MIRA INFORM REPORT
|
Report Date : |
15.04.2011 |
IDENTIFICATION DETAILS
|
Name : |
CANADIAN TIRE CORPORATION LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
29.12.2007 |
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Date of Incorporation : |
01.12.1927 |
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Legal Form : |
Limited Company |
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Line of Business : |
Retail, Financial Services and petroleum |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment
Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – December 31, 2010
|
Country Name |
Previous Rating (30.09.2010) |
Current Rating (31.12.2010) |
|
|
a1 |
a1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
GEOPOLITICS - CANADA
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POLITICAL DATA |
ECONOMIC DATA |
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Form of Government: Federal
|
Currency: USD |
IDENTIFICATION
|
Ordered as: |
Canadian Tire Corporation Ltd |
||
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Address in the order: |
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Legal Name: |
CANADIAN TIRE CORPORATION LIMITED |
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Trade Name: |
CANADIAN TIRE CORP LTD |
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Legal Address |
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Telephone: |
+ 1 (416) 480-30 00 |
Document Number : |
NA |
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Fax: |
+ 1 (416) 544-77 15 |
Legal Form: |
Limited Company |
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Email: |
Registered in: |
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Website: |
Date Created: |
1927 |
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Manager: |
Stephen Wetmore, President |
Date Incorporated: |
December 1st, 1927 |
|
Staff: |
58,000 employees |
Stock: |
78,178,066 |
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|
|
Value: |
$0.84 per share. |
|
Activity: |
Retail, financial services and petroleum |
||
BANKS
|
Name of the Bank |
Canadian Imperial Bank of Commerce |
|
Name of the Bank |
Bank of |
|
Name of the Bank |
Royal Bank of |
BUSINESS
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HISTORY |
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|
Canadian Tire Corporation, Limited was founded in 1922 Key developments for CANADIAN TIRE CORP (CTC) Canadian Tire Corp. Ltd. Voluntarily Recalls the Yardworks 950W
Generators 02/24/2011 Canadian Tire Corp. Ltd. is voluntarily recalling the Yardworks 950W
Generators (product # 55-0330), as it has been determined that these
generators may experience fuel leaks. These products were available for sale
at Canadian Tire stores in 2006 and were discontinued in July 2008. Customers
who have bought this product are asked to discontinue use and return it to
any Canadian Tire store with proof of purchase for reimbursement. Transcontinental Inc. Concludes an Agreement with Canadian Tire Corp.
Ltd 02/17/2011 Transcontinental Inc. has concluded an agreement with Canadian Tire
Corp. Ltd. This new agreement is worth several hundred million dollars and
will start in January 2012 for 4 years. The agreement doubles the marketing
services Transcontinental provides to the retailer, making Transcontinental
Canadian Tire's leading provider of marketing solutions across |
|
PRINCIPAL ACTIVITY |
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Canadian Tire Corporation, Limited operates a network of interrelated
businesses, engaged in retail, financial services and petroleum. Canadian Tire Retail (CTR) CTR is Dealers buy merchandise from the company and sell it to consumers in
Canadian Tire stores. The company operates as a supplier for Canadian Tire
Retail’s cornerstone automotive business. PartSource is a chain of 86 specialty automotive hard parts stores
that cater to serious do-ityourselfers and professional installers of
automotive parts. The PartSource network consists of 33 franchise stores and 53 corporate
stores. Canadian Tire Petroleum (Petroleum) Petroleum is Canada’s independent
retailer of gasoline with a network of 273 gas bars, 266 convenience stores
and kiosks, 74 car washes, 13 Pit Stops and 86 propane stations. Mark’s Work Wearhouse (Mark’s) Mark’s is a Mark’s also conducts a business-to-business operation under the name
Imagewear, a division of Mark’s Work Wearhouse. Canadian Tire Financial
Services Financial Services markets a range of Canadian Tire-branded credit cards,
including the Canadian Tire Options MasterCard and Gas Advantage MasterCard.
