John Molson School of Business, Concordia University ACCO 310 Financial e!

ortin" #

Annual e!ort $ro%ect $resented to $rofessor Jonathan Schacter

Le Chteau Inc. Company Analysis and Investment Recommendation

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3AB41 OF CO63163S

$A(1 #ntroduction 7

Stoc8 Mar8et Analysis

atio Analysis

Co//on Si9e :;ertical< Analysis

3rend :=ori9ontal< Analysis

Conclusion > eco//endation ?

4#S3 OF A$$162#C1S A$$162#7 A A$$162#7 B -|$a"e 7 7

A$$162#7 C

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#63 O2UC3#O6 4e Chateau @as founded in 1*5* &y =ershel Se"al :Fundin" Universe, @e&<A 3he chain started out as /enBs clothin" store located in do@nto@n MontrealA 2ue to the &usinessB initial success, Se"al @as a&le to i/!le/ent three ne@ sho!sA =o@ever, these ne@ locations @ere un!rofita&leC Se"al @as forced to close do@n the retail stores leavin" only the ori"inal one o!erationalA A fe@ years later, 4e Chateau failed to "enerate !rofits and as a conseDuence, it @as near &an8ru!tcyA 3ryin" to save his &usiness, Se"al shifted to a /ore youth)oriented 1uro!ean fashion conce!t, and &y 1*,-, Se"al /ana"ed to introduce a @o/enBs lineA Further/ore, as the 1uro!ean trend "re@ !o!ular in Canada in the /id)1*.0s, 4e Chateau @as develo!ed into a s/all chain @ith over ten retail outletsA By the end of the decade, 4e Chateau counted /ore than 50 stores country @ideA 3he co/!any /aintained steady !rofits until 1*.., @hen it first recorded a lossA #n s!ite of this financial do@nfall, Se"al @as deter/ined to "et his co/!any &ac8 on trac8A As a result, in 1*03, 4e Chateau @ent !u&lic on the 3oronto Stoc8 1'chan"e :3S7< and raised around .A3 /illion in its #$OA By the early 1**0s, 4e ChEteau counted over 1,0 stores and focused on e'!andin" the &rand na/e @ith the hottest fashion, accessories and foot@earA Fhat /a8es 4e Chateau so !articular is that it sells al/ost e'clusively its o@n &randin"A 3hou"h this s!ecialty retailer is very successful in Canada, it has &een una&le to co/!ete in the A/erican /ar8etA 3he only retail locations left in the UASAAA fro/ their 6orth A/erican e'!ansion are t@o stores in 6e@ Gor8A 3he econo/ic recession in -000 "reatly affected 4e ChateauBs financial !erfor/anceA 3he increase in inventory, chan"es in !roduct /i' are t@o i/!ortant challen"es that are &ein" addressed &y current C1O, Jane SilverstoneA Strate"ic !lans include Duic8er identification and res!onse to chan"in" fashions trends, and ne@ !roduct develo!/ent that /a8es use of vertical inte"rated o!erationsA Further/ore, 4e chateau is currently tryin" to shift its tar"et /ar8et &ac8 to a /ore /ature clientele all @hile i/!rovin" DualityA #n order to &etter focus on /eetin" &otto/ line tar"ets, !lans of re) e'!ansion across the &order have &een a&andonedA

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3oday, 4e chateau is a reno@ned s!ecialty retailer and /anufacturer, 8no@n for its conte/!orary fashion and value !ricin"A Fith over -+1 locations in Canada, t@o in the UASA and seven store licenses in the Middle 1ast, 4e Chateau is undenia&ly one of CanadaBs /ain fashion retailersA #t hel!s contri&ute to CanadaBs econo/y &y /anufacturin" over 35H of the Co/!anyBs a!!arel in a Canadian !roduction facilityA Additionally, 4e ChEteau co/!etes @ith co/!ara&le !layers in the industry such as =>M, Iara, 4aura Canada, eit/ans and Jaco&A

