Canadian convenience retailer Couche-Tard has booked a jump in third-quarter earnings, with a higher contribution from merchandise sales boosting the bottom line.

Net earnings during the third-quarter rose 28.1% to C$182.3m. Excluding one-time items, net earnings would have been approximately $175m compared with$153m for the third quarter of fiscal 2013. EBITDA increased by 7.5% compared to the corresponding period of the previous fiscal year, reaching $425.1m.

Sales dropped to $11.1bn, a decrease of 3.3% on the year. Couche-Tard attributed the decline to the , divesture of our European Liquefied Petroleum Gas business. Same-store merchandise revenues up 3.8% in the U.S., 0.9% in Europe and 2.2% in Canada, the company stressed.

Seperately, the group said long-time chief executive Alain Bouchard will stand down and take on a role as executive chairman. He will be replaced by COO Brian Hannasch.

Show the press release

Alimentation Couche-Tard announces its results for its third quarter of fiscal year 2014

  • Results for the third quarter of fiscal 2014 include those of Statoil Fuel & Retail for the period fromOctober 14, 2013 to January 31, 2014 (110 days) while results for the third quarter of fiscal 2013 included Statoil Fuel & Retail's results for a period of 123 days.
  • Net earnings of $182.3 million for the third quarter of fiscal 2014, up 28.2%. Excluding non-recurring items for both comparable periods, net earnings would have been approximately $175.0 million compared with$153.0 million for the third quarter of fiscal 2013, an increase of 14.4%.
  • Diluted net earnings per share of US$0.96 for the third quarter of fiscal 2014 compared with US$0.75, in the third quarter of fiscal 2013, up 28.0%.
  • Adjusted diluted net earnings per share of US$0.92 for the third quarter of fiscal 2014 compared withUS$0.81 for the third quarter of fiscal 2013, up 13.6%.
  • Same-store merchandise revenues up 3.8% in the U.S., 0.9% in Europe and 2.2% in Canada.
  • Merchandise and service gross margin stood at 32.7% in the U.S., at 43.2% in Europe and at 32.7% inCanada.
  • Same-store road transportation fuel volume up 1.3% in the U.S., 2.7% in Europe and 2.1% in Canada.
  • Road transportation fuel gross margin stood at US17.02¢ per gallon in the United States, at US11.44¢ per litre in Europe and at CA5.87¢ per litre in Canada.
  • A three-for-one split of all of the Corporation's issued and outstanding Class "A" and "B" shares has been approved by regulatory authorities and will become effective on April 14, 2014.

LAVAL, QCMarch 18, 2014 /PRNewswire/ - For its third quarter of fiscal 2014, Alimentation Couche-Tard Inc. (TSX: ATD.A ATD.B) announces net earnings of $182.3 million, up $40.1 million or 28.2%, equivalent to $0.96per share on a diluted basis, an increase of $0.21 per share or 28.0% over diluted net earnings per share of the third quarter of fiscal 2013. Some items affected the results of the third quarter of fiscal 2014, mainly a foreign exchange gain of $10.4 million, a $6.8 million impairment charge over a non-operational lubricant plant inPoland, a negative goodwill of $6.6 million as well as a curtailment gain on pension plans obligation. On the other hand, the results from the third quarter of fiscal 2013 included a foreign exchange loss of $13.6 million. Excluding these items as well as the negative goodwill for the third quarter of fiscal 2013 and acquisition costs from both comparable quarter results, the diluted net earnings per share would have been $0.92 for the third quarter of fiscal 2014 compared with $0.81 for the third quarter of fiscal 2013, an increase of 13.6%. This increase is mainly attributable to the growing contribution of merchandise and service revenues, to higher road transportation fuel volumes, to higher road transportation fuel gross margins in Europe as well as to the contribution from acquisitions. These items, which contributed to the growth in net earnings, were partially offset by the negative net impact related to the translation of earnings from Couche-Tard's Canadian and European operations into the US dollar as well as by the fact that the third quarter of fiscal 2014 includes results of Statoil Fuel & Retail for a period of 110 days compared with 123 days for the comparable period. All financial information is in US dollars unless stated otherwise.

"The third quarter earnings benefited from strong organic growth from merchandise and services as well as from road transportation fuel across all of our markets despite unfavorable weather in several of our markets, fewer number of days from our European operations included in our net earnings and the negative impact from foreign currency translation into the U.S. dollar. With this organic growth, along with higher road transportation fuel margins in Europe as well as our ongoing cost control we increased our adjusted net earnings by almost 14% without a significant increase in our store count. Our European operations continue to perform well with the implementation in our stores of new and sustainable merchandising strategies and with the help of the strong growth in food service sales. We also benefited from the contribution from recent acquisitions" declared Mr. Bouchard, President and Chief Executive Officer.

Raymond Paré, Vice-President and Chief Financial Officer, indicated: "With the cash flows associated with the strong third quarter results we keep improving our financial position and our indebtedness ratio. We believe we have the financial flexibility to materialize potential opportunities while staying focused on our commitment towards maintaining a strong balance sheet and a reasonable level of debt. In addition, the implementation of our new IT platform in Europe is about to be completed. Considering the magnitude and complexity of this task, we are proud of the work accomplished by our European team."

The Board of directors of Couche-Tard has approved a three-for-one split of its class A multiple voting shares (Symbol: ATD.A) (the "Class A Shares") and the class B subordinate voting shares (Symbol: ATD.B) (the "Class B Shares") (the "Share Split"). Couche-Tard also confirms that it has received the regulatory approval from the Toronto Stock Exchange ("TSX") with respect to the Share Split.

The record date of the stock split will be Monday, April 14, 2014, and the payment date will be Tuesday, April 22, 2014, at which time Couche-Tard's transfer agent CST Trust Company ("CST") will send shareholders of record a physical share certificate representing two additional Class A and Class B Shares, respectively for each Class A and Class B Share held as of such record date. In addition, CST will electronically issue the appropriate number of Class A and Class B Shares to CDS & Co for distribution to the non-registered shareholders.

The TSX has determined to implement the "due bill" trading procedure in connection with the Share Split. A due bill is an entitlement attached to listed securities undergoing a material corporate action, such as a share split. In this case, anyone purchasing a Class A Share or a Class B Share of Couche-Tard during the period commencing two trading days before the record date (i.e. Thursday, April 10, 2014) and ending on the payment date (i.e. Tuesday, April 22, 2014) inclusively (the "due bill period") shall receive a payable right. Any trades that are executed on the TSX during the due bill period will be identified to ensure purchasers of Couche-Tard Class A Shares or a Class B Shares receive the entitlement.

