Canadian Tire Corporation, Limited reported second
quarter net earnings of $92.2 million, an increase of 14.1 percent
$80.8 million in 2004. Excluding non-operating gains and losses, net
were $84.8 million, an increase of 16.3 percent compared to $72.8
Basic earnings per share were up 12.9 percent in the second quarter to
$1.13 compared to $1.00 for the previous year. Excluding non-operating gains
and losses, adjusted earnings per share increased 15.1 percent to $1.04
compared to $0.90 for the same period last year.
“Healthy retail sales across our businesses and a concerted effort to
manage expenses contributed to strong earnings growth for the quarter,” said
Wayne C. Sales, president and CEO. “Strong seasonal sales from Canadian Tire
Retail and double-digit same store sales growth from Mark’s defined our
performance for the quarter. PartSource experienced double-digit comparable
store sales growth with significant commercial sales increases during the
quarter. Continued growth of the Canadian Tire MasterCard and personal loan
portfolios contributed to a nearly 20 percent increase in the
of Financial Services, while Petroleum experienced very strong gasoline
volumes and non-gasoline sales, partially off-setting the impact of higher
operating expenses related to the expansion of the gas bar network over the
past year,” added Sales.
Since the end of the second quarter of 2004, Financial Services’ total
managed portfolio of credit card and personal loan receivables grew by
19.8 percent, from $2.6 billion to $3.1 billion. The growth was due to
continued increases in Canadian Tire MasterCard(R)average account
well as further expansion of the personal loan portfolio.
average balance per customer account, including credit card and personal
loan balances, grew from $1,384 to $1,661. Increasing the average
account is one of the most significant opportunities to grow Financial
Canadian Tire’s personal loan portfolio grew during the quarter and
comprises 8.0 percent of the total managed portfolio as at the end of the
period. No receivables were recorded for the comparable period as the
loan portfolio was initially tested in the latter part of the second quarter
of 2004 and fully launched in the third quarter of that year.
Financial Services’ pre-tax earnings of $43.4 million were up 9.6
from the second quarter of 2004. The improved results reflect an increase in
average account balances, growth of the insurance business and
the operating expense ratio, offset by a $2.0 million investment to grow the
personal loan portfolio.
Portfolio write-offs increased during the quarter but remained
with the first quarter rate and within the targeted range of 5 to 6
a rolling 12-month basis. Periodic fluctuations within the target range
due to economic influences such as job growth and bankruptcy rates.
Canadian Tire Corporation, Limited (TSX: CTR.NV, CTR), Canada’s most-
shopped general merchandise retailer, operates more than 1,100 stores, gas
bars and car washes in an inter-related network of businesses engaged in
retail, financial services and petroleum. Canadian Tire Retail, with 458
stores operated by Associate Dealers across Canada offers a unique mix of
products and services through three specialty categories in which the
organization is the market leader – Automotive, Sports and Leisure, and Home
Products. www.canadiantire.ca offers Canadians the opportunity to shop
PartSource is an automotive parts specialty chain with 48 stores designed to
meet the needs of purchasers of automotive parts – professional automotive
installers and serious do-it-yourselfers. Canadian Tire Petroleum is one of
the country’s largest and most productive independent retailers of gasoline,
operating 253 gas bars, which include 242 convenience stores and kiosks, and
62 car washes. Mark’s Work Wearhouse is one of the country’s leading apparel
retailers operating 333 stores in Canada. Under the Clothes that Work(TM)
banner, Mark’s sells apparel and footwear in work, work-related, casual and
active-wear categories, as well as health-care and business-to-business
apparel. www.marks.com offers Canadians the opportunity to shop online.
Canadian Tire Financial Services manages almost 3.8 million Canadian Tire
MasterCard accounts and markets related financial products and services for
retail and petroleum customers. More than 48,000 Canadians work across
Canadian Tire’s organization from coast-to-coast in the enterprise’s retail,
financial services, and petroleum businesses.
For complete details on Canadian Tires’ latest results visit CardData