Stock Market Analysis For the !ast -* years, 4e Chateau has &een listed on the 3oronto Stoc8 1'chan"e :3S7<, tradin" under the tic8er C3UAA A As of July 1, -01-, 4e Chateau had -0,-30,000 shares outstandin" tradin" at J1A3* !er shareA Currently, the stoc8 is tradin" at J-A10 !er shareA #n the !ast five years, the co/!anyBs share !rice has fluctuated &et@een J1A03 and J1,A,+A An invest/ent of J100 in co//on shares five years a"o @ould only &e @orth J1-A*- today, i"norin" dividendsA Further/ore, 4e Chateau has recently sto!!ed !ayin" dividends to co//on shareholders for the first ti/e since -001, a trou&lin" si"n to investorsA : efer to A!!endi' A< Stoc8 !rice for C3UAA over the last five years

SourceK (oo"le Finance 3he a&ove "ra!h sho@s a clear decline in 4e ChateauBs stoc8 !rice durin" recent years, startin" in -000, ri"ht after the recession hit CanadaA 2urin" the recession, the co/!anyBs share !rice decreased &y nearly a half fro/ J11 to J, in a !eriod of 3 /onthsA 5|$a"e

Althou"h hard hit &y the recession, 4e Chateau !ut in !lace a !lan to re/ain in the /ar8etK reduce costs, carefully @atch inventory levels, and e'!and their tar"et /ar8etA A Duic8 loo8 at the financial state/ents sho@s that costs and inventory levels are risin", and sales are fallin"A Althou"h 4e Chateau re/ains active, its share !rice continues to dro! and it is currently tradin" near a 5 year lo@A Additionally, 4e Chateau is su&%ect to the various ris8s ende/ic in the a!!arel industry, as outlined in their financial state/entsA $erha!s the /ost si"nificant of these ris8s is the ra!idly chan"in" fashion trends, @hich are often influenced &y e'ternal factors over @hich 4e Chateau has no controlA Seasonality and /erchandise o&solescence are other i/!ortant ris8s faced &y any co/!any in the industryA 6u/erous varia&les affectin" the econo/ic environ/ent of the co/!any such as econo/ic "ro@th, inflation, e'chan"e rates and levels of ta'ation have the !otential to i/!act &oth consu/er confidence and s!endin"A 3he resultin" da/a"e to 4e ChateauBs sales and its a&ility to !roduce /erchandise at a co/!etitive cost, @ould &e reflected in their co//on share !riceA Other ris8s include fluctuatin" CanadaLUASA e'chan"e rates, as the co/!any o!erates t@o stores in the UASAAAC and lease rates, as the co/!any leases /ost of its retail and @arehousin" s!aceA Althou"h /any of these ris8s are &eyond the co/!anyBs control, /ana"e/ent is a@are of their e'istence and outlines several ste!s it has ta8en to reduce their ne"ative i/!actA Ratio analysis #nvestors and creditors use certain financial ratios to &etter evaluate a co/!anyBs !erfor/ance, and to /a8e /ore infor/ed resource allocation decisionsA Once calculated, these ratios can &e co/!ared to industry avera"es or even other co/!etitorsA Belo@, a co/!arison of certain ratios @as /ade to &oth the industry avera"e and to one of 4e ChEteauMs /a%or co/!etitorsK eit/ans Canada 4i/itedA #t is essential to note that eit/ans Canada 4i/ited is also listed on the 3S7 and is one of the lar"est !u&licly) o@ned retail co/!anies in CanadaA Further/ore, it o!erates *,5 stores under seven different &anners, all consistin" of ladiesB clothin" : eit/ans, @e&<A ConseDuently, 4e ChateauBs !osition /ay &e unfavora&le @hen doin" a Duantitative analysis since ,|$a"e