The Class A Shares and the Class B Shares will commence trading on an "post-split" basis on Wednesday, April 23, 2014, as of which date purchases of Couche-Tard's Class A Shares and a Class B Shares will no longer have an attaching entitlement.

The due bill redemption date will be Friday, April 25, 2014.

After the record date of the stock split (i.e. April 14, 2014) and as a result of the Share Split, Couche-Tard's quarterly dividend, as such dividend may be declared by the Board of directors, will go from $0.10 to $0.0333per share for each of the Class A Shares and Class B Shares.

Overview of the Third Quarter of Fiscal 2014

Net earnings amounted to $182.3 million for the third quarter of fiscal 2014, up 28.2% over the corresponding period of fiscal 2013. Some items affected the results of the third quarter of fiscal 2014, mainly a foreign exchange gain of $10.4 million, a $6.8 million impairment charge over a non-operational lubricant plant inPoland, a negative goodwill of $6.6 million as well as a curtailment gain on pension plans obligation. On the other hand, the results from the third quarter of fiscal 2013 included a foreign exchange loss of $13.6 million. Excluding these items as well as the negative goodwill for the third quarter of fiscal 2013 and acquisition costs from both comparable quarter results, the third quarter of fiscal 2014 net earnings would have been approximately $175.0 million ($0.92 per share on a diluted basis) compared to $153.0 million ($0.81 per share on a diluted basis) for the corresponding period of fiscal 2013, an increase of $22.0 million, or 14.4%. This increase is mainly attributable to the nice growth in both same-store merchandise revenues and road transportation fuel volumes, to strong road transportation fuel margins in Europe as well as to the contribution from acquisitions. These items, which contributed to the growth in net earnings, were partially offset by the negative net impact from the translation of revenues and expenses from our Canadian and European operations into the United States dollar following the appreciation of the United States dollar, namely against the Canadian dollar and the Norwegian Krone, lower revenues following the divesture of our Liquid Petrolum Gas ("LPG") business in December 2012 as well as by the fact that the third quarter of fiscal 2014 includes only 110 days of Statoil Fuel & Retail results compared to 123 days for the third quarter of fiscal 2013. Results of the third quarter of fiscal 2014 were also negatively impacted by difficult and unusual weather conditions in many regions of the United States and Canada.

Statoil Fuel & Retail

Quarterly results

Our results for the 16 and 40-week periods ended February 2, 2014 include those of Statoil Fuel & Retail for the period beginning October 14, 2013 and ending January 31, 2014 and for the period beginning May 1st, 2013 and ending January 31, 2014, respectively. Our results for the 16 and 40-week periods ended February 3, 2013include those of Statoil Fuel & Retail for the period beginning October 1st, 2012 and ending January 31, 2013and for the period beginning June 20, 2012 and ending January 31, 2013, respectively. Thus, our results for the third quarter of fiscal 2014 include those of Statoil Fuel & Retail for a period of 110 days compared with 123 days for the third quarter of fiscal 2013 while our results of the 40-week periods ended February 2, 2014 andFebruary 3, 2013 include those of Statoil Fuel & Retail for a period of 275 and 226 days, respectively. For the 40-week period ended February 2, 2014, the contribution from our acquisitions, which corresponds to the difference between actual results of the first quarters of 2014 and 2013, is therefore also impacted by the difference between the number of days of Statoil Fuel & Retail's results included in our consolidated results.

Our consolidated balance sheet and store count as of February 2, 2014 includes Statoil Fuel & Retail's balance sheet and store count as of January 31, 2014, as adjusted for significant transactions, if any, that occurred between those two dates.

The following table provides an overview of Statoil Fuel & Retail's accounting periods that will be incorporated in our upcoming consolidated financial statements:

 

Couche-Tard Quarters   Statoil Fuel & Retail Equivalent Accounting Periods   Statoil Fuel & Retail Balance
Sheet Date (1)
12-week period that will end April 27, 2014
(4th quarter of fiscal 2014)
  February, March and April 2014   April 30, 2014
12-week period that will end July 20, 2014
(1st quarter of fiscal 2015)
  From May 1st, 2014 to July 20, 2014   June 30, 2014
12-week period that will end October 12, 2014
(2nd quarter of fiscal 2015)
  From July 21, 2014 to October 12, 2014   September 30, 2014
16-week period that will end February 1st, 2015
(3rd quarter of fiscal 2015)
  From October 13, 2014 to October 31, 2014, November and December 2014 and January 2015   January 31, 2015

 

(1) The consolidated balance sheet will be adjusted for significant transactions, if any, occurring between Statoil Fuel & Retail balance sheet date and Couche-Tard balance sheet date.

We expect that the work toward the alignment of Statoil Fuel & Retail's accounting periods with those of Couche-Tard should start once we have finalized replacing Statoil Fuel & Retail financial systems, which is now scheduled to be completed at the beginning of fiscal 2015.

Synergies and cost reduction initiatives

Since the acquisition of Statoil Fuel & Retail, we have been actively working on identifying and implementing available synergies and cost reduction opportunities. Our analysis shows that opportunities are numerous and promising. Some can be implemented immediately while others may take more time to implement since they require rigorous analysis and planning.  The finalization of the implementation of a new ERP system will also be required before we can put in place some of the identified opportunities. The goal is to find the right balance in order not to jeopardize ongoing activities and projects already underway.

During the 16-week period ended February 2, 2014, we recorded synergies and cost savings we estimated at approximately $13.0 million, before income taxes. These synergies and cost reductions mainly affected operating, selling, administrative and general expenses as well as cost of sales. Since the acquisition, we estimate that total realized annual synergies and cost savings amount to approximately $64.0 million, before income taxes. Management believes these amounts do not necessarily represent the full annual impact of all of our initiatives.

These synergies and cost reductions came from a variety of sources including cost reductions following the delisting of Statoil Fuel & Retail, the renegotiation of certain agreements with our suppliers, the reduction of in-store costs and the restructuring of certain departments.

