Net loss doubles at Sears Canada in Q3 FY'13

Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization and Non-Operating Activities) for the third quarter of 2013 was $7.3 million compared to $3.9 million for the third quarter last year. The net loss for the third quarter of 2013 was $48.8 million or 48 cents per share compared to a net loss of $21.9 million or 22 cents per share for the third quarter last year.

Included in the net loss for the third quarter this year are non-recurring charges of $42.8 million comprised of three components: $20.2 million primarily related to severance costs associated with internal restructuring, $16.5 million representing an asset impairment charge related to one of the Company's Regina logistics centres, and $6.1 million representing a goodwill impairment charge related to the Company's Home Installed Products and Services business.

Total revenues for the 39-week period ended November2, 2013 were $2,809.5 million compared to $3,039.3 million for the 39-week period ended October27, 2012, a decrease of 7.6%. Same store sales decreased by 1.2% during the 39-week period.

Adjusted EBITDA for the 39-week period ending November2, 2013 was $17.7 million versus $6.0 million for the 39-week period last year which ended October27, 2012. Net earnings for the 39-week period this year were $72.8 million or 71 cents per share compared to $61.3 million or 60 cents per share for the 39-week period last year.

This year's net earnings include the charges taken in the third quarter as described in the second paragraph of this release and a $185.7 million gain on lease terminations and lease amendments recognized in the second quarter of 2013. The previous year's net earnings for the first 39 weeks of the year included a $167.1 million gain on lease terminations in the first quarter of 2012.

Sears Canada