eit/ans &enefits fro/ a /uch lar"er econo/y of scaleA An analysis of the co/!anyMs /ost recent &alance sheet fi"ures @ill allo@ for "reater understandin" of the co/!anyBs !osition in ter/s of liDuidity, solvency, and financial fle'i&ilityA 3he ratios used to assess these !erfor/ance /easures are the current ratio, Duic8 ratio, inventory turnover, assets turnover and 1$SA 4iDuidity ratios /easure the short)ter/ a&ility of a co/!any to !ay short)ter/ de&t o&li"ationsA (enerally, @hen liDuid assets e'ceed short)ter/ lia&ilities, this indicates that the co/!any can !ay de&ts that are co/in" due and still have enou"h to fund their day to day o!erationsA On the other hand, @hen current assets !rovide lo@ covera"e rate, this si"nals to investors that the co/!any not only has difficulties runnin" its o!erations &ut @ill also have trou&le /eetin" its u!co/in" de&ts o&li"ations :4oth, @e&<A One such liDuidity ratio, the current ratio, is co/!uted &y dividin" current assets &y current lia&ilitiesA #n -01-, 4e Chateau has a current ratio of 3A1C @hich /eans that for every dollar of current lia&ilities, it has 3A1 dollars of current assets to cover that de&tA 3hou"h this nu/&er see/s i/!ressive, it is s/aller than eit/ansB current ratio of 3A*A Moreover, the a!!arel stores avera"e industry score is 3A,A 3his /eans that althou"h 4e ChateauBs current ratio has i/!roved fro/ -A* the !revious year, it /ust strive to /aintain this !ro"ress &y either increasin" current assets or decreasin" current lia&ilities in order to re/ain co/!etitive @ithin the industryA Another relevant liDuidity ratio is the Duic8 ratio, also 8no@n as the acid)test ratioA 3his indicator refines the current ratio &y e'cludin" those current assets that can &e /ore difficult to Duic8ly convert into cash, such as inventoryA As a result, the Duic8 ratio is co/!uted &y dividin" cash and eDuivalent, short)ter/ invest/ents and account receiva&les &y current lia&ilitiesA 4e ChateauBs Duic8 ratio is 0A3, @ell &elo@ &oth eit/ans and industry avera"e, @hich are -A, and -A5 res!ectivelyA 3he fact that 4e ChateauBs current ratio is si"nificantly hi"her than its Duic8 ratio is a clear indication that inventory is a si"nificant co/!onent of the co/!anyBs current assetsA 3herefore, investors /ay &e /ore attracted to eit/ans not only &ecause it has the a&ility to convert .|$a"e

its current assets to cash @ithout de!endin" on inventory, &ut also &ecause inventory is e'!osed to o&solescence and difficulties to sellA Fhile liDuidity ratios are used in analy9in" a co/!anyMs a&ility to !ay off de&t, activity ratios /easure ho@ Duic8ly a &usinessB receiva&les are collected and ho@ Duic8ly inventories are sold :Nieso et al -55<A #n the a!!arel store industry, sales re!resents **A1H of total o!eratin" revenue @hile cost of "oods sold re!resents 53A-H of total e'!enses :#ndustry Canada, @e&<A 3herefore, inventory !lays a /a%or role in the daily o!erations of a!!arel storesA 3he inventory turnover ratio /easures ho@ /any ti/es inventory is sold durin" an accountin" !eriod :Ni//el et alA, -+.<A 3his ratio is hi"hly relevant for the a!!arel /erchandisin" industry &ecause fashion trends chan"e al/ost continuously and inventory is re!laced accordin" to the seasonsA 3herefore, inventory turnover is closely /onitored &y &oth /ana"ers and !otential investorsA #n recent years, 4e Chateau e'!erienced difficulties in sellin" its inventoryA 4e ChateauBs inventory and de&t continued to &uild u! @hile sales declined durin" the econo/ic do@nfallA Accordin" to 6eil 4insdell, an analyst at ;ersant $artners, OAt current levels, there is enou"h inventory Pat 4e ChateauQ for a yearBs @orth of salesR :=ade8el, @e&<A 4e ChateauBs inventory turnover rate sho@s a result of 0A* ti/esA #n other @ords, it sells only *0H of its inventory in a yearA 3his see/s !retty /ediocre in contrast &oth the industry avera"e of 3A3 ti/es and eit/ansB ratio of 3A, ti/esA 3,5 days divided &y the inventory turnover results in the avera"e days in inventoryA For 4e Chateau, it ta8es a!!ro'i/ately +0, days to sell its inventory, @hich is a&out a year and a /onthC a&out four ti/es /ore than eit/ansB 10- days, and @ell a&ove the industryBs avera"e of 111 daysA #n addition to inventory turnover, it is also i/!ortant to evaluate asset turnoverA Merchandisin" co/!anies rely heavily on sales to earn revenue and the asset turnover ratio is a stron" indicator of ho@ efficiently /ana"e/ent uses total assets to "enerate sales :Nieso et alA, -010<A 4e ChateauBs asset turnover ratio is 1A3 @hich /eans that for every dollar invested in total assets J1A30 @as received in sales revenueA 3he co/!anyMs !erfor/ance is inferior to eit/ansB 1A, and the industryBs avera"e of 1A5, indicatin" inefficiency in "eneratin" sales co/!ared to its co/!etitorsA 0|$a"e