Financial Services also markets personal loans, lines of credit, insurance
and warranty products and an emergency roadside assistance service called
Canadian Tire Roadside Assistance. Canadian Tire Bank (CTB), a wholly owned
subsidiary, manages and finances Canadian Tire’s consumer MasterCard and
retail credit card portfolios, as well as the personal loan and line of
credit portfolios. |
|
Products/Services description: |
|
|
|
The company offers high-interest savings accounts, GICs and
residential mortgages, as well as the Canadian Tire One-and-Only account,
which consolidates customers’ chequing, savings, loans and mortgage loan
balances into one account, in three pilot markets and offers guaranteed
investment certificates (GICs) through third-party brokers. Other products
and services include personal loans, lines of credit, insurance and warranty
products, and the Canadian Tire Roadside Assistance program. |
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Sales are: |
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Retail |
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Brands: |
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Mastercraft® and |
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Clients: |
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General Clientele |
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Operations area: |
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National, Local |
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The company imports from Worldwide |
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The company does not export |
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Competitors: |
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Sears Canada |
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The subject employs 58,000 employee(s) |
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PAYMENTS |
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made on a 50 days basis - monitored over the last 12 months |
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LOCATION |
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Headquarters |
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The company is headquartered at |
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Branches: |
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The company has branches all around the country. |
Shareholders - Manager - Related Companies
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Listed at the stock exchange: |
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YES |
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Shareholders Parent Company(ies): |
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The subject is a public company traded at the Canadian Stock Exchange,
under the symbol "CTC" |
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Management: |
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Stephen Wetmore President and CEO, Canadian Tire Corporation, Limited G. Michael Arnett President, Canadian Tire Retail Robyn Collver Senior Vice-President and General Counsel Kristine Freudenthaler Senior Vice-President, Information Technology and Chief Information
Officer Marco Marrone Chief Financial Officer & Executive Vice President, Finance Canadian Tire Corporation Dean McCann President, Canadian Tire Financial Services Michael B. Medline President, Canadian Tire Automotive and Dealer Relations Senior Vice-President and Treasurer Sharon Patterson Senior Vice-President, Human Resources Kenneth Silver Senior Vice-President, Corporate Strategy and Real Estate Patrick R. Sinnott Executive Vice-President, Supply Chain and Technology J. Huw Thomas Executive Vice-President of Financial Strategy & Performance Paul D. Wilson President, Mark’s Work Wearhouse, Ltd. |
Financials - COMMERCIAL TRENDS AND FORECAST
|
The subject is a public company traded at
the stock exchange. Please find enclosed the financial statements. |
|
Legal Fillings |
|
The
company is subject to various legal proceedings and claims that arise in the
ordinary course of their business. Although the outcome of these other claims
cannot be predicted with certainty, management does not believe that the
ultimate resolution of these matters will have a material adverse effect on
the financial condition or results of operations |
Rating
|
Local credit bureau gave a good credit
rate. The company is in Good Standing. This means
that all local and federal taxes were paid on due date. |
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Final Opinion |
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|
This is a large sized Canadian company,
which employs 58,000 people and has numerous years of experience in the
market. Canadian Tire Corporation is one of Year over year, Canadian Tire Corp. Ltd.
has been able to grow revenues. Most impressively, the company has been able
to reduce the percentage of sales devoted to cost of goods sold. This was a
driver that led to a bottom line growth. Compared to the same quarter last year,
Canadian Tire Corp. Ltd. has been able to grow revenues. This company's capital structure relies on
a level of debt that is comparable to the Multiline Retail industry's norm.
Additionally, there are enough liquid assets to satisfy current obligations.
