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Report Date : |
17.02.2014 |
IDENTIFICATION DETAILS
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Name : |
INDIGO BOOKS & MUSIC INC. |
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Registered Office : |
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Country : |
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Date of Incorporation : |
1940 |
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Legal Form : |
Public Company (TSX = IDG) |
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Line of Business : |
·
Subject operates as a book, gift, and specialty
toy retailer in ·
The subject operates chapters.indigo.ca, an e-commerce
retail destination that sells books, gifts, toys, DVDs, and music. |
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No. of Employees : |
6,500 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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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 – September 30, 2013
|
Country Name |
Previous Rating (30.06.2013) |
Current Rating (30.09.2013) |
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Canada |
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 |
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.
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Source
: CIA |
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
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
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:
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.
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
& complaints:
As of today date, there is no legal filing pending with the Courts.
Secured debts summary: None
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
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Indian Rupees |
|
US Dollar |
1 |
Rs.62.28 |
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|
1 |
Rs.103.67 |
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Euro |
1 |
Rs.85.18 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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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 |
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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 |
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41-55 |
Ba |
Overall
operation is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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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 |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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-- |
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.