Our work for the identification and implementation of available synergies and cost reduction opportunities is far from over. Our teams continue to work actively on various projects that seem promising and which, along with the implementation of new systems and marketing initiatives, should allow us to achieve our objectives. We therefore maintain our goal of annual synergies ranging from $150.0 million to $200.0 million before the end ofDecember 2015.

Our synergies and cost reductions estimate is based on a number of important factors and assumptions. Among other things, our synergies and cost savings objective is based on our comparative analysis of organizational structures and current level of spending across our network as well as on our ability to bridge the gap, when relevant. Our synergies and cost reduction objective is also based on our assessment of current contracts inEurope and North America and how we expect to be able to renegotiate these contracts to take advantage of our increased purchasing power. In addition, our synergies and cost reduction objective assumes that we will be able to establish an effective process for sharing best practices across our network. Finally, our objective is also based on our ability to implement effectively and timely a new ERP system. A significant change in these facts and assumptions could significantly impact our synergies and cost reductions estimate.

Impairment

During the third quarter of fiscal 2014, we recorded an impairment charge of $6.8 million for a non-operational lubricant production plant located in Ostroweic, Poland, due to challenging market conditions for this type of asset.

Curtailment gain on pension plans obligation

During the third quarter of fiscal 2014, we recorded a curtailment gain of $0.9 million following the transfer of employees from a defined benefit pension plan to a less favorable defined contribution pension plan.

Network growth

Completed transactions

On November 15, 2013, we acquired 23 company-operated stores operating in New MexicoUnited States from Albuquerque Convenience and Retail LLC. We own the land and buildings for all sites.

On October 24, 2013, we acquired, from Publix Super Markets Inc., 11 company-operated stores, nine of which are located in Florida and the other two in GeorgiaUnited States. We own the land and buildings for eight sites and lease these assets for the other three sites.

In addition, during the third quarter of fiscal 2014, we acquired two additional company-operated stores.

Available cash was used for these acquisitions.

Outstanding transactions

On February 10, 2014, subsequent to the end of the quarter, our Mexican operator, Circulo K, under its licensing agreement, has reached an agreement to acquire 878 stores in Mexico. We do not expect that this transaction will have a significant impact on our consolidated financial statements.

Store construction

We completed the construction of eight new stores during the 16-week period ended February 2, 2014 and of 14 new stores during the 40-week period ended February 2, 2014. As of February 2, 2014, 15 stores were under constructions and should open in the following quarters.

Summary of changes in our stores network during the third quarter and first three quarters of fiscal 2014

The following table presents certain information regarding changes in our stores network over the 16-week period ended February 2, 2014 (1):

 

  16-week period ended February 2, 2014
Type of site Company-
operated (2)
  CODO (3)   DODO (4)   Franchised
and other
affiliated (5)
  Total
Number of sites, beginning of period 6,215   623   537   1,108   8,483
  Acquisitions 36   -   -   -   36
  Openings / constructions / additions 13   2   12   41   68
  Closures / disposals / withdrawals (38)   (3)   (14)   (48)   (103)
  Store conversion 8   (8)   (1)   1   -
Number of sites, end of period 6,234   614   534   1,102   8,484
Number of automated service stations included in the period end figures (6) 912   -   28   -   940

 

The following table presents certain information regarding changes in our stores network over the 40-week period ended February 2, 2014 (1):

 

  40-week period ended February 2, 2014
Type of site Company-
operated (2)
  CODO (3)   DODO (4)   Franchised
and other
affiliated (5)
  Total
Number of sites, beginning of period 6,235   579   478   1,094   8,386
  Acquisitions 48   61   54   -   163
  Openings / constructions / additions 24   4   25   91   144
  Closures / disposals / withdrawals (94)   (8)   (22)   (85)   (209)
  Store conversion 21   (22)   (1)   2   -
Number of sites, end of period 6,234   614   534   1,102   8,484

 

(1) These figures include 50% of the stores operated through RDK, a joint venture.
(2) Sites for which the real estate is controlled by Couche-Tard (through ownership or lease agreements) and for which the stores (and/or the service-stations) are operated by Couche-Tard or one of its commission agent.
(3) Sites for which the real estate is controlled by Couche-Tard (through ownership or lease agreements) and for which the stores (and/or the service-stations) are operated by an independent operator in exchange for rent and to which Couche-Tard supplies road transportation fuel through supply contracts. Some of these sites are subject to a franchise agreement, licensing or other similar agreement under one of our main or secondary banners.
(4) Sites controlled and operated by independent operators to which Couche-Tard supplies road transportation fuel through supply contracts. Some of these sites are subject to a franchise agreement, licensing or other similar agreement under one of our main or secondary banners.
(5) Stores operated by an independent operator through a franchising, licensing or another similar agreement under one of our main or secondary banners.
(6) These sites sell road transportation fuel only.

 

In addition, under licensing agreements, about 4,200 stores are operated under the Circle K banner in ten other countries worldwide (ChinaGuamHondurasHong KongIndonesiaJapanMacauMexicoVietnam andUnited Arab Emirates) which brings to more than 12,600 the number of sites in our network.

Dividends

During its March 18, 2014 meeting, the Board of Directors declared a quarterly dividend of CA10.0¢ per share for the third quarter of fiscal 2014 to shareholders on record as at March 27, 2014 and approved its payment forApril 10, 2014. This is an eligible dividend within the meaning of the Income Tax Act of Canada.

Outstanding shares and stock options

As at March 14, 2014, Couche-Tard had 49,367,280 Class A multiple voting shares and 139,202,990 Class B subordinate voting shares issued and outstanding. In addition, as at the same date, Couche-Tard had 1,206,200 outstanding stock options for the purchase of Class B subordinate voting shares.

On March 11, 2014, the Corporation's Board of Directors approved a three-for-one split of all of the Corporation's issued and outstanding Class "A" and "B" shares. This share split has been approved by regulatory authorities and will become effective on April 14, 2014.

Exchange Rate Data

We use the US dollar as our reporting currency which provides more relevant information given the predominance of our operations in the United States and the significant portion of our debt denominated in US dollars.