Cash Collection is a strong suit as the company is more effective than most
in the industry. The structure has voluntarily recalled
generators last months. The financial consequences of this event
need to be followed. We still estimate that the subject inspire
enough confidence to bear a credit line. Monitoring is suggested to assess the
business' short term evolution. |
SUMMARY
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||
|
Profitability |
CORRECT |
Public |
NO |
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Indebtedness |
CONTROLLED |
Payments |
REGULAR |
|
Cash |
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|
APPENDIX
|
Comments |
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|
The staff transferred our call to an answering machine. |
Income
statement
Annual
|
Currency in |
As of: |
Dec 29 |
Jan 03 |
Jan 02 |
Jan 01 |
4-Year |
|
Revenues |
8,606.1 |
9,121.3 |
8,686.5 |
8,980.8 |
|
|
|
TOTAL REVENUES |
8,606.1 |
9,121.3 |
8,686.5 |
8,980.8 |
|
|
|
Cost of Goods Sold |
7,690.1 |
8,198.0 |
7,786.2 |
7,998.1 |
|
|
|
GROSS PROFIT |
916.0 |
923.3 |
900.3 |
982.7 |
|
|
|
Selling General & Admin Expenses,
Total |
30.9 |
29.0 |
24.7 |
33.0 |
|
|
|
Depreciation & Amortization, Total |
206.9 |
226.2 |
247.5 |
247.3 |
|
|
|
OTHER OPERATING EXPENSES, TOTAL |
237.8 |
255.2 |
272.2 |
280.3 |
|
|
|
OPERATING INCOME |
678.2 |
668.1 |
628.1 |
702.4 |
|
|
|
Interest Expense |
-67.1 |
-122.6 |
-147.0 |
-111.2 |
|
|
|
Interest and Investment Income |
-- |
-- |
-- |
7.9 |
|
|
|
NET INTEREST EXPENSE |
-67.1 |
-122.6 |
-147.0 |
-103.3 |
|
|
|
Other Non-Operating Income (Expenses) |
4.0 |
-- |
-- |
-- |
|
|
|
EBT, EXCLUDING UNUSUAL ITEMS |
615.1 |
545.5 |
481.1 |
599.1 |
|
|
|
Other Unusual Items, Total |
-3.9 |
-2.5 |
-1.9 |
-2.1 |
|
|
|
EBT, INCLUDING UNUSUAL ITEMS |
611.2 |
543.0 |
479.2 |
597.0 |
|
|
|
Income Tax Expense |
199.5 |
167.6 |
144.2 |
143.4 |
|
|
|
Earnings from Continuing Operations |
411.7 |
375.4 |
335.0 |
453.6 |
|
|
|
NET INCOME |
411.7 |
375.4 |
335.0 |
453.6 |
|
|
|
NET INCOME TO COMMON INCLUDING EXTRA ITEMS |
411.7 |
375.4 |
335.0 |
453.6 |
|
|
|
NET INCOME TO COMMON EXCLUDING EXTRA ITEMS |
411.7 |
375.4 |
335.0 |
453.6 |
|
|
Income
statement
Quarterly
|
Currency in |
As of: |
Apr 03 |
Jul 03 |
Oct 02 |
Jan 01 |
4-Quarter |
|
Revenues |
1,830.1 |
2,414.1 |
2,201.0 |
2,535.6 |
|
|
|
TOTAL REVENUES |
1,830.1 |
2,414.1 |
2,201.0 |
2,535.6 |
|
|
|
Cost of Goods Sold |
