MIRA INFORM REPORT

 

 

Report Date :

05.05.2011

 

IDENTIFICATION DETAILS

 

Name :

REITMANS (CANADA) LIMITED

 

 

Registered Office :

3300, Highway 7, Suite 702, Vaughan, Ontario, L4K 4M3

 

 

Country :

Canada

 

 

Financials (as on) :

January 2011

 

 

Date of Incorporation :

17.03.1995

 

 

Legal Form :

Limited Company

 

 

Line of Business :

Retailer of women’s apparel

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Maximum Credit Limit :

3,000,000 USD

 

 

Status :

Good

 

 

Payment Behaviour :

Regular

 

 

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)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

Off-credit

 

D

 

 

GEOPOLITICS – CANADA

 

POLITICAL DATA

ECONOMIC DATA

Form of Government: Federal


Economic Risk: Nil

Currency: 100 CAD = 105 USD

Branch Situation:Competitive

 

IDENTIFICATION

 

Legal Name:

REITMANS (CANADA) LIMITED

Trade Name:

REITMANS (CANADA) LIMITÉE

Legal Address

3300, HIGHWAY 7, SUITE 702,

VAUGHAN, ONTARIO, L4K 4M3, CANADA

 

 

Operative Address

250 Sauvé West Street,

Montreal, Quebec,

H3L 1Z2, Canada

 

Telephone:

+ 1  (514) 385-2630

Document Number :

1143780188 

Fax:

+ 1  (514) 385-2651

Legal Form:

Limited Company

Email:

NA

Registered in:

Quebec

Website:

www.reitmans.com

Date Created:

1926

Manager:

Jeremy H. Reitman, President

Date Incorporated:

March 17, 1995

Staff:

11,600

Stock:

NA

 

 

Value:

NA

Activity:

Retailer of women’s apparel

 

BANKS

 

Name of the Bank

Bank of Montreal

 

 

 

 

 

 

 

 

 

 

 

 

 

BUSINESS

 

HISTORY

 

It was founded in 1926 by Herman and Sarah Reitman.

PRINCIPAL ACTIVITY

 

Reitmans (Canada) Limited operates as a ladies’ wear specialty apparel retailer in Canada.

Products/Services description:

 

It offers tops, pants, capris, denim, skirts, jackets, shorts and skorts, dresses, outer wears, active wears, comforts, purses, bags, lightweight scarves, sandals, shoes, and belt products.

Sales are:

 

Retail

Brands:

 

Reitmans: Designed for Real Life®.

The company operates its stores under the Reitmans, Smart Set, RW & CO., Thyme Maternity, Cassis, Penningtons, and Addition Elle brand names in malls, strip plazas, retail power centers, and shopping streets.

Clients:

 

Final consumers

Operations area:

 

National

The company imports from worldwide.

The company does not export

Trade References:

 

The person contacted refused to provide the names of their suppliers for us to check the trade references.

Competitors:

 

Hudson's Bay Company

Le Château Inc.

Northern Reflections Ltd.

The subject employs 10 600 employee(s)

PAYMENTS

 

regular

LOCATION

Headquarters

 

The company is headquartered at the above operative address. The legal address is the one registered at the public Registry of Quebec and is that of the registered agent.

Branches:

 

As of January 29, 2011, it operated 968 stores consisting of 364 Reitmans, 158 Smart Set, 67 RW & CO., 75 Thyme Maternity, 22 Cassis, 161 Penningtons, and 121 Addition Elle stores.

 

 

Shareholders - Manager - Related Companies

 

Listed at the stock exchange:

 

NO

Management:

 

The directors of the company are:

Jeremy H. Reitman, Chief Executive Officer, President,

Eric Williams, Vice-President Finance and Chief Financial Officer,

Lesya McQueen, President of Smart Set,

Henry Fiederer, President of Reitmans Division,

Kerry Mitchell, President of Penningtons,

Pierre Lavallée as Executive Vice-President,

Stephen F. Reitman, Executive Vice President and Director.

 

 

Legal Fillings

 The sources consulted record no detrimental legal or labor court information.

