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Report Date : |
30.12.2013 |
IDENTIFICATION DETAILS
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Name : |
REITMANS ( |
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Registered Office : |
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Country : |
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Date of Incorporation : |
17.03.1995 |
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Legal Form : |
Public Company |
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Line of Business : |
Subject operates as a ladies’ wear specialty apparel retailer |
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No. of Employees : |
11,000 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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|
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 : |
No complaints |
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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 – March 31st, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
Canada |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
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 |
CANADA - ECONOMIC OVERVIEW
As a high-tech industrial society in the trillion-dollar class,
Canada resembles the US in its market-oriented economic system, pattern of
production, and affluent living standards. Since World War II, the impressive
growth of the manufacturing, mining, and service sectors has transformed the
nation from a largely rural economy into one primarily industrial and urban.
The 1989 US-Canada Free Trade Agreement (FTA) and the 1994 North American Free
Trade Agreement (NAFTA) (which includes Mexico) touched off a dramatic increase
in trade and economic integration with the US its principal trading partner.
Canada enjoys a substantial trade surplus with the US, which absorbs about
three-fourths of Canadian exports each year. Canada is the US's largest foreign
supplier of energy, including oil, gas, uranium, and electric power. Given its
great natural resources, highly skilled labor force, and modern capital plant,
Canada enjoyed solid economic growth from 1993 through 2007. Buffeted by the
global economic crisis, the economy dropped into a sharp recession in the final
months of 2008, and Ottawa posted its first fiscal deficit in 2009 after 12
years of surplus. Canada's major banks, however, emerged from the financial
crisis of 2008-09 among the strongest in the world, owing to the financial
sector's tradition of conservative lending practices and strong capitalization.
Canada achieved marginal growth in 2010-12 and plans to balance the budget by
2015. In addition, the country's petroleum sector is rapidly becoming an even
larger economic driver with Alberta's oil sands significantly boosting Canada's
proven oil reserves, ranking the country third in the world behind Saudi Arabia
and Venezuela
Source
: CIA
Company name: REITMANS (CANADA) LIMITEE (in French)
REITMANS (CANADA) LIMITED (in English)
Address: 250 Sauve Street W., Montreal, Quebec H3L 1Z2 - Canada
Telephone: +1 514-384-1140
Fax: +1 514-385-2723
Website: www.reitmans.ca
Corporate ID#: 3517098
State: Federal
Judicial form: Public Company (TSX = RET)
Date incorporated: March 17, 1995
Date founded: 1926
Stock: As at December 10, 2013,
the Corporation had 51,145,506
shares outstanding.
Value: No
par value
Name of
manager: Jeremy H. REITMAN
Business:
Reitmans (Canada) Limited operates as a ladies’ wear specialty apparel retailer in Canada.
It offers sweaters, blouses and shirts, tees and knits, camis and tanks, pants, outerwear, denim, jackets, blazers, dresses, active wear, comfort clothing, capris, skirts, and shorts and skorts; shoes, sandals, and boots; and accessories comprising jewellery, sunglasses, scarves, purses and bags, and belts.
The company operates its stores under the Reitmans, Smart Set, RW & CO., Thyme Maternity, Penningtons, Addition Elle, and Cassis banners in malls, retail power centers, strip plazas, and on shopping streets.
As of February 02, 2013, it operated 911 stores consisting of 361 Reitmans, 146 Smart Set, 73 RW & CO., 72 Thyme Maternity, 153 Penningtons, and 106 Addition Elle stores.
The company also operates an e-commerce Web site.
Reitmans (Canada) Limited was founded in 1926 and is based in Montreal, Canada.
CAE: 6131
Staff: 11,000
Operations
& branches:
At above
address, we find a large store, warehouse and office, owned.
Shareholders:
1st shareholder:
SHERLEX INVESTMENTS INC.
3300 Highway 7, Ste 702, Vaughan, Ontario L4K 4M3 – Canada
2nd shareholder:
DANAMIS INVESMENTS COMPANY
1959 Upper Water Street, Ste 900, Halifax, Nova Scotia B3J 3N2 – Canada
3rd shareholder:
HOWELLEN INVESTMENTS LTD
3300 Highway 7, Ste 702, Vaughan, Ontario L4K 4M3 – Canada
Management:
Jeremy H.
REITMAN
Chairman
and CEO
Mr. Jeremy H. Reitman serves as the Chief Executive Officer of Reitmans Canada Limited. Mr. Reitman serves as the President and Chief Executive Officer of Shirmax Fashions Ltd. He served as the President of Reitmans
Canada Ltd. until June 2010. He has been the Chairman of Reitmans Canada Limited since June 2010. He serves as an Honorary Director at Bank of Montreal. He has been a Director of Reitmans Canada Ltd. since 1975. He serves as director of Shirmax Fashions Ltd. He serves as a Member of the Board of Governors of McGill University. He served as a Director of Bank of Montreal from January 19, 1987 to March 22, 2011.