1,662.2 |
2,139.7 |
1,954.6 |
2,241.6 |
|
|
|
GROSS PROFIT |
167.9 |
274.4 |
246.4 |
294.0 |
|
|
|
Selling General & Admin Expenses,
Total |
4.5 |
10.3 |
10.2 |
8.0 |
|
|
|
Depreciation & Amortization, Total |
59.7 |
61.1 |
62.2 |
64.3 |
|
|
|
OTHER OPERATING EXPENSES, TOTAL |
64.2 |
71.4 |
72.4 |
72.3 |
|
|
|
OPERATING INCOME |
103.7 |
203.0 |
174.0 |
221.7 |
|
|
|
Interest Expense |
-32.0 |
-29.4 |
-30.6 |
-19.2 |
|
|
|
Interest and Investment Income |
-- |
-- |
-- |
7.9 |
|
|
|
NET INTEREST EXPENSE |
-32.0 |
-29.4 |
-30.6 |
-11.3 |
|
|
|
EBT, EXCLUDING UNUSUAL ITEMS |
71.7 |
173.6 |
143.4 |
210.4 |
|
|
|
Other Unusual Items, Total |
-- |
-- |
-- |
-2.1 |
|
|
|
EBT, INCLUDING UNUSUAL ITEMS |
71.7 |
173.6 |
143.4 |
208.3 |
|
|
|
Income Tax Expense |
22.3 |
53.7 |
40.2 |
27.2 |
|
|
|
Earnings from Continuing Operations |
49.4 |
119.9 |
103.2 |
181.1 |
|
|
|
NET INCOME |
49.4 |
119.9 |
103.2 |
181.1 |
|
|
|
NET INCOME TO COMMON INCLUDING EXTRA ITEMS |
49.4 |
119.9 |
103.2 |
181.1 |
|
|
|
NET INCOME TO COMMON EXCLUDING EXTRA ITEMS |
49.4 |
119.9 |
103.2 |
181.1 |
|
|
Balance
sheet
(Quarterly)
|
Currency in |
As of: |
Apr 03 |
Jul 03 |
Oct 02 |
Jan 01 |
4-Quarter |
|
Assets |
|
|
|
|
|
|
|
Cash and Equivalents |
745.4 |
1,049.7 |
456.5 |
554.3 |
|
|
|
Short-Term Investments |
106.6 |
156.5 |
233.0 |
195.9 |
|
|
|
TOTAL CASH AND SHORT TERM INVESTMENTS |
852.0 |
1,206.2 |
689.5 |
750.2 |
|
|
|
Accounts Receivable |
548.8 |
397.3 |
599.7 |
662.3 |
|
|
|
Other Receivables |
98.0 |
76.3 |
74.2 |
99.4 |
|
|
|
TOTAL RECEIVABLES |
646.8 |
473.6 |
673.9 |
761.7 |
|
|
|
Inventory |
1,089.3 |
934.6 |
1,239.0 |
901.5 |
|
|
|
Prepaid Expenses |
75.3 |
79.7 |
71.8 |
37.6 |
|
|
|
Finance Division Loans and Leases, Current |
2,174.6 |
2,306.0 |
2,464.5 |
2,481.2 |
|
|
|
Deferred Tax Assets, Current |
85.0 |
59.4 |
70.5 |
72.4 |
|
|
|
TOTAL CURRENT ASSETS |
4,923.0 |
5,059.5 |
5,209.2 |
5,004.6 |
|
|
|
Gross Property Plant and Equipment |
-- |
-- |
-- |
4,870.0 |
|
|
|
Accumulated Depreciation |
-- |
-- |
-- |
-1,650.2 |
|
|
|
NET PROPERTY PLANT AND EQUIPMENT |
3,173.0 |
3,159.0 |
3,179.8 |
3,219.8 |
|
|
|
Goodwill |
71.9 |
71.9 |
71.9 |
71.9 |
|
|
|
Long-Term Investments |
49.3 |
57.9 |
30.2 |
97.6 |
|
|
|
Finance Division Loans and Leases, Long
Term |
9.9 |
7.3 |
5.4 |
65.9 |
|
|
|
Other Intangibles |
264.4 |
268.5 |
275.0 |
291.1 |
|
|
|
Other Long-Term Assets |
96.6 |
100.5 |
95.5 |
13.2 |
|
|
|
TOTAL ASSETS |
