------- --------
Net earnings $ 18.1 $ 16.0
-------- --------
-------- --------
Per share
Net earnings from continuing operations $ 0.32 $ 0.41
Net earnings from discontinued operations 0.16 0.01
-------- --------
Net earnings $ 0.48 $ 0.42
-------- --------
-------- --------
COMPOSITION OF SALES AND OTHER REVENUE
AND EARNINGS FROM OPERATIONS
For the years ended January 24, 1998 and January 25, 1997
(Unaudited)
(in millions of dollars)
-------------------------------------------------------------
52 Weeks
Fiscal Fiscal
1998 1997
-------------------------------------------------------------
SALES AND OTHER REVENUE - CONTINUING OPERATIONS
Grocery - AGORA
Eastern Region $ 2,347.3 $ 2,251.0
Central Region 2,003.3 2,020.5
Western Region 1,214.8 1,065.1
-------- --------
5,565.4 5,336.6
Foodservice - SERCA 1,247.7 651.0
-------- --------
$ 6,813.1 $ 5,987.6
-------- --------
-------- --------
Sales from discontinued operations $ 291.8 $ 395.9
-------- --------
-------- --------
EARNINGS FROM CONTINUING OPERATIONS
Grocery - AGORA
Eastern Region $ 50.4 $ 58.9
Central Region (2.2) 0.9
Western Region 36.1 28.6
--------- ---------
84.3 88.4
Foodservice - SERCA 10.9 2.0
--------- ---------
$ 95.2 $ 90.4
--------- ---------
--------- ---------
Gain on sale of discontinued
operations (net of tax) $ 12.6 $ -
Earnings from discontinued
operations (net of tax) 1.3 0.6
--------- ---------
Net earnings from discontinued
operations $ 13.9 $ 0.6
--------- ---------
COMPOSITION OF SALES AND OTHER REVENUE (cont'd)
Fourth Quarter
Fiscal Fiscal
1998 1997
-------------------------------------------------------------
SALES AND OTHER REVENUE - CONTINUING OPERATIONS
Grocery - AGORA
Eastern Region $ 534.8 $ 522.4
Central Region 456.7 449.8
Western Region 279.4 250.9
-------- --------
1,270.9 1,223.1
Foodservice - SERCA 286.9 178.1
-------- --------
1,557.8 1,401.2
-------- --------
-------- --------
Sales from discontinued operations $ 0.6 $ 98.1
-------- --------
-------- --------
THE OSHAWA GROUP LIMITED
CONDENSED CONSOLIDATED BALANCE SHEETS
As at January 24, 1998 and January 25, 1997
(Unaudited)
(in millions of dollars)
Fourth Quarter
Fiscal 1998 Fiscal 1997
-------------------------------------------------------------
-------------------------------------------------------------
Assets
Current assets $ 709.1 $ 606.8
Fixed assets 501.8 509.7
Other assets 294.7 219.2
Net assets of discontinued operations - 99.7
--------- ---------
$ 1,505.6 $ 1,435.4
--------- ---------
--------- ---------
Liabilities & Shareholders' equity
Current liabilities $ 446.6 $ 415.0
Long-term debt 128.6 120.0
Deferred income taxes 36.2 53.9
Unearned revenue 36.4 24.6
Shareholders' equity 857.8 821.9
--------- ---------
$ 1,505.6 $ 1,435.4
--------- ---------
--------- ---------
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
Years ended January 24, 1998 and January 25, 1997
(Unaudited)
(in millions of dollars)
52 Weeks
Fiscal 1998 Fiscal 1997
-------------------------------------------------------------
-------------------------------------------------------------
Cash provided from:
Operating activities:
Net earnings from
continuing operations $ 40.1 $ 54.6
Charges to earnings not affecting cash:
Depreciation and amortization 66.2 59.7
Restructuring charges 17.5 -
Gain on sale of real estate (5.3) (14.3)
Amortization of unearned revenue (6.5) (4.9)
Deferred income taxes (17.7) 8.1
--------- --------
94.3 103.2
Changes in working capital
components other than cash (5.9) 5.2
--------- --------
88.4 108.4
Discontinued operations 12.9 7.3
--------- --------
Cash flow from operations 101.3 115.7
--------- --------
Investing activities:
Purchase of fixed assets (130.4) (134.9)
Cost of acquisitions (60.0) (30.4)
Loans and mortgages receivable 7.2 (12.7)
Deferred pension costs (4.2) (4.0)
Proceeds from sale of discontinued
operations 110.4 -
Net proceeds from sale of real estate 46.1 54.8
Disposal of fixed assets 5.9 13.2
Other 6.3 (2.7)
--------- --------
Total cash used for investing
activities (18.7) (116.7)
Discontinued operations (9.7) (13.3)
--------- --------
(28.4) (130.0)
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(cont'd)
52 Weeks
Fiscal 1998 Fiscal 1997
Financing activities:
Long-term debt 9.0 (2.8)
Issue of Class A shares 3.0 0.7
------ -------
12.0 (2.1)
------ -------
Dividends (21.1) (20.4)
------ -------
Increase (decrease) in cash 63.8 (36.8)
Cash (bank indebtedness),
beginning of year (15.9) 20.9
------ -------
Cash (bank indebtedness),
end of year $ 47.9 $ (15.9)
------ -------
------ -------
Represented by:
Cash and short-term investments $ 65.0 $ 20.1
Bank indebtedness (17.1) (36.0)
------ -------
$ 47.9 $ (15.9)
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CONTACT: The Oshawa Group Limited Allister Allister was a pop punk band from Chicago, Illinois. The four-piece formed in 1996 and were one of the first bands to sign to Drive-Thru Records. Besides releasing three studio albums — 1999's Dead Ends and Girlfriends, 2002's Last Stop Suburbia P. Graham, 416/236-1971 416/236-2071 (FAX) or The Oshawa Group Limited Jonathan Jonathan (jŏn`əthən) [short for Jehonathan, Heb.,=Yahweh has given]. 1 In the Bible, Saul's son and David's friend, both killed at the battle of Mt. Gilboa. David showed kindness to his son Mephibosheth. A. Wolfe, 416/236-1971 416/236-2071 (FAX) |
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