Welcome!

Microsoft Cloud Authors: David H Deans, Yeshim Deniz, Janakiram MSV, Andreas Grabner, Stackify Blog

News Feed Item

Indigo Q2 Results Reflect Strong Margin and Productivity Improvements

Plum Rewards Membership Tops 5 Million Customers

TORONTO, Nov. 6, 2012 /CNW/ - Indigo Books & Music Inc. (TSX: IDG), Canada's largest book, gift and specialty toy retailer reported a 5.9% decrease in net revenue for its second quarter ending September 29, 2012. Revenue for the quarter was $185.6 million, down $11.6 million from last year driven primarily by a delay in the planned launch of the new Kobo devices.  In addition, the Company operated seven fewer Coles stores.  Book sales for the quarter were down only modestly to last year owing to strong titles as well as effective efforts to drive book sales both in store and online.

On a comparable store basis, Indigo and Chapters superstores posted a 6.5% decrease in revenue, while Coles and IndigoSpirit small format stores were down 2.2%.

Commenting on the results, CEO Heather Reisman said, "We are focused on driving significant margin and productivity improvements and are pleased that our on-going efforts are reflected in our results.  We will continue to broaden our assortment in our key growth categories to drive higher top line sales to offset the decline in physical books. We're also pleased to have the newest Kobo eReaders now in store as top gift picks for the upcoming holiday season."

The net loss attributable to shareholders of the Company from continuing operations improved $24.8 million from a loss of $28.8 million last year to a loss of $4.0 million this year.  The significant reduction in net loss was due to there being no impairment charges in the current year.  In the same period last year, the Company recorded a full write down of the $25.4 million of goodwill allocated to the Indigo segment.  In addition, the Company experienced improvements in margin and productivity in the current year.

The net loss per share from continuing operations improved from a loss of $1.14 per share last year to a loss of $0.16 per share due to the above noted factors.

In the quarter, the Company's plum rewards program was recognized for global leadership, earning the award for Loyalty Innovation in Retail at the 3rd Annual COLLOQUY Loyalty Awards.  In less than 18 months, five million Canadians joined the plum rewards program, collecting over seven billion plum points.  Designed in response to customer feedback, plum rewards help shoppers discover products that match their interests and passions while rewarding and recognizing their purchases. Plum rewards members can collect points on virtually every in-store purchase, have self-service access to personalized recommendations and offers online or at in-store kiosks, and enjoy special member pricing on online book purchases.

Also in the second quarter, Indigo launched its award winning annual Adopt-A-School program, a three week national fundraising campaign that raised over $580 thousand — the equivalent of over 50 thousand books — to support 570 participating schools across Canada. Through the program Indigo helps augment the $1.5 million in grants made annually by the Indigo Love of Reading Foundation to benefit high needs elementary schools.

The Board of Directors today approved a quarterly dividend of 11 cents per common share to be paid on December 5, 2012, to all shareholders of record as of November 20, 2012.

Forward-Looking Statements
Statements contained in this news release that are not historical facts are forward-looking statements which involve risk and uncertainties that could cause results to differ materially from those expressed in the forward-looking statements. Among the key factors that could cause such differences are: general economic, market or business conditions in Canada; competitive actions by other companies; changes in laws or regulations; and other factors, many of which are beyond the control of the Company.

Non-IFRS Financial Measures
The Company prepares its unaudited interim condensed consolidated financial statements in accordance with International Financial Reporting Standards and International Accounting Standards 34, "Interim Financial Reporting."  In order to provide additional insight into the business, the Company has also provided non-IFRS data, including comparative store sales growth, in the press release above. This measure does not have a standardized meaning prescribed by IFRS and is therefore specific to Indigo and may not be comparable to similar measures presented by other companies.  Comparative store sales growth is a key indicator used by the Company to measure performance against internal targets and prior period results. This measure is commonly used by financial analysts and investors to compare Indigo to other retailers. Comparable store sales are defined as sales generated by stores that have been open for more than 12 months on a 52-week basis.

About Indigo Books & Music Inc.
Indigo is a publicly traded Canadian company listed on the Toronto Stock Exchange (IDG). As the largest book, gift and specialty toy retailer in Canada, Indigo operates in all provinces under different banners including Indigo Books & Music; Indigo Books, Gifts, Kids; IndigoSpirit; Chapters; The World's Biggest Bookstore; and Coles. The online channel, indigo.ca, offers a one-stop online shop with a robust selection of books, toys, home décor, stationery and gifts.

In 2004, Indigo founded the Indigo Love of Reading Foundation, a registered charity that provides new books and education materials to high-needs Canadian elementary schools, to address the literacy crisis in Canada. To date the Foundation, as well as the Indigo "Adopt A School" program, have contributed $13 million, equating to more than a million books, to high-needs elementary schools across Canada.  Visit loveofreading.org for more information.

To learn more about Indigo, please visit the Our Company section at indigo.ca.