8,588.1 |
8,724.6 |
8,867.0 |
8,764.1 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & EQUITY |
|
|
|
|
|
|
|
Accounts Payable |
1,236.7 |
1,134.1 |
1,508.1 |
1,299.8 |
|
|
|
Accrued Expenses |
-- |
-- |
-- |
9.3 |
|
|
|
Short-Term Borrowings |
-- |
98.7 |
97.9 |
118.0 |
|
|
|
Current Portion of Long-Term Debt/Capital
Lease |
307.6 |
305.9 |
10.2 |
22.6 |
|
|
|
Current Portion of Capital Lease
Obligations |
-- |
-- |
-- |
8.6 |
|
|
|
Other Current Liabilities, Total |
766.9 |
703.5 |
675.9 |
662.4 |
|
|
|
TOTAL CURRENT LIABILITIES |
2,311.2 |
2,242.2 |
2,292.1 |
2,112.1 |
|
|
|
Long-Term Debt |
1,099.7 |
1,098.6 |
1,093.8 |
1,049.7 |
|
|
|
Capital Leases |
-- |
-- |
-- |
29.7 |
|
|
|
Unearned Revenue, Non-Current |
-- |
-- |
-- |
95.7 |
|
|
|
Pension & Other Post-Retirement
Benefits |
-- |
-- |
-- |
63.9 |
|
|
|
Deferred Tax Liability Non-Current |
49.8 |
49.8 |
52.9 |
54.6 |
|
|
|
Other Non-Current Liabilities |
1,411.1 |
1,456.9 |
1,499.3 |
1,291.7 |
|
|
|
TOTAL LIABILITIES |
4,871.8 |
4,847.5 |
4,938.1 |
4,697.4 |
|
|
|
Common Stock |
720.7 |
720.7 |
710.8 |
711.6 |
|
|
|
Additional Paid in Capital |
0.1 |
0.2 |
0.2 |
0.3 |
|
|
|
Retained Earnings |
3,046.0 |
3,148.7 |
3,234.8 |
3,393.5 |
|
|
|
Comprehensive Income and Other |
-50.5 |
7.5 |
-16.9 |
-38.7 |
|
|
|
TOTAL COMMON EQUITY |
3,716.3 |
3,877.1 |
3,928.9 |
4,066.7 |
|
|
|
TOTAL EQUITY |
3,716.3 |
3,877.1 |
3,928.9 |
4,066.7 |
|
|
|
TOTAL LIABILITIES AND EQUITY |
8,588.1 |
8,724.6 |
8,867.0 |
8,764.1 |
|
|
Balance
sheet
Annual
|
Currency in |
As of: |
Dec 29 |
Jan 03 |
Jan 02 |
Jan 01 |
4-Year |
|
Assets |
|
|
|
|
|
|
|
Cash and Equivalents |
-- |
429.0 |
869.7 |
554.3 |
|
|
|
Short-Term Investments |
-- |
-- |
64.0 |
195.9 |
|
|
|
TOTAL CASH AND SHORT TERM INVESTMENTS |
-- |
429.0 |
933.7 |
750.2 |
|
|
|
Accounts Receivable |
715.0 |
824.1 |
835.9 |
662.3 |
|
|
|
Other Receivables |
53.2 |
64.6 |
94.7 |
99.4 |
|
|
|
TOTAL RECEIVABLES |
768.2 |
888.7 |
930.6 |
761.7 |
|
|
|
Inventory |
778.7 |
917.5 |
933.6 |
901.5 |
|
|
|
Prepaid Expenses |
29.5 |
40.2 |
40.7 |
37.6 |
|
|
|
Finance Division Loans and Leases, Current |
1,486.1 |
1,683.4 |
2,274.8 |
2,481.2 |
|
|
|
Deferred Tax Assets, Current |
75.7 |
20.2 |
82.8 |
72.4 |
|
|
|
TOTAL CURRENT ASSETS |
3,138.2 |
3,979.0 |
5,196.2 |
5,004.6 |
|
|
|
Gross Property Plant and Equipment |
4,443.9 |
4,573.8 |
4,684.7 |
4,870.0 |
|
|
|
Accumulated Depreciation |
-1,278.9 |
-1,374.9 |
-1,504.3 |