 

 

The last annual report was filed on  July 2, 2011.

 

 

 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.

 

 

 Final Opinion

 

The company has 85 years in the business.

It is a large sized Canadian company, evolving in a competitive sector.

Profitability is good, indebtedness is low, cash is good and payments are regular.

We did not find a specific adverse record against the subject.

A credit line may be considered for 3,000,000 USD.

 

 

 

SUMMARY


FINANCIAL SUMMARY


DEBT COLLECTIONS AND PAYMENTS

 

Profitability

GOOD

Public

NO

 

 

Indebtedness

LOW

Payments

REGULAR

 

 

Cash

GOOD

 

 

 

 

 

 

APPENDIX

 

Comments

 

The receptionist refused to provide any information.

 

Reitmans (Canada) Limited Income Statement

 

Jan 11

Jan 10

Jan 09

Revenue

1,068.5

986.6

854.4

Cost of Goods Sold

886.2

838.6

707.3

Gross Profit

182.3

148.0

147.1

Gross Profit Margin

17.1%

15%

17.2%

SG&A Expense

--

--

--

Depreciation & Amortization

60.4

56.6

47.3

Operating Income

121.9

91.4

99.8

Operating Margin

11.4%

9.3%

11.7%

Nonoperating Income

3.7

1.9

4.4

Nonoperating Expenses

(0.8)

(0.8)

--

Income Before Taxes

124.9

92.5

103.4

Income Taxes

38.1

29.7

33.6

Net Income After Taxes

86.9

62.8

69.8

Continuing Operations

86.9

62.8

69.8

Discontinued Operations

--

--

--

Total Operations

86.9

62.8

69.8

Total Net Income

86.9

62.8

69.8

Net Profit Margin

8.1%

6.4%

8.2%

Diluted EPS from Total Net Income

1.29

0.92

0.98

Dividends per Share

0.78

0.67

0.59

 

All amounts in millions of US Dollars except per share amounts.

 

 

 

 

 

Reitmans (Canada) Limited Balance Sheet

Assets

Jan 11

Jan 10

Jan 09

Current Assets

Cash

229.6

213.4

174.0

Net Receivables

2.9

2.7

8.2

Inventories

73.1

58.9

52.1

Other Current Assets

85.5

58.2

36.0

Total Current Assets

391.1

333.3

270.3

Net Fixed Assets

194.3

196.7

203.2

Other Noncurrent Assets

71.1

59.6

41.4

Total Assets

656.5

589.6

514.8

Liabilities

Jan 11

Jan 10

Jan 09

Current Liabilities

Accounts Payable

--

--

57.4

Short-Term Debt

1.4

1.2

1.0

Other Current Liabilities

94.2

77.0

0.0

Total Current Liabilities

95.6

78.2

58.4

Long-Term Debt

10.0

10.7

10.4

Other Noncurrent Liabilities

28.1

24.3

21.2

Total Liabilities

133.7

113.2

90.0

Shareholder's Equity

Preferred Stock Equity

--

--

--

Common Stock Equity

522.8

476.4

424.8

Total Equity

522.8

476.4

424.8

Shares Outstanding (thou.)

66,309.0

67,600.0

23,830.0

 

All amounts in millions of US Dollars except per share amounts.

Reitmans (Canada) Limited Cash Flow Statement

 

Jan 11

Jan 10

Jan 09

Net Operating Cash Flow

147

136

105

Net Investing Cash Flow

(65.9)

(38.7)

(57.7)

Net Financing Cash Flow

(79.6)

(82.9)

(48.5)

Net Change in Cash

1.5

13.6

(0.2)

Depreciation & Amortization

60.4

56.6

47.3

Capital Expenditures

(46.8)

(31.0)

(47.3)

Cash Dividends Paid

(51.8)

(46.1)

(41.4)

 

All amounts in millions of US Dollars except per share amounts.

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.44.59

UK Pound

1

Rs.73.42

Euro

1

Rs.66.04

 

 

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

--

NB

                                       New Business

 

--

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.