Another co//on investor /easure is the earnin"s !er share, or 1$S, @hich is the net earnin"s earned for each co//on sharesA 1$S is calculated &y dividin" net earnin"s availa&le to co//on shareholders &y the @ei"hted)avera"e nu/&er of outstandin" shares :Ni//el et alA -00*<A For 4e Chateau, 1$S dis!lays a net loss of J0A1 !er share @ith -+,.0*,000 shares outstandin"A 1arnin"s !er share are "enerally not co/!ara&le &et@een co/!anies due to differin" ca!ital structuresA : efer to A!!endi' A< #n su/, it is i/!ortant to 8ee! in /ind that @hile so/e financial ratios are relevant on their o@n, it is al@ays /ore /eanin"ful to co/!are this infor/ation to intraco/!any, interco/!any or industry avera"es :Ni//el et alA -00*<A 4e Chateau current financial !osition see/s unattractive as an invest/ent @hen loo8in" at their financial ratiosA As /entioned in the introduction, althou"h that the co/!any is in a !eriod of strate"ic transition and recession recovery, it see/s that it doesnBt have the necessary tools to &e co/!etitive in the /ar8etA Common Size ( ertical! Analysis ;ertical analysis is a /ethod of financial analysis that co/!ares certain fi"ures @ithin the sa/e accountin" !eriodA Usually, the results are e'!ressed as a !ercenta"e of an i/!ortant financial state/ent ite/A For instance, inco/e state/ent ite/s can &e /easured as a !ercenta"e of net sales, and &alance sheet ite/s can &e /easured as a !ercenta"e of total assetsA 3he advanta"e of this ty!e of analysis is that it /a8es co/!arisons of fir/s of different si9es /uch /ore /eanin"ful :(i&son, 100<A $erha!s the /ost alar/in" ite/ on the -01- inco/e state/ent is the net loss of J-A30, /illion re!orted in -01-, co/!ared to the net earnin"s of J1*A55. /illion in -011A Fro/ -011 to -01-, net sales decreased &y J1. /illion, indicatin" that 4e Chateau is havin" difficulties sellin" its /erchandiseA 3o further co/!ound this issue, cost of "oods sold increased &y J13 /illion over the last year and no@ e'ceeds net salesA #n -01CO(S a/ounts to 100A+H of sales, @hereas the !revious year it accounted for only *|$a"e