-1,650.2 |
|
|
|
NET PROPERTY PLANT AND EQUIPMENT |
3,165.0 |
3,198.9 |
3,180.4 |
3,219.8 |
|
|
|
Goodwill |
51.8 |
70.7 |
71.8 |
71.9 |
|
|
|
Long-Term Investments |
43.4 |
53.9 |
68.4 |
97.6 |
|
|
|
Finance Division Loans and Leases, Long
Term |
143.9 |
173.5 |
69.1 |
65.9 |
|
|
|
Other Intangibles |
171.0 |
247.9 |
265.4 |
291.1 |
|
|
|
Other Long-Term Assets |
51.5 |
59.9 |
21.2 |
13.2 |
|
|
|
TOTAL ASSETS |
6,764.8 |
7,783.8 |
8,872.5 |
8,764.1 |
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & EQUITY |
|
|
|
|
|
|
|
Accounts Payable |
1,675.3 |
1,388.2 |
1,300.7 |
1,299.8 |
|
|
|
Accrued Expenses |
-- |
13.0 |
9.9 |
9.3 |
|
|
|
Short-Term Borrowings |
105.5 |
-- |
83.7 |
118.0 |
|
|
|
Current Portion of Long-Term Debt/Capital
Lease |
156.3 |
14.8 |
309.3 |
22.6 |
|
|
|
Current Portion of Capital Lease
Obligations |
-- |
-- |
-- |
8.6 |
|
|
|
Other Current Liabilities, Total |
176.6 |
583.7 |
944.2 |
662.4 |
|
|
|
TOTAL CURRENT LIABILITIES |
2,113.7 |
1,999.7 |
2,647.8 |
2,112.1 |
|
|
|
Long-Term Debt |
1,341.8 |
1,373.5 |
1,101.2 |
1,049.7 |
|
|
|
Capital Leases |
-- |
-- |
-- |
29.7 |
|
|
|
Unearned Revenue, Non-Current |
48.1 |
110.9 |
104.2 |
95.7 |
|
|
|
Pension & Other Post-Retirement
Benefits |
52.0 |
56.3 |
59.8 |
63.9 |
|
|
|
Deferred Tax Liability Non-Current |
71.8 |
44.7 |
49.8 |
54.6 |
|
|
|
Other Non-Current Liabilities |
29.3 |
633.7 |
1,221.8 |
1,291.7 |
|
|
|
TOTAL LIABILITIES |
3,656.7 |
4,218.8 |
5,184.6 |
4,697.4 |
|
|
|
Common Stock |
700.7 |
715.4 |
720.4 |
711.6 |
|
|
|
Additional Paid in Capital |
2.3 |
-- |
0.2 |
0.3 |
|
|
|
Retained Earnings |
2,455.1 |
2,752.4 |
3,013.7 |
3,393.5 |
|
|
|
Comprehensive Income and Other |
-50.0 |
97.2 |
-46.4 |
-38.7 |
|
|
|
TOTAL COMMON EQUITY |
3,108.1 |
3,565.0 |
3,687.9 |
4,066.7 |
|
|
|
TOTAL EQUITY |
3,108.1 |
3,565.0 |
3,687.9 |
4,066.7 |
|
|
|
TOTAL LIABILITIES AND EQUITY |
6,764.8 |
7,783.8 |
8,872.5 |
8,764.1 |
|
|
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.48 |
|
|
1 |
Rs.72.37 |
|
Euro |
1 |
Rs.64.42 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is calculated
from a composite of weighted scores obtained from each of the major sections of
this report. The assessed factors and their relative weights (as indicated
through %) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment record
(10%)
Credit history
(10%) Market trend (10%) Operational size
(10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.