The following table sets forth information about exchange rates based upon closing rates expressed as US dollars per comparative currency unit:

               
  16-week periods ended   40-week periods ended
  February 2, 2014   February 3, 2013   February 2, 2014   February 3, 2013
Average for period              
  Canadian Dollar (1) 0.9394   1.0072   0.9566   1.0011
  Norwegian Krone (2) 0.1641   0.1770   0.1667   0.1732
  Swedish Krone (2) 0.1536   0.1514   0.1529   0.1497
  Danish Krone (2) 0.1826   0.1751   0.1793   0.1719
  Zloty (2) 0.3258   0.3170   0.3172   0.3101
  Euro (2) 1.3622   1.3058   1.3371   1.2810
  Lats (3) 1.9384   1.8740   1.9050   1.8393
  Litas (2) 0.3945   0.3782   0.3873   0.3711
  Ruble (2) 0.0303   0.0324   0.0307   0.0318

 

       
  As at February 2, 2014   As at April 28, 2013
Period end      
  Canadian Dollar 0.8978   0.9834
  Norwegian Krone (4) 0.1593   0.1734
  Swedish Krone (4) 0.1528   0.1543
  Danish Krone (4) 0.1810   0.1766
  Zloty (4) 0.3179   0.3163
  Euro (4) 1.3500   1.3170
  Lats (3) -   1.8822
  Litas (4) 0.3907   0.3814
  Ruble (4) 0.0284   0.0322

 

(1) Calculated by taking the average of the closing exchange rates of each day in the applicable period.
(2) Average rate for the period from October 14, 2013 to January 31, 2014 for the 16-week period ended February 2, 2014, from May 1st, 2013 to January 31, 2014 for the 40-week period ended February 2, 2014, from October 1st, 2012 to January 31, 2013 for the 16-week period ended February 3, 2013 and from June 20, 2012 to January 31, 2013 for the 40-week period ended February 3, 2013. Calculated using the average exchange rate at the close of each day for the stated period.
(3) On January 1, 2014, Latvia changed its currency from Lats to Euro. The average rate is for the period from October 14, 2013 to December 31, 2013 for the 16-week period ended February 2, 2014, from May 1st, 2013 to December 31, 2013 for the 40-week period ended February 2, 2014, from October 1st, 2012 to January 31, 2013 for the 16-week period ended February 3, 2013 and from June 20, 2012 to January 31, 2013 for the 40-week period ended February 3, 2013. Calculated using the average exchange rate at the close of each day for the stated period.
(4) As at January 31, 2014.

 

On January 1, 2014Latvia changed its official currency from Lats to Euro. Results from the Latvian operations prior to the conversion date were converted using the Lats exchange rates as described in footnote 3 above while results from the Latvian operations following this date were converted using Euro exchange rates. Balance sheet items from Latvian operations as at February 2, 2014 were converted using the Euro exchange rate. This change in currency did not materially affect our consolidated financial statements.

Considering we use the US dollar as our reporting currency, in our consolidated financial statements and in the present document, unless indicated otherwise, results from our Canadian, European and corporate operations are translated into US dollars using the average rate for the period. Unless otherwise indicated, variances and explanations related to variations in the foreign exchange rate and the volatility of the Canadian dollar and European currencies which we discuss in the present document are therefore related to the translation in US dollars of our Canadian, European and corporate operations results.

 

Summary analysis of consolidated results for the third quarter and first three quarters of fiscal 2014

The following table highlights certain information regarding our operations for the 16 and 40-week periods ended February 2, 2014 and February 3, 2013. The figures for the 16 and 40-week periods endedFebruary 3, 2013 include those of Statoil Fuel & Retail for the period beginning October 1st, 2012 and endingJanuary 31, 2013 and for the period beginning June 20, 2012 and ending January 31, 2013, respectively.

   
  16-week period ended   40-week period ended
(In millions of US dollars, unless otherwise stated) February 2,
2014
  February 3,
2013
  Variation %   February 2,
2014
  February 3,
2013
  Variation %
Statement of Operations Data:                      
Merchandise and service revenues (1):                      
  United States 1,399.0   1,328.0   5.3   3,699.6   3,486.5   6.1
  Europe 305.9   335.4   (8.8)   793.5   619.7   28.0
  Canada 585.9   625.5   (6.3)   1,661.7   1,724.2   (3.6)
  Total merchandise and service revenues 2,290.8   2,288.9   0.1   6,154.8   5,830.4   5.6
Road transportation fuel revenues:                      
  United States 4,475.5   4,326.6   3.4   11,743.9   11,257.8   4.3
  Europe 2,625.8   2,933.9   (10.5)   6,739.6   5,474.4   23.1
  Canada 858.1   849.8   1.0   2,270.4   2,230.0   1.8
  Total road transportation fuel revenues 7,959.4   8,110.3   (1.9)   20,753.9   18,962.2   9.4
Other revenues (2):                      
  United States 5.1   2.0   155.0   11.0   5.0   120.0
  Europe 837.8   1,065.7   (21.4)   2,084.2   1,969.4   5.8
  Canada 0.1   0.2   (50.0)   0.4   0.4   0.0
  Total other revenues 843.0   1,067.9   (21.1)   2,095.6   1,974.8   6.1
Total revenues 11,093.2   11,467.1   (3.3)   29,004.3   26,767.4   8.4
Merchandise and service gross profit (1):                      
  United States 457.0   440.5   3.7   1,204.8   1,159.0   4.0
  Europe 132.3   140.4   (5.8)   328.7   251.9   30.5
  Canada 191.4   208.4   (8.2)   553.0   581.7   (4.9)
  Total merchandise and service gross profit 780.7   789.3   (1.1)   2,086.5   1,992.6   4.7
Road transportation fuel gross profit:                      
  United States 226.5   227.6   (0.5)   636.7   593.7   7.2
  Europe 278.9   273.9   1.8   717.4   522.9   37.2
  Canada 48.5   50.1   (3.2)   129.9   126.9   2.4
  Total road transportation fuel gross profit 553.9   551.6   0.4   1,484.0   1,243.5   19.3
Other revenues gross profit (2):                      
  United States 5.1   2.0   155.0   11.0   5.0   120.0
  Europe 110.8   132.4   (16.3)   291.3   247.8   17.6
  Canada 0.1   0.2   (50.0)   0.4   0.4   0.0
  Total other revenues gross profit 116.0   134.6   (13.8)   302.7   253.2   19.5
Total gross profit 1,450.6   1,475.5   (1.7)   3,873.2   3,489.3   11.0
Operating, selling, administrative and general expenses 1,037.6   1,084.4   (4.3)   2,601.1   2,423.8   7.3
Negative goodwill (6.6)   (0.4)   1,550.0   (48.2)   (1.6)   2,912.5
Curtailment gain on defined benefits pension plans obligation (0.9)   -   -   (0.9)   -   -
Depreciation, amortization and impairment of property and equipment and other assets 186.0   182.6   1.9   441.2   383.0   15.2
Operating income 234.5   208.9   8.9   880.0   684.1   28.5
Net earnings 182.3   142.2   28.2   667.1   426.4   56.4
Other Operating Data:                      
Merchandise and service gross margin (1):                      
  Consolidated 34.1%   34.5%   (0.4)   33.9%   34.2%   (0.3)
  United States 32.7%   33.2%   (0.5)   32.6%   33.2%   (0.6)
  Europe 43.2%   41.9%   1.3   41.4%   40.6%   0.8
  Canada 32.7%   33.3%   (0.6)   33.3%   33.7%   (0.4)
Growth of same-store merchandise revenues (3) (4):                      
  United States 3.8%   0.8%       3.7%   1.3%    
  Europe 0.9%   -       1.3%   -    
  Canada 2.2%   1.7%       2.0%   2.3%    
Road transportation fuel gross margin :                      
  United States (cents per gallon)(4) 17.02   17.80   (4.4)   19.12   18.61   2.7
  Europe (cents per litre) (5) 11.44   9.74   17.5   11.07   9.89   11.9
  Canada (CA cents per litre) (4) 5.87   5.88   (0.2)   6.01   5.79   3.8
Volume of road transportation fuel sold (5):                      
  United States (millions of gallons) 1,403.1   1,306.7   7.4   3,519.3   3,265.8   7.8
  Europe (millions of litres) 2,437.8   2,812.5   (13.3)   6,482.6   5,285.4   22.7
  Canada (millions of litres) 888.0   852.7   4.1   2,282.7   2,200.4   3.7
Growth of (decrease in) same-store road transportation fuel volume (4):                      
  United States 1.3%   0.8%       1.4%   0.5%    
  Europe 2.7%   -       2.2%   -    
  Canada 2.1%   (0.9%)       1.2%   0.4%    
Per Share Data:                      
  Basic net earnings per share (dollars per share) 0.97   0.76   27.6   3.54   2.31   53.2
  Diluted net earnings per share (dollars per share) 0.96   0.75   28.0   3.52   2.29   53.7
                       