*1A0,H of salesA 3his /eans that 4e Chateau is accu/ulatin" /ore costs for the sale of fe@er "oodsA 3he co/&ined increase in costs and dro! in sales has resulted in a "ross loss durin" -01-, even &efore all other e'!enses have &een deductedA After all other e'!enses and revenues, the &otto/ line in -01- @as a loss of J-A30, /illion, or )0A.0H of salesA #n other @ords, for every dollar of sales 4e Chateau /a8es, it is losin" an additional 0A.0 centsA 3his is even /ore trou&lin" in li"ht of last yearBs results, @hen net earnin"s of J1*A5 /illion re!resented ,A1-H of salesA 3his su""ests this yearBs increase in sales costs and decrease in sales is contri&utin" to a serious do@n@ard trend in 4e ChateauBs &otto/ lineA =o@ever, 4e Chateau can &eco/e !rofita&le a"ain &y &etter /ana"in" its cost of "oods sold and @or8in" to increase salesA : efer to A!!endi' B< 3he /ost si"nificant chan"e on the &alance sheet is undou&tedly the chan"e in inventories, @hich re!resents 51H of total assets in -01- co/!ared to only a&out half that a/ount, -,H of total assets, in -010A 3his /i"ht &e e'!lained &y the dro! in sales, @hich @ould have resulted in inventories &ein" left in @arehouses lon"erA 3he other su&stantial ite/ on the &alance sheet is !ro!erty, !lant and eDui!/ent, @hich accounts for a&out 3.H of total assets in years -010 and -011, and +0H of total assets in -01-A 3his indicates that !ro!erty, !lant and eDui!/ent have re/ained rather sta&le over the last three yearsA Current lia&ilities have also re/ained fairly sta&le, ho@ever non)current lia&ilities increased fro/ around 1.H to -0H of total assets, !erha!s indicatin" that 4e Chateau too8 out a lon")ter/ loan in the last year to hel! alleviate so/e of the !ressure caused &y its ne"ative net earnin"sA For the shareholderBs eDuity fi"ure, a hi"her !ercenta"e indicates /ore assets are covered &y o@nershi! and less &y de&tA 3his fi"ure has &een slo@ly sli!!in", fro/ ,3H to ,1H over the !ast three yearsA =o@ever, 4e Chateau does not have liDuidity issues as its current assets, 5,H of total assets, can cover its current lia&ilities @hich are only 10H of total assets, and the sa/e can &e said for the !ast three yearsA #t /ust also &e noted that 4e Chateau is &eco/in" decreasin"ly solvent in each year analysed, as the !ercenta"e of total assets covered &y total lia&ilities increasesA 3his !ercenta"e, o&tained &y dividin" total lia&ilities &y total assets, is si/!ly the de&ts to total assets ratio e'!ressed as a !ercenta"eA : efer to A!!endi' C<A

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A co/!any @hoBs CO(S out@ei"h sales, @here over 50H of total assets are accounted for &y inventory at ris8 of o&solescence and @hose solvency has &een steadily declinin", /ay not &e attractive to !otential investorsA "rend (#orizontal! Analysis 3o identify the relative chan"es fro/ one year to another, a hori9ontal analysis, also called a trend analysis, can &e done &y usin" the dollar fi"ures to sho@ the variations &et@een the yearsA #te/s in the financial state/ents are e'!ressed as !ercent a/ounts of their value at a chosen &ase year, usually the !revious yearA #n this /anner, it is easy to see yearly !ercenta"e chan"e for each ite/A Fhen loo8in" at 4e ChEteau consolidated state/ent of earnin"s, a !otential investor @ill have a fair !icture of their !rofita&ility durin" a certain !eriod of ti/eA For instance, 4e ChEteauBs net sales have decreased &y ,A*H, 0A0H and 5A1H each year in -00*, -010 and -011, res!ectivelyA 3his sho@s that 4e ChEteauBs sales are consistently d@indlin" fro/ one year to the ne't since -00*A 1ven thou"h the co/!any o!ened , ne@ stores throu"hout -011, the re!eated dro! in sales /ay &e attri&uted to the hi"hly co/!etitive environ/ent characteristic of the fashion industryA Further/ore, the cost of sales fro/ -000 to -00* declined &y +A1H, @hich could &e e'!lained &y the decrease in sales durin" that yearA Fhile sales revenue fell further in -010 and -011, !erha!s sur!risin"ly the cost of sales rose &y +A,.H and 3A51H in -010 and -011, res!ectivelyA 3his su""ests that, over the last t@o years, /ana"e/ent has stru""led @ith their inventory and !roduct costsA 3he last i/!ortant ite/ to notice on the state/ent of earnin"s is the co/!anyBs net earnin"sA 2ue to di/inishin" sales and sur"in" cost of sales, 4e ChEteauBs net earnin"s have !lu//eted &y --A0H, 3+A5H and 11-A-H in the years -00*, -010 and -011, res!ectivelyA #n addition, one of the /ost follo@ed ratio &y investors, the earnin"s !er share, shared the sa/e unfavoura&le trendA #t decreased &y -1A-H, 35A-5H and 11-A-H in -00*, -010 and -011, res!ectivelyA : efer to A!!endi' 2<A

