MIRA INFORM REPORT

 

 

Report Date :

17.02.2014

 

IDENTIFICATION DETAILS

 

Name :

INDIGO BOOKS & MUSIC INC.

 

 

Registered Office :

468 King Street West, Suite 500 Toronto, Ontario M5V 1L8

 

 

Country :

Canada

 

 

Date of Incorporation :

1940

 

 

Legal Form :

Public Company   (TSX = IDG)

 

 

Line of Business :

·         Subject operates as a book, gift, and specialty toy retailer in Canada.

·         The subject operates chapters.indigo.ca, an e-commerce retail destination that sells books, gifts, toys, DVDs, and music.

 

 

No. of Employees :

6,500

 

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

 

Status :

Satisfactory

 

 

Payment Behaviour :

No Complaints

 

 

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 – September 30, 2013

 

Country Name

Previous Rating

(30.06.2013)

Current Rating

(30.09.2013)

Canada

A1

A1

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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 and address

 

Company name:            INDIGO BOOKS & MUSIC INC.

Headquarters:               468 King Street West, Suite 500 Toronto, Ontario M5V 1L8 - Canada

Telephone:                    +1 416-364-4499

Fax:                              +1 416-364-0355

Website:                       www.chapters.indigo.ca

Mailing address:            100 Alfred Kuehne Blvd, Brampton, Ontario L6T 4K4 –Canada

 

 

Company Summary

 

Corporate ID#:               ON-001653848

State:                           Ontario

Judicial form:                 Public Company   (TSX = IDG)

Date incorporated:          April 3, 2005

Date founded:                1940

Stock:                           25,298,239 shares issued and outstanding

Market value:                 CAD 230,213,975= (as of Feb 12, 2014)

Name of manager:          Heather M. REISMAN

 

 

ACTIVITIES & OPERATIONS

 

Business:

 

Indigo Books & Music Inc. operates as a book, gift, and specialty toy retailer in Canada. The company operates chapters.indigo.ca, an e-commerce retail destination that sells books, gifts, toys, DVDs, and music.

It also operates seasonal kiosks and year-round stores in shopping malls, which sell calendars, games, and gifts.

As of December 31, 2012, the company operated 97 superstores under the Chapters, Indigo, and the World’s Biggest Bookstore banners; and 139 small format stores under the Coles, Indigo, Indigospirit, SmithBooks, The Book Company, and Pistachio banners.

 

Indigo Books & Music Inc. was founded in 1940 and is headquartered in Toronto, Canada.

 

Staff:                 6,500

 

Operations & branches:

 

At the headquarters, we find the corporate office, owned.

 

As of March 31, 2012, the company operated 97 superstores under the Chapters, Indigo, and the World’s Biggest Bookstore banners; and 143 small format stores under the Coles, Indigo, Indigospirit, SmithBooks, The Book Company, and Pistachio banners.

 

 

SHAREHOLDERS & MANAGERS

 

Shareholders:

 

The Company is listed with the Toronto Stock Exchange under symbol DGI.

 

Management:

 

Ms. Heather M. REISMAN is CEO.

Ms. Heather M. Reisman is a Co-Founder of Indigo Books & Music Inc. (books and music), a holding of Kobo, Inc. and has been its Chairman and Chief Executive Officer since February 4, 2001. Ms. Reisman serves as Secretary of Mount Sinai Hospital. She is the Owner of Chapters Book Stores and serves as its Chief Executive Officer. She is the Founder of Trilogy Retail Enterprises L.P. She served as Chairman and Chief Executive Officer of Chapters Online Inc., a subsidiary of Indigo Books & Music Inc.

Ms. Reisman served as Chairman, and Chief Executive Officer of Indigo and its predecessors since June 27, 1996, with the exception of the period of January 19, 2001 to June 19, 2001. She served as the President of Cott Corporation from 1990 to 1992. She served as Chief Executive Officer of Chapters Inc. She served as the President of Indigo Books & Music Inc. from 1996 to 2001. Ms. Reisman has been a Director of Indigo Books & Music Inc. since February 4, 2001 and Onex Corporation since May 2003.

She serves as a Director of Mount Sinai Hospital and a member of the Steering Committee, Bilderberg. She served as a Director of J. Crew Group, Inc. since May 15, 2007. She served as a Director of Williams-Sonoma Inc. since 2000, Indigo Books & Music Inc. since 1996, Chapters Inc. (books) since 2001 and Rogers Cable Inc. since 2000. She served as a Director of Chapters Online Inc. She served as Governor of the Toronto Stock Exchange and of McGill University. Ms. Reisman was educated at McGill University.

 

Kay BREKKEN is the CFO

Ms. Brekken joined Indigo in November 2003 as Vice President Finance and was promoted to the CFO role in April 2011. As CFO, Kay is responsible for Indigo’s Finance, Accounting, Internal Audit, Loss Prevention, and IndigoGreen teams. Prior to joining Indigo, she served as CFO and VP of Regional Operations for Medical Consultants Network, a leading national provider of medical judgment services based in Seattle, Washington.

Before that, Kay was a Senior Consultant with Deloitte & Touche and a Vice President in Key Bank’s Corporate Banking Division. Kay holds a Masters in Business Administration from the University of Washington and a Bachelors of Business Administration from the University of Minnesota.

 

Subsidiaries &

Partnership:

 

- Chapters Online Inc.

- Kobo Inc.

 

 

FINANCIALS

 

On attachment:

 

- 10K 2012/2013

- 3rd 10Q 2013/2014

 

On February 4, 2014, Indigo Books & Music Inc. reported 3.0% growth in revenue for its third quarter ended December 28, 2013. Revenue for the quarter was $332.4 million, up $9.8 million from the previous year driven by double-digit growth in its lifestyle, paper, and toy businesses and new revenue from its recently launched !ndigotech™ business.

 

Banks:  Scotia Bank

            HSBC Bank

 

 

LEGAL FILINGS

 

Legal filings & complaints:

 

As of today date, there is no legal filing pending with the Courts.

 

Secured debts summary:   None

 

 

COMPANY CREDIT HISTORY

 

According to our credit analysts, during the last 6 months, 93% of trade experience indicates a regular payment.

 

Payments of imports are currently made on terms.

 

The Company is developing a strong business.

 

The banks and financial institutions confirmed a satisfying credit history.

 

The Company is in good standing.

This means that all local and federal taxes were paid on due date.

 

The risk is low.

 


 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.28

UK Pound

1

Rs.103.67

Euro

1

Rs.85.18

 

 

INFORMATION DETAILS

 

Report Prepared by :

SDA

 

 

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%)

 

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