CAD Thousands
|
Historical
|
Company Projections
|
|
02/28/2010
|
02/28/2011
|
02/28/2012
|
02/28/2013
|
02/28/2014
|
02/28/2015
|
Statement Date
|
Actual
|
Actual
|
Actual
|
Projected
|
Projected
|
Projected
|
|
|
|
|
|
|
|
Income Statement
|
|
|
|
|
|
|
Revenue
|
4,819,589
|
4,804,584
|
4,884,016
|
5,128,216.8
|
5,384,627.64
|
5,653,859.02
|
Growth
|
-
|
(.31%)
|
1.65%
|
5.00%
|
5.00%
|
5.00%
|
Gross Profit
|
1,371,821
|
1,349,283
|
1,331,676
|
1,398,259.8
|
1,468,172.79
|
1,541,581.43
|
GM %
|
28.46%
|
28.08%
|
27.27%
|
27.27%
|
27.27%
|
27.27%
|
EBITDA
|
336,318
|
240,555
|
162,363
|
208,900
|
240,300
|
278,475
|
Operating Profit
|
223,206
|
(31,443)
|
41,295
|
91,295
|
141,295
|
191,295
|
Net Income
|
142,821
|
(74,773)
|
19,083
|
28,455
|
43,296
|
62,300
|
RONA was hit hard during the tail-end of the recession, consequently causing contraction in the 2011 fiscal year. With a projected bounce-back in growth, revenues are expected to return to healthy levels, allowing for the proper financial support needed by the international expansion. Net Income continues its strong climb upwards as the company implements its new development strategies focusing on efficiency and effective store management. Once operational, the Austrian expansion is expected to have a significant positive impact on revenues and profitability, allowing RONA to build more value for shareholders.
|
|
|
|
|
|
|
Balance Sheet
|
|
|
|
|
|
|
Cash
|
75,577
|
17,149
|
21,600
|
22,680
|
23,814
|
25,005
|
Total Assets
|
2,921,620
|
2,780,378
|
2,806,458
|
2,946,781
|
3,094,120
|
3,248,826
|
Total Liabilities
|
1,009,823
|
824,754
|
922,882
|
969,026.1
|
1,017,477.4
|
1,068,351.3
|
Debt
|
467,430
|
256,710
|
328,040
|
344,442
|
361,664.1
|
379,747.3
|
Equity
|
1,955,624
|
1,911,797
|
1,883,576
|
1,977,754.8
|
2,076,642.5
|
2,180,474.7
|
TNW
|
1,955,624
|
1,911,797
|
1,883,576
|
1,977,754.8
|
2,076,642.5
|
2,180,474.7
|
|
|
|
|
|
|
|
Total Debt / EBITDA
|
1.4
|
1.1
|
1.6
|
2.2
|
2.1
|
2.4
|
Debt / Equity
|
2.9
|
3.1
|
3.7
|
4.2
|
4.4
|
3.9
|
Debt/TNW
|
2.9
|
3.1
|
3.7
|
4.2
|
4.4
|
3.9
|
EBITDA / Int. Exp.
|
-
|
25.7
|
16.3
|
18.2
|
19.4
|
18.5
|
RONA shows a good propensity to pay its debt as seen through the total debt / EBITDA ratio. The ratio shows the amount of years necessary to pay back all debt given constant debt and earnings figures. The ratio shows RONA’s above-average ability to pay down its debt. The debt/equity ratio analyzes the organization’s leverage and the amount of growth derived from debt. RONA’s ratio is high, indicating a reliance on debt to create growth; however a high debt/equity is not unheard of within the industry. RONA has a relatively high debt/TNW ratio, signifying its use of debt in relation to physical assets. The high ratio is less concerning given the established reputation of RONA and the amount of fixed assets and inventory that it holds in conducting its day-today operations. The EBITDA / Interest Expense ratio is used to determine the durability of a company by analyzing its ability to pay interest. The high ratio shows that RONA was able to pay its interest 16 times over in 2012, exhibiting the company’s strong propensity to pay its debts.
CAD Thousands
|
Historical
|
Company Projections
|
|
02/28/2010
|
02/28/2011
|
02/28/2012
|
02/28/2013
|
02/28/2014
|
02/28/2015
|
Statement Date
|
Actual
|
Actual
|
Actual
|
Projected
|
Projected
|
Projected
|
Cash Flow Analysis
|
|
|
|
|
|
|
CFO
|
138,070
|
230,245
|
125,547
|
156,450
|
196,200
|
223,746
|
CAPEX
|
(86,370)
|
(109,420)
|
(146,280)
|
(153,594)
|
(161,274)
|
(169,337)
|
Free Cash Flow
|
51,700
|
120,825
|
(20,733)
|
2,856
|
34,926
|
54,409
|
Dividends
|
9,119
|
2,527
|
2,258
|
1,984
|
1,765
|
1,420
|
Mandatory Debt Repayments
|
176,482
|
159,489
|
143,987
|
151,186
|
158,746
|
166,683
|
Free Cash After Dividends & Debt Repayment
|
75,577
|
17,149
|
21,600
|
22,680
|
23,814
|
25,005
|
New Debt Issuance
|
-
|
-
|
-
|
25,000
|
-
|
-
|
|
|
|
|
|
|
Current Ratio
|
2.62
|
2.41
|
2.42
|
2.45
|
2.45
|
2.49
|
Quick Ratio
|
0.8
|
0.81
|
0.78
|
0.8
|
0.8
|
0.8
|
RONA’s cash flow from operations (CFO) has remained strong and is forecasted to maintain its stability over the medium-term. Strong CFO shows RONA’s ability to create consistent positive income from its retail operations. RONA’s free cash flow (FCF) is expected to bounce back considerably after the company’s downturn in 2011, allowing RONA to pursue the European investment opportunity in a manner that is healthy for the company. Historically, RONA has had high FCF, exhibiting its ability to generate positive cash flows. The company had a new debt issuance in 2013 but this has not created significant negative effects for the company.
RONA had a current ratio of 2.42 in 2012 and has remained relatively stable historically. This reflects RONA’s solid ability to pay off short-term liabilities with its short-term assets like cash, receivables or inventory. RONA’s current ratio exhibits good liquidity for the company. RONA’s quick ratio was 0.78 in 2011, which is in line with industry standards. Due to the high inventory necessary for operations, the quick ratios within the home improvement industry are usually substantially lower than the current ratios. The ratios show that RONA is a healthy organization able to operate in an effective way.
Share with your friends: |