              February 2,
2014
  April 28,
2013
  Variation $
Balance Sheet Data:                      
  Total assets             10,367.2   10,546.2   (179.0)
  Interest-bearing debt             2,779.5   3,605.1   (825.6)
  Shareholders' equity             3,725.7   3,216.7   509.0
Indebtedness Ratios:                      
  Net interest-bearing debt/total capitalization (6)             0.37 : 1   0.48 : 1    
  Net interest-bearing debt/Adjusted EBITDA (7)             1.39 : 1   1.98 : 1 (8)    
  Adjusted net interest bearing debt/Adjusted EBITDAR (9)             2.51 : 1   3.05 : 1 (8)    
Returns:                      
  Return on equity (10)             23.4%   21.5% (8)    
  Return on capital employed (11)             13.3%   11.0% (8)    

 

(1) Includes revenues derived from franchise fees, royalties, suppliers rebates on some purchases made by franchisees and licensees as well as merchandise wholesale.
(2) Includes revenues from rental of assets, from sale of aviation and marine fuel, heating oil, kerosene, lubricants and chemicals. Revenues for the 16 and 40-week periods ended February 3, 2013 include revenues from the Liquefied Petroleum Gas ("LPG")'s operations. Those operations were sold in December 2012.
(3) Does not include services and other revenues (as described in footnote 1 above). Growth in Canada is calculated based on Canadian dollars. Growth in Europe is calculated based on Norwegian Krones.
(4) For company-operated stores only.
(5) Total road transportation fuel.
(6) This ratio is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: long-term interest-bearing debt, net of cash and cash equivalents and temporary investments divided by the addition of shareholders' equity and long-term debt, net of cash and cash equivalents and temporary investments. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations.
(7) This ratio is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: long-term interest-bearing debt, net of cash and cash equivalents and temporary investments divided by EBITDA (Earnings Before Interest, Tax, Depreciation, Amortization and Impairment) adjusted for restructuring expenses, curtailment gain on certain defined benefits pension plans obligation and negative goodwill. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations.
(8) This ratio is presented on a pro forma basis. It includes Couche-Tard's results for fiscal year ended April 28, 2013 as well as Statoil Fuel & Retail's results for the 12-month period ended April 30, 2013. Statoil Fuel & Retail balance sheet and earnings have been adjusted to make their presentation in line with Couche-Tard's policies and for fair value adjustments to assets acquired, including goodwill, and to liabilities assumed.
(9) This ratio is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: long-term interest-bearing debt plus the product of eight times rent expense, net of cash and cash equivalents and temporary investments divided by EBITDAR (Earnings Before Interest, Tax, Depreciation, Amortization, Impairment and Rent expense) adjusted for restructuring costs, curtailment gain on certain defined benefits pension plans obligation as well as negative goodwill. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations.
(10) This ratio is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: net earnings divided by average equity for the corresponding period. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations.
(11) This ratio is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: earnings before income taxes and interests divided by average capital employed for the corresponding period. Capital employed represents total assets less short-term liabilities not bearing interests. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations.

 

Revenues

Our revenues were $11.1 billion in the third quarter of fiscal 2014, down $373.9 million, a decrease of 3.3%, mainly attributable to the divesture of our European Liquefied Petroleum Gas ("LPG") business in December 2012, to the negative net impact from the translation of revenues from our Canadian and European operations into US dollars, to lower average road transportation fuel retail prices in the United States as well as to the fact that the third quarter of fiscal 2014 only includes 110 days of Statoil Fuel & Retail results compared with 123 days for the third quarter of fiscal 2013. These items contributing to the reduction in revenues were partly offset by the contribution from acquisitions as well as by the nice growth in same-store merchandise revenues and road transportation fuel volume in both North America and Europe.

For the first three quarters of fiscal 2014, our revenues grew by $2.2 billion, an increase of 8.4% compared to the first three quarters of fiscal 2013 mainly attributable to the contribution from acquisitions as well as to the increase in same-store merchandise revenues and road transportation fuel volume in both North America andEurope. These items that contributed to the increase in revenues were partially offset by the impact of the divesture of our Liquefied Petroleum Gas ("LPG") business in December 2012, by lower average road transportation fuel retail prices in the United States as well as by the negative net impact from the translation of revenues from our Canadian and European operations into the United States dollar.