Mr. Reitman is a lawyer by profession and holds an AB with a major in Economics from Dartmouth College in Hanover, New Hampshire and a B.C.L. from McGill University.
Stephen F.
REITMAN
President
and COO
Mr. Stephen F. Reitman has been the President of Reitmans Canada Ltd., since June 2010. Mr. Reitman serves as an Executive Vice President and Chief Operating Officer of Shirmax Fashions Ltd. He served as the Chief
Operating Officer and Executive Vice President of Reitmans Canada Ltd. from 1984 to June 2010. From 1971 to 1984, he held various management positions with Reitmans.
He served as an Executive Vice President of Reitmans Canada Ltd. until June 2010. He has been an Independent Director of Global Brands Acquisition Corp. since October 2007. He has been a Director of Reitmans Canada Ltd., since 1984 and Michael Kors Holdings Ltd. since December 2011. He serves as a Director of Celio International S.A and Shirmax Fashions Ltd. He serves as a Director of Simone Perele Canada Ltd., a wholly owned subsidiary of Simone Perele S.A.
Mr. Reitman received an M.B.A. from the Wharton School of the University of Pennsylvania in 1971.
Eric
WILLIAMS, CFO
On
attachment: 10K 2012-2013
|
Currency in |
As of: |
Jan 30 |
Jan 29 |
Jan 28 |
Feb 02 |
|
TOTAL REVENUES |
1,056.5 |
1,059.0 |
1,019.4 |
1,000.5 |
|
|
NET INCOME |
67.2 |
89.0 |
47.5 |
26.6 |
|
On December 16, 2013, Reitmans (Canada) Limited announced that it has received approval from the Toronto Stock Exchange to proceed with a normal course issuer bid. Under the bid, the Corporation may purchase up to 4,000,000 Class A Non-Voting Shares of the Corporation representing approximately 10% of the public float of the issued and outstanding Class A Non-Voting Shares as at December 10, 2013. The average daily trading volume for the 6-month period preceeding December 1, 2013 is 149,622 Shares.
In accordance with TSX rules, a maximum daily repurchase of 25% of this average may be made, representing 37,405 Shares.
Sales for the nine months ended November 2, 2013 were $719,720,000 as compared with $732,854,000 for the nine months ended October 27, 2012, a decrease of 1.8%.
Same store sales decreased 3.0%. Sales were negatively impacted due to a reduction in the number of stores as the Company rationalizes underperforming locations combined with competitive pressures necessitating more promotional pricing. The retail environment remains challenging with increased competitive pressure for apparel retailers. Sales were also impacted by significantly slower than anticipated acceptance by consumers of the Company’s repositioning and rebranding efforts in its Smart Set banner.
The Company’s gross margin for the nine months ended November 2, 2013 decreased to 62.6% from 64.1% for the nine months ended October 27, 2012. Increased markdowns in the Smart Set banner significantly contributed to the reduction in gross margin.
Net earnings for the nine months ended November 2, 2013 were $13,359,000 ($0.21 diluted earnings per share) as compared with $27,501,000 ($0.42 diluted earnings per share) for the nine months ended October 27, 2012.
In the nine months ended November 2, 2013, adjusted EBITDA1 was $62,317,000 as compared with $77,543,000 for the nine months ended October 27, 2012, a decrease of 19.6%.
On attachment:
- 10K 2012/2013
- 3rd 10Q 2013
Banks: Bank of Canada
Royal Bank of Canada
...
Legal filings & complaints:
As of today date, there are several filing pending involving the Company as plaintiff of defendant.
Secured debts summary: Several
Trade
references:
Date
reported: November 2013
High
credit: CAD 50,000+
Now owing: 0
Past due: 0
Last
purchase: October 2013
Line of
business: Office supply
Paying
status: On terms
Date
reported: November 2013
High
credit: CAD 12,500,000+
Now owing: 0
Past due: 0
Last
purchase: October 2013
Line of
business: Payroll
Paying
status: As agreed
Date
reported: November 2013
High
credit: CAD 20,000+
Now owing: 0
Past due: 0
Last
purchase: October 2013
Line of
business: Telecommunications
Paying
status: On terms
Domestic
credit history:
National
Credit Bureaus gave a satisfying credit rating.
International credit history:
Payments of imports are currently made on terms.
Other
comments:
The Company
maintains its business.
The Company
is in good standing.
This means
that all local and federal taxes were paid on due date.
Last annual
meeting was held on June 4, 2013.
The risk is
low.
Our
opinion:
A business
connection may be conducted.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.06 |
|
|
1 |
Rs.102.03 |
|
Euro |
1 |
Rs.85.27 |
INFORMATION DETAILS
|
Report
Prepared by : |
NIS |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.