Consolidated Balance Sheets
(Unaudited)
         
    As at As at As at
    September 29, October 1, March 31,
(thousands of Canadian dollars)   2012 2011 2012
ASSETS        
Current        
Cash and cash equivalents   192,598 45,491 207,601
Accounts receivable   14,092 21,831 12,627
Inventories   247,604 263,918 229,706
Prepaid expenses   4,835 15,285 3,695
Total current assets   459,129 346,525 453,629
Property, plant and equipment   62,111 76,031 67,464
Intangible assets   22,467 31,251 22,810
Goodwill   - 1,216 -
Deferred tax assets   53,986 68,250 48,633
Total assets   597,693 523,273 592,536
LIABILITIES AND EQUITY        
Current        
Accounts payable and accrued liabilities   198,435 224,159 174,201
Unredeemed gift card liability   37,912 36,292 42,711
Provisions   175 - 232
Deferred revenue   12,882 12,401 11,234
Income taxes payable   111 650 65
Notes payable   - 5,168 -
Current portion of long-term debt   900 1,305 1,060
Total current liabilities   250,415 279,975 229,503
Long-term accrued liabilities   4,448 5,038 5,800
Long-term provisions   391 - 460
Long-term debt   1,045 1,623 1,141
Total liabilities   256,299 286,636 236,904
Equity        
Share capital   203,660 202,962 203,373
Contributed surplus   7,570 6,839 7,039
Retained earnings   130,164 4,882 145,220
Total equity attributable to shareholders of Indigo   341,394 214,683 355,632
Non-controlling interest   - 21,954 -
Total equity   341,394 236,637 355,632
Total liabilities and equity   597,693 523,273 592,536

Consolidated Statements of Loss and Comprehensive Loss
(Unaudited)
         
  13-week 13-week 26-week 26-week
  period ended period ended period ended period ended
  September 29, October 1, September 29, October 1,
(thousands of Canadian dollars, except per share data) 2012 2011 2012 2011
         
Revenues 185,589 197,248 372,072 385,253
Cost of sales 100,487 111,497 206,875 222,579
Gross profit 85,102 85,751 165,197 162,674
Operating and administrative expenses 90,975 115,579 181,149 208,270
Operating loss (5,873) (29,828) (15,952) (45,596)
Interest on long-term debt and financing charges 29 39 60 83
Interest expense (income) on cash and cash equivalents (578) 56 (1,159) (15)
Loss before income taxes (5,324) (29,923) (14,853) (45,664)
Income tax recovery (1,311) (1,074) (5,353) (4,852)
Loss and comprehensive loss for the period from continuing operations (4,013) (28,849) (9,500) (40,812)
Loss and comprehensive loss for the period from discontinued operations (net of tax) - (11,542) - (23,773)
Net loss and comprehensive loss for the period (4,013) (40,391) (9,500) (64,585)
         
Net loss and comprehensive loss attributable to:        
Shareholders of Indigo (4,013) (35,120) (9,500) (53,225)
Non-controlling interest - (5,271) - (11,360)
         
Net loss per common share from continuing operations        
Basic $(0.16) $(1.14) $(0.38) $(1.62)
Diluted $(0.16) $(1.14) $(0.38) $(1.62)
         
         
Net loss per common share from discontinued operations        
Basic $ - $(0.25) $ - $(0.49)
Diluted $ - $(0.25) $ - $(0.49)
         
Net loss per common share        
Basic $(0.16) $(1.39) $(0.38) $(2.11)
Diluted $(0.16) $(1.39) $(0.38) $(2.11)

Consolidated Statements of Cash Flows
(Unaudited)
  13-week 13-week 26-week 26-week
  period ended period ended period ended period ended
  September 29, October 1, September 29, October 1,
(thousands of Canadian dollars) 2012 2011 2012 2011
         
CASH FLOWS FROM OPERATING ACTIVITIES        
Net loss from continuing operations for the period (4,013) (28,849) (9,500) (40,812)
Add (deduct) items not affecting cash        
  Depreciation of property, plant and equipment 4,329 4,557 9,048 9,016
  Amortization of intangible assets 2,515 2,103 4,937 4,184
  Impairment of capital assets - - 250 -
  Impairment of goodwill - 25,416 - 25,416
  Loss on disposal of capital assets - 11 44 15
  Stock-based compensation 200 75 359 670
  Directors' compensation 96 118 229 267
  Deferred tax assets (1,311) (1,250) (5,353) (4,852)
  Other 510 (2,125) (243) (2,411)
Net change in non-cash working capital balances related to continuing operations 10,667 (18,306) (897) (11,501)
Interest on long-term debt and financing charges 29 39 60 83
Interest expense (income) on cash and cash equivalents (578) 56 (1,159) (15)
Income taxes received 41 - 45 -
Operating cash flows of discontinued operations - (282) - (16,813)
Cash flows from (used in) operating activities 12,485 (18,437) (2,180) (36,753)
         
