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Report No. : |
354161 |
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Report Date : |
19.12.2015 |
IDENTIFICATION DETAILS
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Name : |
REITMANS (CANADA) LIMITED |
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Registered Office : |
250 Sauve Street W., Montreal, Quebec H3L 1Z2 |
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Country : |
Canada |
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Financials (as on) : |
2015 (Consolidated) |
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Date of Incorporation : |
1926 |
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Legal Form : |
Public Company (TSX = RET) |
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Line of Business : |
Subject operates as a ladies’ specialty apparel retailer in Canada. Its
stores offer tops, pants, capris, spring coats, skirts, shorts and skorts,
blazers and jackets, dresses, leggings, sports bras, and jeans; accessories,
including jewelry, purses and bags, tights, scarves, belts, hats, sunglasses,
and hair accessories; and gift cards. |
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No. of Employee : |
3,600 + part time |
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 : |
Slow but correct |
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Litigation : |
Exist |
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 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 high 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 merchandise exports each year. Canada is the US's largest foreign supplier of energy, including oil, gas, and electric power, and a top source of US uranium imports. Given its abundant 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 early intervention by the Bank of Canada and the financial sector's tradition of conservative lending practices and strong capitalization. Canada achieved marginal growth in 2010-14 and plans to balance the budget by 2015 despite the recent drop in oil prices. In addition, the country's petroleum sector is rapidly expanding, because Alberta's oil sands significantly boosted Canada's proven oil reserves. Canada now ranks third in the world in proved oil reserves behind Saudi Arabia and Venezuela and is the world’s fifth-largest oil producer.
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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 17, 2015, the Corporation had 50,327,866
shares
outstanding.
Market cap.: CAD
200,304,907=
Name of manager: Jeremy
H. REITMAN
Business:
Reitmans (Canada) Limited operates as a ladies’ specialty apparel
retailer in Canada. Its stores offer tops, pants, capris, spring coats, skirts,
shorts and skorts, blazers and jackets, dresses, leggings, sports bras, and
jeans; accessories, including jewelry, purses and bags, tights, scarves, belts,
hats, sunglasses, and hair accessories; and gift cards. The company operates
its stores under the Reitmans, Penningtons, Addition Elle, RW & CO., Thyme
Maternity, and Smart Set banners primarily in malls and retail power centers.
It also operates 21 Thyme Maternity shop-in-shop boutiques in Babies 'R' Us
locations in Canada, as well as provides access to e-commerce Website shopping.
As of January 31, 2015, it operated 823 stores consisting of 341
Reitmans, 139 Penningtons, 105 Addition Elle, 76 RW & CO., 68 Thyme
Maternity, and 94 Smart Set stores.
The company also operates an e-commerce Web site.
The company was founded in 1926 and is based in Montreal, Canada.
Staff: 3,600 + part time
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:
CDS & CO.
25 The Esplanade, Station A, Toronto Ontario M5W1G5 Canada
2nd shareholder:
DANAMIS INVESMENTS COMPANY
1959 Upper Water Street, Ste 900, Halifax, Nova Scotia B3J 3N2 – 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 December 3, 2015, Reitmans Canada Ltd. announced unaudited
consolidated earnings results for the third quarter and nine months ended
October 31, 2015.
For the quarter, the company reported sales of CAD 240,270,000 compared
to CAD 238,295,000 for the same period of last year. Results from operating
activities were CAD 2,997,000 compared to CAD 14,076,000 for the same period of
last year. Earnings before income taxes were CAD 22,000 compared to CAD
16,228,000 for the same period of last year. net loss was CAD 269,000 compared
to net earnings of CAD 12,866,000 for the same period of last year. Basic and
diluted earnings per share were CAD 0.00 compared to CAD 0.20 a year ago.
Adjusted EBITDA was CAD 15.3 million compared to CAD 31.1 million for the same
period of last year. Net cash used in operating activities were CAD 5,784,000
compared to net cash flows from operating activities of CAD 17,392,000 for the
same period of last year. Additions to property and equipment and intangible
assets were CAD 8,293,000 compared to CAD 9,412,000 for the same period of last
year.
For the nine months, the company reported sales of CAD 694,999,000
compared to CAD 703,099,000 for the same period of last year. Loss from
operating activities were CAD 4,484,000 compared to results from operating
activities of CAD 8,353,000 for the same period of last year. Loss before
income taxes were CAD 9,386,000 compared to earnings before income taxes of CAD
11,291,000 for the same period of last year. net loss was CAD 8,162,000
compared to net income of CAD 9,008,000 for the same period of last year. Basic
and diluted loss per share were CAD 0.13 compared to basic and diluted earnings
per share of CAD 0.14 for the same period of last year. Adjusted EBITDA was CAD
34.9 million compared to CAD 50.7 million for the same period of last year. Net
cash used in operating activities were CAD 1,808,000 compared to net cash flows
from operating activities of CAD 22,734,000 for the same period of last year.
Additions to property and equipment and intangible assets were CAD 27,519,000
compared to CAD 22,191,000 for the same period of last year. The net loss was
primarily attributable to reduced gross margins and a $10.7 million loss (on a pre-tax basis) due to a change in the fair value of marketable
securities.
On attachments:
- 10K 2015 (fiscal year ending 01-31-2015)
- 3rd 10Q 2015
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
2015
High credit: CAD 100,000+
Now owing: 0
Past due: 0
Last purchase: October 2015
Line of business: Office supply
Paying status: On terms
Date reported: November 2015
High credit: CAD 10,000,000+
Now owing: 0
Past due: 0
Last purchase: October 2015
Line of business: Payroll
Paying status: As agreed
Date reported: November 2015
High credit: CAD 20,000+
Now owing: 0
Past due: 0
Last purchase: October 2015
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 5, 2015.
The risk is low.
Our opinion:
A business connection may
be conducted.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
Rs.66.42 |
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1 |
Rs.99.17 |
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Euro |
1 |
Rs.72.14 |
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USD |
1 |
Rs.66.31 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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AMT |
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Report Prepared by
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ANK |
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 |
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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.