More specifically, the growth of merchandise and service revenues for the third quarter of fiscal 2014 was$1.9 million or 0.1%. Excluding the negative impact from the translation of our European and Canadian operations into US dollars, which was approximately $36.0 million, consolidated merchandise and service sales increased by $37.9 million. Growth, in dollar, of the consolidated merchandise and service sales was partially offset by the fact that the results of Statoil Fuel & Retail include 110 days for the third quarter of fiscal 2014 compared to 123 days for the comparable quarter of fiscal 2013.This increase is attributable to the contribution from acquisitions which amounted to approximately $22.0 million as well as to organic growth. Same-store merchandise revenues increased by 3.8% in the United States and 2.2% in Canada, which is really noteworthy considering the unfavorable weather which affected many of our markets in North America. This strong increase in same-store merchandise sales is attributable to our merchandising strategies, to the economic conditions in each of these two markets as well as to the investments we made to enhance service and the offering of products in our stores. In both countries, we continued to favour pricing strategies aimed at boosting in-store traffic which helped us gain momentum in terms of transactions count while the fresh food category continued to post a nice growth in several of our markets. In Europe, the exchange of best practices, the implementation of new and sustainable merchandising strategies as well as the investments made through extensive marketing campaigns to promote in-store offering allowed us to turn around the negative sales trend that existed when we acquired Statoil Fuel & Retail. Consequently, for a fourth consecutive quarter, same-store merchandise revenues in Europe posted a growth. This growth, which was 0.9% for the third quarter, was driven by strong food services and coffee sales. Items that contributed to the increase in revenues were partly offset by the negative net impact from the translation of revenues from our Canadian and European operations into the United States dollar, which amounted to approximately $36.0 million as well as the fact that the third quarter of fiscal 2014 only includes 110 days of Statoil Fuel & Retail results compared with 123 days for the third quarter of fiscal 2013.

In the first three quarters of fiscal 2014, merchandise and service revenues rose by $324.4 million, a 5.6% increase compared to the same period the previous fiscal year, mainly because of the contribution from acquisitions and the increase in same-store merchandise revenues of 3.7% in the United States, of 1.3% inEurope and of 2.0% in Canada. Items which contributed to the increase in revenues were partly offset by the negative net impact from the translation of revenues from our Canadian and European operations into US dollars, which amounted to approximately $61.0 million.

Road transportation fuel revenues decreased by $150.9 million or 1.9% in the third quarter of fiscal 2014. This decrease was mainly attributable to the divesture and closure of stores as part of our continuous work to improve the quality of our network, to the negative net impact from the translation of revenues from our Canadian and European operations into US dollars which amounted to approximately $58.0 million as well as to the fact that the third quarter of fiscal 2014 only includes 110 days of Statoil Fuel & Retail results compared with 123 days for the third quarter of fiscal 2013. Overall, the variations in road transportation fuel prices had a negative impact on revenues of approximately $16.0 million. The impact of the lower average retail price of road transportation fuel in the United States was partly offset by the impact of the higher average price in Europe and in Canada as shown in the following table, starting with the fourth quarter of the fiscal year ended April 29, 2012:

 

Quarter   4th   1st   2nd   3rd   Weighted
average
52-week period ended February 2, 2014                    
  United States (US dollars per gallon)   3.61   3.51   3.45   3.24   3.44
  Europe (US cents per litre)   103.80   100.72   103.25   107.49   104.47
  Canada (CA cents per litre)   115.65   114.53   117.05   113.11   114.94
53-week period ended February 3, 2013                    
  United States (US dollars per gallon)   3.73   3.49   3.65   3.35   3.54
  Europe (US cents per litre)   -   -   103.96   104.70   104.38
  Canada (CA cents per litre)   117.0   112.62   117.41   110.43   114.02

 

Items that contributed to the reduction in revenues were partly offset by the $204.6 million contribution from acquisitions and by organic growth. In the United States and in Canada, same-store road transportation fuel volume increased by 1.3% and by 2.1%, respectively while in Europe, same-store road transportation fuel volume increased by 2.7% which is also a strong improvement over the trend our European network was posting before we acquired Statoil Fuel & Retail and is demonstrated by our increasing market shares in Scandinavia. Our new fuel brand "milesTM" we launched in some of our European markets is delivering encouraging results and is again a nice contributor to third quarter performance. This is also the fourth quarter in a row that same-store road transportation fuel volume is showing positive results.

For the first three quarters of fiscal 2014, road transportation fuel revenues increased by $1.8 billion or 9.4%. Acquisitions contributed to an increase in revenues of approximately $2.4 billion while same-store road transportation fuel volume increased by 1.4% in the United States, by 2.2% in Europe and by 1.2% in Canada. Items which contributed to the growth were partially offset by the lower average retail price of road transportation fuel which generated a net decrease in revenues of approximately $228.0 million and by the negative net impact from the translation of revenues from our Canadian and European operations into US dollars, which amounted to approximately $20.0 million.

Other revenues decreased by $224.9 million in the third quarter of fiscal 2014, mostly attributable to the divesture of our European LPG business in December 2012, to the decrease in aviation fuel revenues as well as to the fact that the third quarter of fiscal 2014 only includes 110 days of Statoil Fuel & Retail results compared with 123 days for the third quarter of fiscal 2013. For the first three quarters of fiscal 2014, other revenues showed an increase of $120.8 million, mainly attributable to the contribution from acquisitions, partially offset by lower LPG and aviation fuel revenues.