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Fhen analysin" the hori9ontal fluctuations of the accounts !ertainin" to the consolidated &alance sheet, one can analyse the chan"es of the co/!anyBs financial !osition at a "iven !oint in ti/eA 4oo8in" at the total current assets, it increased &y 5A.H, *A1H -00* and -010, res!ectivelyA 3he increase in -00* is /ainly attri&uted to a lar"e increase in Cash > Cash 1Duivalent @hich increased &y 133HA #n -010, the lar"e increase in inco/e ta'es refunda&le of 1-+A0H contri&uted to the increase in the total current assetA =o@ever, -011 sho@ed a decrease of 10H in total current assetA 3he rede/!tion of the entire short ter/ invest/ents contri&uted to the decrease in Current Asset durin" -011A #n addition to this, the decrease of the cash and cash eDuivalent &y 5*H /ay su""est that the co/!any utili9ed so/e of its liDuidity to !ro!el its tou"h e'!ansionA #n ter/s of current lia&ilities, it increased in -00* and -010 &y 5A1H and 15A-HA 3his increased @as !ri/arily due to the current !ortion of the lon" ter/ de&t that au"/ented &y 3+A+H and 35A5H in -00* and -010, res!ectivelyA =o@ever, the current lia&ilities in -011 d@indled &y 1.H @hich could &e attri&uted to the trade !aya&le @hich di/inished &y 13A*HA 3his decrease in current lia&ilities has a !ositive effect on 4e ChEteau since the co/!any had fe@er o&li"ations to fulfil in -011A Fhen loo8in" at the co/!anyBs total lia&ilities, it increased &y 1+A0H, ,A5H and 0A-H in -00*, -010 and -011, res!ectivelyA 3he au"/entin" levera"e of the co/!any /ay ste/ fro/ ne@ loans that the co/!anies undertoo8 to hel! o!enin" ne@ storesA Althou"h the shareholderBs eDuity increased &y 5A5H in -00* and 3A,H in -010, it reduced &y 0A1H in -011A 3he cause &ein" that the retained earnin"s d@indled &y 11A-H in -011 as the net earnin"s the co/!any "enerated durin" that year @ere ne"ativeA 3his /ay su""est that 4e ChEteauBs financial !osition /ay &e @ea8enin"A (See to Appendi$ A!. #nvestors /ay @ant to carefully consider @hether or not they &elieve recovery fro/ these circu/stances is li8elyA Conclusion

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A$$162#7 A) Balance Sheet =ori9ontal Analysis

