Sears Canada Q2 FY'13 sales slip 9.6%

Net earnings for the second quarter were $152.8 million or $1.50 per share compared to a net loss of $9.8 million or 10 cents per share for the second quarter last year.

Included in net earnings for the second quarter this year is a pre-tax gain of $185.7 million related to transactions for the vacating of two stores, and the granting of an option regarding the vacating of a third store, as announced by the Company on June 14, 2013.

Excluding the after-tax gain from these transactions of $164.0 million, the net loss for the second quarter of 2013 was $11.2 million or 11 cents per share.

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization and non-recurring items) for the second quarter this year was $20.2 million versus $24.8 million in the second quarter last year. Adjusted EBITDA for the second quarter last year included $5.7 million related to 4 stores for which the leases were terminated prior to the end of 2012.

Total revenues for the 26-week period ended August3, 2013 were $1,827.2 million compared to $1,989.9 million for the 26-week period last year, which ended July28, 2012, a decrease of 8.2%. Same store sales decreased 2.5%.

Net earnings for the first half of 2013 was $121.6 million or $1.19 per share compared to net earnings of $83.2 million or 81 cents per share for the first half of last year. Included in earnings for the first half of last year was a pre-tax gain of $164.3 million related to lease terminations on three properties.

Excluding the after-tax gains associated with vacating stores of $164.0 million and $137.9 million in the first half of 2013 and 2012, respectively, the net loss for the first half of 2013 was $42.4 million or 42 cents per share and the net loss for the first half of 2012 was $54.7 million or 54 cents per share.

Adjusted EBITDA for the first half of the year was $10.4 million versus $2.1 million for the first half of last year. Adjusted EBITDA for the first half of last year included $6.0 million related to 4 stores for which the leases were terminated prior to the end of 2012.

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Sears Canada