Gross profit

In the third quarter of fiscal 2014, the consolidated merchandise and service gross margin was $780.7 million, a contraction of $8.6 million or 1.1% compared with the corresponding quarter of fiscal 2013. Excluding the negative impact from the translation of our European and Canadian operations into US dollars, which was approximately $10.0 million, consolidated merchandise and service gross margin increased by $1.4 million. Growth, in dollar, of the consolidated merchandise and service gross margin was partially offset by the fact that the results of Statoil Fuel & Retail include 110 days for the third quarter of fiscal 2014 compared to 123 days for the comparable quarter of fiscal 2013.In the United States, the gross margin was down 0.5% from 32.7% to 33.2% and by 0.6% in Canada, to 32.7% while it increased by 1.3% in Europe to 43.2%. Overall, this performance reflects changes in the product-mix, the modifications we brought to our supply terms as well as our merchandising strategy in line with market competitiveness and economic conditions within each market. Similar to the prior quarters, in North America, the decrease in the margin as a percentage of sales mainly reflects the impact of our pricing strategies aimed at increasing store traffic which had a favourable impact on revenues but brought the margin percentage down. However, on a net basis, this strategy had an overall positive impact since the merchandise and service gross profit increased. In Europe, the increase in the margin as a percentage of sales is the result of a cumulative reclassification between revenues and cost of sales for the first and second quarter of fiscal 2014. Excluding this reclassification, the margin in Europe would have been 42.0%, which is comparable to the margin recorded in the third quarter of fiscal 2013. The higher merchandise and service gross margin as a percentage of sales in Europe reflects price and cost structures as well as a revenue mix that are different from those in North America.

During the first three quarters of fiscal 2014, the consolidated merchandise and service gross margin increased by $93.9 million or 4.7%. The gross margin was 32.5% in the United States, a decrease of 0.6%, it was 33.3% inCanada, down 0.4% while in Europe, it was 41.4 %, an increase of 0.8%.

In the third quarter of fiscal 2014, the road transportation fuel gross margin for our company-operated stores inthe United States decreased by 0.78 ¢ per gallon, from 17.80 ¢ per gallon last year to 17.02 ¢ per gallon this year. In Canada, the gross margin is almost flat to CA5.87¢ per litre compared with CA5.88 ¢ per litre for the third quarter of fiscal 2013. In Europe, the total road transportation fuel gross margin was 11.44 ¢ per litre for the third quarter of fiscal 2014, an important increase of 1.70 ¢ per litre compared with 9.74 ¢ per litre for the third quarter of fiscal 2013. The road transportation fuel gross margin of our company-operated stores in the United States as well as the impact of expenses related to electronic payment modes for the last eight quarters, starting with the fourth quarter of fiscal year ended April 29, 2012, were as follows:

 

(US cents per gallon)                    
Quarter   4th   1st   2nd   3rd   Weighted
average
52-week period ended February 2, 2014                    
  Before deduction of expenses related to electronic payment modes   19.30   19.42   21.56   17.02   19.17
  Expenses related to electronic payment modes   5.03   4.99   5.04   4.79   4.95
  After deduction of expenses related to electronic payment modes   14.27   14.43   16.52   12.23   14.22
53-week period ended February 3, 2013                    
  Before deduction of expenses related to electronic payment modes   16.98   23.20   15.20   17.80   18.22
  Expenses related to electronic payment modes   5.06   4.97   5.15   4.79   4.98
  After deduction of expenses related to electronic payment modes   11.92   18.23   10.05   13.01   13.24

 

For the first three quarters of fiscal 2014, the road transportation fuel gross margin for our company-operated stores in the United States increased by 0.51¢ per gallon, from 18.61¢ per gallon last fiscal year to 19.12¢ per gallon this fiscal year. In Canada, the margin increased, reaching CA6.01¢ per litre compared with CA5.79¢ per litre for the comparable period of fiscal 2013. The total road transportation fuel margin in Europe stood at 11.07¢ per litre, an increase of 1.17¢ per litre.

Operating, selling, administrative and general expenses

For the third quarter and first three quarters of fiscal 2014, operating, selling, administrative and general expenses decreased by 4.3% and increased by 7.3%, respectively, compared with the third quarter and first three quarters of fiscal 2013, but decreased by 3.4% and 0.3%, respectively, if we exclude certain items, as demonstrated by the following table:

 

  16-week period ended
February 2, 2014
  40-week period ended
February 2, 2014
Total variance as reported (4.3%)   7.3%
Subtract:      
  Increase from incremental expenses related to acquisitions 0.8%   8.5%
  Decrease from divesture of LPG business (0.2%)   (0.1%)
  Increase from higher electronic payment fees, excluding acquisitions 0.3%   0.3%
  Decrease from the net impact of foreign exchange translation (1.8%)   (1.0%)
  Acquisition costs recognized to earnings of fiscal 2014 0.1%   0.1%
  Acquisition costs recognized to earnings of fiscal 2013 (0.1%)   (0.2%)
Remaining variance (3.4%)   (0.3%)

 

The remaining variance for the third quarter of fiscal 2014 is mainly due to the lower number of days from our European operations, partly offset by higher expenses to support our organic growth. For the first three quarters of fiscal 2014, the variance in our operating expenses comes from sound management of our expenses across our operations as well as from the impact of synergies. We continue to favour a tight control of our costs throughout the organization while making sure to maintain the quality of the service we offer our clients.

In Europe, expense level is still affected by the implementation of a new IT infrastructure and the rollout of an ERP system. Our IT costs should continue to go down progressively over the course of the next quarters.

Earnings before interests, taxes, depreciation, amortization and impairment (EBITDA) and adjusted EBITDA

During the third quarter of fiscal 2014, EBITDA increased by 7.5% compared to the corresponding period of the previous fiscal year, reaching $425.1 million. Net of acquisition costs recorded to earnings, acquisitions contributed approximately $9.0 million to EBITDA, while the variation in exchange rates had a negative impact of approximately $5.0 million. As for the first three quarters of fiscal 2014, EBITDA increased by 24.1% compared to the corresponding period of the previous fiscal year, reaching $1,340.0 million. Net of acquisition costs recorded to earnings, acquisitions contributed approximately $147.0 million to EBITDA of the first three quarters of fiscal 2014 while the variation in exchange rates had an unfavorable impact of approximately $6.9 million.

Excluding the curtailment gain on pension plans obligation of the third quarter of fiscal 2014 as well as the negative goodwill of both comparable periods, the third quarter of fiscal 2014 adjusted EBITDA increased by$22.4 million or 5.7% compared to the corresponding period of the previous fiscal year, reaching $417.6 million. For the first three quarters of fiscal 2014, excluding the curtailment gain on pension plans obligation as well as the negative goodwill for both comparable periods, adjusted EBITDA increased by $212.6 million or 19.7% compared to the corresponding period of the previous fiscal year, reaching $1,290.9 million. Growth of adjusted EBITDA was partially offset by the fact that the results of Statoil Fuel & Retail include 110 days for the third quarter of fiscal 2014 compared to 123 days for the comparable quarter of fiscal 2013.