CASH FLOWS FROM INVESTING ACTIVITIES        
Acquisition of non-capital tax losses - (450) - (10,559)
Purchase of property, plant and equipment (2,764) (3,651) (3,548) (5,848)
Addition of intangible assets (2,784) (2,259) (4,614) (3,888)
Investing cash flows of discontinued operations - (2,488) - (4,646)
Cash flows used in investing activities (5,548) (8,848) (8,162) (24,941)
         
CASH FLOWS FROM FINANCING ACTIVITIES        
Notes payable - 225 - 5,280
Repayment of long-term debt (338) (393) (684) (712)
Interest received 565 10 1,124 94
Proceeds from share issuances 142 - 230 578
Purchase of shares in subsidiary - - - (3,009)
Dividends paid (2,780) (2,772) (5,556) (5,539)
Financing cash flows of discontinued operations - 36 - 24,478
Cash flows from (used in) financing activities (2,411) (2,894) (4,886) 21,170
         
Effect of foreign currency exchange rate changes on cash and cash equivalents (523) 2,285 225 2,354
         
Net increase (decrease) in cash and cash equivalents during the period 4,003 (27,894) (15,003) (38,170)
Cash and cash equivalents, beginning of period 188,595 73,385 207,601 83,661
Cash and cash equivalents, end of period 192,598 45,491 192,598 45,491
         
Cash and cash equivalents attributable to:        
Continuing operations 192,598 18,497 192,598 18,497
Discontinued operations - 26,994 - 26,994
  192,598 45,491 192,598 45,491

 

 

SOURCE Indigo Books & Music Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, discussed the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insights from the vast t...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
From 2013, NTT Communications has been providing cPaaS service, SkyWay. Its customer’s expectations for leveraging WebRTC technology are not only typical real-time communication use cases such as Web conference, remote education, but also IoT use cases such as remote camera monitoring, smart-glass, and robotic. Because of this, NTT Communications has numerous IoT business use-cases that its customers are developing on top of PaaS. WebRTC will lead IoT businesses to be more innovative and address...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, will provide a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to ...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...
Recently, IoT seems emerging as a solution vehicle for data analytics on real-world scenarios from setting a room temperature setting to predicting a component failure of an aircraft. Compared with developing an application or deploying a cloud service, is an IoT solution unique? If so, how? How does a typical IoT solution architecture consist? And what are the essential components and how are they relevant to each other? How does the security play out? What are the best practices in formulating...
In his session at @ThingsExpo, Arvind Radhakrishnen discussed how IoT offers new business models in banking and financial services organizations with the capability to revolutionize products, payments, channels, business processes and asset management built on strong architectural foundation. The following topics were covered: How IoT stands to impact various business parameters including customer experience, cost and risk management within BFS organizations.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
SYS-CON Events announced today that Elastifile will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Elastifile Cloud File System (ECFS) is software-defined data infrastructure designed for seamless and efficient management of dynamic workloads across heterogeneous environments. Elastifile provides the architecture needed to optimize your hybrid cloud environment, by facilitating efficient...
There is only one world-class Cloud event on earth, and that is Cloud Expo – which returns to Silicon Valley for the 21st Cloud Expo at the Santa Clara Convention Center, October 31 - November 2, 2017. Every Global 2000 enterprise in the world is now integrating cloud computing in some form into its IT development and operations. Midsize and small businesses are also migrating to the cloud in increasing numbers. Companies are each developing their unique mix of cloud technologies and service...
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
SYS-CON Events announced today that DXWorldExpo has been named “Global Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Digital Transformation is the key issue driving the global enterprise IT business. Digital Transformation is most prominent among Global 2000 enterprises and government institutions.
SYS-CON Events announced today that Grape Up will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Grape Up is a software company specializing in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the U.S. and Europe, Grape Up works with a variety of customers from emergi...
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
SYS-CON Events announced today that Secure Channels, a cybersecurity firm, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Secure Channels, Inc. offers several products and solutions to its many clients, helping them protect critical data from being compromised and access to computer networks from the unauthorized. The company develops comprehensive data encryption security strategie...
An increasing number of companies are creating products that combine data with analytical capabilities. Running interactive queries on Big Data requires complex architectures to store and query data effectively, typically involving data streams, an choosing efficient file format/database and multiple independent systems that are tied together through custom-engineered pipelines. In his session at @BigDataExpo at @ThingsExpo, Tomer Levi, a senior software engineer at Intel’s Advanced Analytics ...
WebRTC is great technology to build your own communication tools. It will be even more exciting experience it with advanced devices, such as a 360 Camera, 360 microphone, and a depth sensor camera. In his session at @ThingsExpo, Masashi Ganeko, a manager at INFOCOM Corporation, will introduce two experimental projects from his team and what they learned from them. "Shotoku Tamago" uses the robot audition software HARK to track speakers in 360 video of a remote party. "Virtual Teleport" uses a...
SYS-CON Events announced today that App2Cloud will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct. 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. App2Cloud is an online Platform, specializing in migrating legacy applications to any Cloud Providers (AWS, Azure, Google Cloud).