The North West Company Inc. Announces Fourth Quarter Earnings and a Quarterly Dividend
Press Release
Winnipeg, Manitoba, April 10, 2024 (TSX: NWC): The North West Company Inc. (the “Company” or “North West”) today announced its unaudited financial results for the fourth quarter ended January 31, 2024 and released its 2023 Annual Report and Annual Information Form. The Annual Report includes the Company’s Annual Audited Consolidated Financial Statements and Management’s Discussion and Analysis for the year ended January 31, 2024. These documents are available on the Company’s profile on the SEDAR+ website at www.sedarplus.com and on the Company’s website at www.northwest.ca. It also announced that the Board of Directors has declared a dividend of $0.39 per share to be paid on April 29, 2024 to shareholders of record on April 18, 2024.
CEO Comments on Fourth Quarter Results and Annual Results
“The results in the quarter reflect continued momentum in our Canadian Operations” said President & CEO Dan McConnell. “Overall, I am pleased with the results for the year considering the impact of lower income support payments for customers in our International Operations and the wildfires in Canada and I am encouraged by the progress we are making from our focus on operational excellence.”
Fourth Quarter and Annual Results
The following table provides a summary of selected information for the 2023 fourth quarter and annual results. Further information on the fourth quarter and annual financial performance is provided in the 2023 Annual Report available on the Company’s website at www.northwest.ca or on SEDAR+ at www.sedarplus.com.
Selected Fourth Quarter(3) and Annual Information
| Three Months | Three Months | Twelve Months | Twelve Months | |||||
| Ended | Ended | Ended | Ended | |||||
| ($ in thousands, except per share) | January 31, 2024 | January 31, 2023 | January 31, 2024 | January 31, 2023 | ||||
| Sales | $ | 643,109 | $ | 635,164 | $ | 2,471,678 | $ | 2,352,760 |
| Same store sales % increase/(decrease)(2) | 1.4 % | 2.1 % | 2.9 % | (0.8)% | ||||
| Gross profit | $ | 214,692 | $ | 201,177 | $ | 809,419 | $ | 747,915 |
| Selling, operating and administrative expenses | (162,995) | (153,353) | (613,522) | (567,610) | ||||
| EBITDA(1) | 79,136 | 73,460 | 301,173 | 278,678 | ||||
| Earnings from operations | 51,697 | 47,824 | 195,897 | 180,305 | ||||
| Interest expense | (4,894) | (4,192) | (19,051) | (14,836) | ||||
| Income taxes | (10,792) | (8,503) | (42,555) | (39,633) | ||||
| Net earnings | 36,011 | 35,129 | 134,291 | 125,836 | ||||
| Net earnings attributable to shareholders of the Company | 34,492 | 33,930 | 129,391 | 122,190 | ||||
| Net earnings per share – basic | 0.72 | 0.71 | 2.71 | 2.55 | ||||
| Net earnings per share – diluted | 0.71 | 0.69 | 2.67 | 2.51 | ||||
| Cash flow from operating activities | 90,481 | 100,230 | 230,427 | 182,838 | ||||
| Cash flow used in investing activities | (41,606) | (51,907) | (107,701) | (106,802) | ||||
| Cash flow used in financing activities | (66,916) | (38,500) | (128,270) | (68,298) | ||||
| Cash dividends per share | $ | 0.39 | $ | 0.38 | $ | 1.54 | $ | 1.50 |
- See Non-GAAP Financial Measures section below.
- All references to same store sales exclude the foreign exchange impact.
- Unaudited interim financial information.
Annual Highlights
- Six new stores were opened, four in Canada and two in International Operations.
- Sales increased 5.1%.
- Net earnings increased $8.5 million or 6.7%.
- Return on average equity(1) was 19.9%.
- Return on net assets(1) was 17.7%.
- Debt-to-Equity was 0.40 at January 31, 2024 and has remained below 1.0 since 2000.
- Quarterly dividends increased $0.01 per share or 2.6% to $0.39 per share in September 2023 and annual dividends per share have increased 3.2% on a compound annual growth basis over the past 10 years.
IBF4