It should be noted that EBITDA and adjusted EBITDA are not performance measures defined by IFRS, but we, as well as investors and analysts, use these measures to evaluate the Corporation's financial and operating performance. Note that our definition of these measures may differ from the one used by other public corporations:

 

  16-week period ended   40-week period ended
(in millions of US dollars) February 2, 2014   February 3, 2013   February 2, 2014   February 3, 2013
Net earnings, as reported 182.3   142.2   667.1   426.4
Add:              
  Income taxes 35.0   21.3   148.0   83.5
  Net financial expenses 21.8   49.4   83.7   187.1
  Depreciation and amortization and impairment of property and equipment and other assets 186.0   182.6   441.2   383.0
EBITDA 425.1   395.5   1,340.0   1,080.0
Remove:              
  Negative goodwill (6.6)   (0.2)   (48.2)   (1.6)
  Curtailment gain on pension plan obligation (0.9)   -   (0.9)   -
Adjusted EBITDA 417.6   395.3   1,290.9   1,078.4

 

Depreciation, amortization and impairment of property and equipment and other assets

For the third quarter of fiscal 2014 and the first three quarter of fiscal 2014, depreciation, amortization and impairment expense increased due to an impairment charge of $6.8 million on a non-operational lubricant production plant as well as to investments made through acquisitions, replacement of equipment, addition of new stores and ongoing improvement of our network. For the third quarter of fiscal 2014, items contributing to this increase were partly offset by the fact that the third quarter of fiscal 2014 only includes 110 days of Statoil Fuel & Retail results compared with 123 days for the third quarter of fiscal 2013.

During the third quarter of fiscal 2014, we have completed the analysis of the remaining useful lives of Statoil Fuel & Retail property and equipment in order to modify the depreciation periods accordingly. Based on our analysis, we concluded that the modification of depreciation periods would reduce the depreciation expense but the final results are not significantly different from the preliminary estimates reflected in the depreciation expense of the previous quarters.

Net financial expenses

The third quarter of fiscal 2014 shows net financial expenses of $21.8 million, a decrease of $27.6 millioncompared to the third quarter of fiscal 2013. Excluding the net foreign exchange gain of $10.4 million and the net foreign exchange loss of $13.6 million recorded respectively in the third quarter of fiscal 2014 and in the third quarter of fiscal 2013, the decrease in net financial expenses is $3.6 million. The decrease is mainly attributable to the reduction in our long-term debt following repayments we made on our revolving and acquisition facilities partly offset by the higher effective interest rates of our senior unsecured notes compared with the effective rate of our acquisition facility. With respect to the net foreign exchange gain of $10.4 million, it is mainly due to the impact of the exchange rate fluctuations on certain inter-company balances and external long term debt as well as to the impact of exchange rates fluctuations on US dollars denominated sales made by our European operations.

For the first three quarters of fiscal 2014, we recorded net financial expenses of $83.7 million compared to$187.1 million for the comparable period of fiscal 2013. Excluding the net foreign exchange loss of $1.4 millionand of $3.6 million recorded respectively in the first three quarters of fiscal 2014 and in the first three quarters of fiscal 2013 as well as the $102.9 million non-recurring loss on foreign exchange forward contracts recorded in the first three quarters of fiscal 2013, the first three quarters of fiscal 2014 posted net financial expenses of$82.3 million, up $1.7 million compared to the first three quarters of fiscal 2013. The increase is mainly due to the fact that the first three quarters of fiscal 2013 did not include the full impact of the financing costs related to the acquisition of Statoil Fuel & Retails since this acquisition closed on in the later part of June 2012.

Income taxes

The income tax rate for the third quarter of fiscal 2014 was 16.1%, compared to 13.0% for the corresponding quarter of the previous fiscal year. For the first three quarters of fiscal 2014, the rate is 18.2% compared to a rate of 16.4% for the first three quarters of the previous fiscal year. The income tax rate for the first three quarters of fiscal 2014 was higher than expected because of overall higher taxable income in the United Stateswhere we have our highest statutory tax rate. Excluding the net impact from the negative goodwill recorded in the first quarter of fiscal 2014, the income tax rate would have been approximately 17.1% for the first three quarters of fiscal 2014.

Net earnings

We closed the third quarter of fiscal 2014 with net earnings of $182.3 million, compared to $142.2 million for the third quarter of the previous fiscal year, an increase of $40.1 million or 28.2%. Diluted net earnings per share stood at $0.96 compared to $0.75 the previous year, an increase of 28.0%. The translation of revenues from our Canadian and European operations into the US dollars had a negative impact of approximately $9.5 millionon net earnings of the third quarter of fiscal 2014.

Excluding from the third quarter of fiscal 2014 earnings the $6.8 million impairment charge on a non-operational lubricant plant in Poland, the curtailment gain on pension plans obligation, the net foreign exchange gain, the negative goodwill as well as acquisition costs and excluding from the third quarter of fiscal 2013 earnings the net foreign exchange loss, acquisition costs as well as the negative goodwill, the third quarter of fiscal 2014 net earnings would have been approximately $175.0 million ($0.92 per share on a diluted basis) compared to$153.0 million ($0.81 per share on a diluted basis) for the corresponding period of fiscal 2013, an increase of$22.0 million, or 14.4%. Growth of adjusted net earnings was partially offset by the fact that the results of Statoil Fuel & Retail include 110 days for the third quarter of fiscal 2014 compared to 123 days for the comparable quarter of fiscal 2013.

For the first three quarters of fiscal 2014, net earnings were $667.1 million, compared to $426.4 million the previous fiscal year, an increase of $240.7 million or 56.4%. Diluted net earnings per share stood at $3.52compared to $2.29 the previous year, an increase of 53.7%.

Excluding from net earnings of the first three quarters of fiscal 2014 the $6.8 million impairment charge on a non-operational lubricant plant in Poland, the curtailment gain on pension plans obligation, the negative goodwill, the net foreign exchange loss as well as acquisition costs and excluding from net earnings of the first three quarters of fiscal 2013 the non-recurring loss on forwards, the net foreign exchange loss, the negative goodwill as well as acquisition costs, net earnings would have stood at approximately $643.0 million, up$137.0 million or 27.1%, while diluted earnings per share would have stood at approximately $3.40, an increase of 25.0%.

Original source: Couche-Tard