• Same store sales up in all core retail banners:
  • 4.7% at Canadian Tire
  • 8.6% at FGL Sports
  • 5.5% at Mark's
• Financial Services posts record first quarter income before taxes
• Diluted EPS flat to last year, despite owning 20% less of Financial Services business

TORONTO, May 14, 2015 /CNW/ - Canadian Tire Corporation, Limited (TSX:CTC, TSX:CTC.A) today released first quarter results for the period ended April 4, 2015.

"We had a great start to the year with strong sales across the retail businesses and impressive results at Financial Services. We once again owned the seasonal business and customers responded well to our assortments, helping drive the Canadian Tire banner to its best comparable store sales result in a decade," said Michael Medline, President and CEO, Canadian Tire Corporation. "The first quarter is always our smallest, but I am pleased to see continued momentum from all of our businesses."

CONSOLIDATED OVERVIEW

• Excluding Petroleum, consolidated revenue increased $46.1 million, or 2.2%. As a result of lower gas prices, consolidated revenue declined 2.3% or $58.2 million versus the prior year.
• Gross average credit card receivables grew 6.8% over the same period last year.
• Diluted EPS was $0.88 in the quarter, flat to the first quarter of last year.

RETAIL OVERVIEW

• Retail segment revenue decreased 3.7% in the quarter, primarily due to the decline in gas prices. Excluding Petroleum, Retail segment revenue increased 1% over the same period last year.
• Income before income taxes in the Retail segment was $19.7 million, up 18.6% over the first quarter last year.
• Canadian Tire Retail saw retail sales increase 4.5% and same store sales up 4.7% over the same period last year.
• FGL Sports' retail sales and same store sales were both up 8.6% over the same period last year. Same store sales at Sport Chek were up 8.7% in the first quarter.
• Mark's retail sales grew 4.4% and same store sales increased 5.5%.

CT REIT OVERVIEW

• As disclosed in the Q1 2015 CT REIT release issued May 12, 2015, CT REIT completed five acquisitions, one development land acquisition and three intensifications at a total cost of $75.7 million in the quarter.
• CT REIT also announced that it intends to make a further 11 investments in acquisitions or property intensifications over the year, all of which are properties with existing Canadian Tire stores and will require an estimated investment of $73.5 million.

FINANCIAL SERVICES OVERVIEW

• Financial Services posted first quarter gross average credit card receivables growth of 6.8%.
• Income before income taxes rose 22.6% to $100.9 million.

CAPITAL EXPENDITURES

• Operating capital expenditures were $76.3 million in the first quarter, up 11.9% over the prior year, consistent with the Company's previously disclosed plans for real estate investments and ongoing technology initiatives.
• Operating capital spending for 2015 is on track to be within the range of $600 million to $625 million, excluding investments required for additional distribution capacity, costs to fund CT REIT's growth strategy and costs incurred relating to the recently announced agreement to acquire 12 strategic real estate leases, formerly held by Target Canada which is subject to court approval.
• If required, the Company will update its capital expenditure guidance as part of its second quarter disclosure documents.

QUARTERLY DIVIDEND

• The Company has declared dividends payable to holders of Class A Non-Voting Shares and Common Shares at a rate of $0.525 per share payable on September 1, 2015 to shareholders of record as of July 31, 2015. The dividend is considered an "eligible dividend" for tax purposes.

SHARE REPURCHASE

• On October 9, 2014, CTC announced that it intended to repurchase $400 million of its Class A Non-Voting Shares in excess of the amount required for anti-dilutive purposes through to the end of 2015. As at April 4, 2015 CTC had repurchased $138.3 million towards this commitment, leaving $261.7 million remaining to be repurchased in fiscal 2015.

NORMAL COURSE ISSUER BID UPDATE

• On February 26, 2015, the Toronto Stock Exchange accepted the Company's notice of intention to make a Normal Course Issuer Bid (NCIB) to purchase up to 4.0 million Class A Non-Voting Shares between March 2, 2015 and March 1, 2016 (the "2015 NCIB").
• As at April 4, 2015, the Company had purchased 435,700 Class A Non-Voting Shares at a cost of $56.5 million under the 2015 NCIB, including the amount required for anti-dilutive purposes.