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Balance Sheet Balance Sheet as of: Jan-31-2010 Current Assets Cash and Cash Equivalents 133.3% Short-term Investments -20.6% !""ounts #e"eiva$les -4%.%% In"ome& ta'es #e(unda$le Inventories 13.4% )re*aid E'*enses 6%.1% +erivative ,inan"ial Instruments -96.1% Total Current Assets 5.7% on Current Assets )ro*erties 1.%% Intan-i$le !ssets 1.6% Total Assets 8.7% Current #$a%$l$t$es .rade and /ther )a0a$les -10.5% Current )ortion o( 1on--term +e$t 34.4% +e(erred #evenue +ividend )a0a$le 1.3% Current )ortion o( )rovisions Total Current #$a%$l$t$es 5.1% on Current #$a%$l$t$es 1on--term +e$t 13.1% ,uture In"ome .a'es -2%. % )rovisions +e(erred 1ease Credit 59.1% Total on Current #$a%$l$t$es 2 .%% Total #$a%$l$t$es 14.%% Sharehol&ers' ()u$t* Common Sto"2 - )ar 3alue 10.%% !dditional )aid in Ca*ital -12.2% #etained Earnin-s 5.4% !""umulated /ther Com*rehensive In"ome 41oss5 -96.2% Total Sharehol&ers ()u$t* 5.5% Total #$a%$l$t$es + Sharehol&ers ()u$t* %. %

Jan-29-2011 -24.6% -32. % -0.6% 126.5% 49.9% 23.4% 9.1% 6.6% 10 .4% !."% 11.5% 35.5% -3.6% 1.0% -4. % 15.2% -5.6% 25. % - 3.1% 3.3% -3.0% 6.5% 9.9% - .1% 2.0% -30 .5% 3.6% 4.6%

Jan-28-2012 -59.3% -100.0% -3.3% -41.1% 30.0% -3.1% -10.0% 2.4% 2.0% -5.0% -13.9% 2.5% -%.0% - 1. % -1 .0% 43.9% 3. % - 1.0% 1.1% 22.5% 0.2% 0.0% 16.1% -11.2% -210.%% -%.1% -5.0%

1+ | $ a " e

A$$162#7 B) #nco/e State/ent =ori9ontal Analysis

Income Statement ,or the ,$scal -er$o& (n&$n. Currency 0n$ts 1e2enues Sales Cost of Sales an& (34enses Cost o( Sales +e*re"iation and !morti7ation 8rite o(( o( ,i'ed !ssets Interest 1esult fro/ o4erat$n. act$2$t$es ,inan"e Costs Interest In"ome ,inan"e In"ome (arn$n.s %efore Ta3es In"ome .a' #e"over0 et (arn$n.s 6#oss7 et (arn$n.s 6#oss7 4er share 9asi" +iluted 12 / onths 12 / onths Jan-31-2009 Jan-30-2010 CAD CAD Thousan&s Thousan&s 3456614.0 42 16119.05 4166 05.05 45%5.05 416 9%.05 55640 .0 26299.0 57570".0 41960%5.05 385"21.1 3216 33.0 -6.91% 42606010.05 -4.10% 41 6216.05 3.06% 453%.05 -8.03% 416503.05 426466.0 -23.36% %0.0 -66.07% !352!".0 -25.06% 4136409.05 -29.74% 29583".7 -22.75% 1.23 1.22 -21.29% 12 / onths Jan-29-2011 CAD Thousan&s 3196039.0 -0.84% 42 26163.05 4.67% 41 6595.05 2.20% 4965.05 79.37% 416590.05 266 26.0 -37.06% 4165%%.05 616.0 2755"".0 -36.26% 4%6009.05 -40.27% 19555"." -34.45% 0. 9 0. 9 -35.25% 12 / onths Jan-28-2012 CAD Thousan&s 3026 0 .0 -5.12% 42%16 24.05 3.51% 4196364.05 10.05% 4%46.05 -12.33% 4169 0.05 41619 .05 -104.48% 4169 4.05 24.31% 21 .0 -64.77% 625982.07 -110.82% 596.0 -107.44% 625387.17 -112.21% 40.15 40.15 -112.66%

1.56 1.55

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