For additional information, refer to the Company's Q1 2015 Management's Discussion and Analysis.

To view a PDF version of Canadian Tire Corporation's full quarterly earnings report please see: http://files.newswire.ca/116/CanadianTireQ1Eng.pdf

FORWARD-LOOKING STATEMENTS

This document contains forward-looking information that reflects management's current expectations related to matters such as future financial performance and operating results of the Company. Forward-looking statements are provided for the purposes of providing information about management's current expectations and plans and allowing investors and others to get a better understanding of our anticipated financial position, results of operations and operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

All statements other than statements of historical facts included in this document may constitute forward-looking information, including but not limited to, statements concerning the Company's operating capital spending for 2015 under the heading "Capital Expenditures", the Company's intention to acquire Class A Non-Voting Shares under its 2015 normal course issuer bid under the headings "Share Repurchase" and "Normal Course Issuer Bid Update" and other statements concerning management's expectations relating to possible or assumed future prospects and results, our strategic goals and priorities, our actions and the results of those actions and the economic and business outlook for us. Forward-looking information is based on the reasonable assumptions, estimates, analyses, beliefs and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable at the date that such information is provided.

By its very nature, forward-looking information requires us to make assumptions and is subject to inherent risks and uncertainties, which give rise to the possibility that the Company's assumptions, estimates, analyses, beliefs and opinions may not be correct and that the Company's expectations and plans will not be achieved. Although the Company believes that the forward-looking information in this document is based on information, assumptions and beliefs which are current, reasonable and complete, this information is necessarily subject to a number of factors, risks and uncertainties that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking information.

For more information on the risks, uncertainties and assumptions that could cause the Company's actual results to differ from current expectations, refer to section 2.10 (Risk Factors) of our Annual Information Form for fiscal 2014 and to sections 6.4.1.3 (Retail segment business risks), 6.4.2.3 (CT REIT segment business risks), 6.4.3.3 (Financial Services segment business risks) and 10.0 (Enterprise Risk Management) and all subsections thereunder of our 2014 Management's Discussion and Analysis, as well as the Company's other public filings, available at www.sedar.com and at www.corp.canadiantire.ca.

Statements that include forward-looking information do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made have on the Company's business. For example, they do not include the effect of any dispositions, acquisitions, asset write-downs or other charges announced or occurring after such statements are made.

The forward-looking statements and information contained herein are based on certain factors and assumptions as of the date hereof. The Company does not undertake to update any forward-looking information, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, except as is required by applicable securities laws.

CONFERENCE CALL

Canadian Tire will conduct a conference call to discuss information included in this news release and related matters at 1:30 p.m. ET on May 14, 2015. The conference call will be available simultaneously and in its entirety to all interested investors and the news media through a webcast at http://corp.canadiantire.ca/EN/investors, and will be available through replay at this website for 12 months.

About Canadian Tire Corporation

Canadian Tire Corporation, Limited, (TSX:CTC.A) (TSX:CTC) or "CTC," is a family of businesses that includes a retail segment, a financial services division and CT REIT. Our retail business is led by Canadian Tire, which was founded in 1922 and provides Canadians with products for life in Canada across its Living, Playing, Fixing, Automotive and Seasonal categories. PartSource and Gas+ are key parts of the Canadian Tire network. The retail segment also includes Mark's, a leading source for casual and industrial wear, and FGL Sports (Sport Chek, Hockey Experts, Sports Experts, National Sports, Intersport, Pro Hockey Life and Atmosphere), which offers the best active wear brands. The nearly 1,700 retail and gasoline outlets are supported and strengthened by our Financial Services division and the tens of thousands of people employed across the Company. For more information, visit Corp.CanadianTire.ca.

SOURCE CANADIAN TIRE CORPORATION, LIMITED

PDF available at: http://stream1.newswire.ca/media/2015/05/14/20150514_C7046_PDF_EN_16623.pdf