Sears Canada Inc. Announced Its Unaudited Fourth Quarter and Full-Year Results

Sears Canada Inc. announced its unaudited fourth quarter and full-year results. Total revenues for the 13-week period ended February 1, 2014 were $1,182.3 million versus $1,307.2 million for the 14-week period ended February 2, 2013, a decrease of 9.6%.  Same store sales for the quarter, including an adjustment for the extra week last year, decreased 6.4%.

Total revenues for the 52-week period ended February 1, 2014 were $3,991.8 million versus $4,346.5 million for the 53-week period ended February 2, 2013, a decrease of 8.2%.  Same store sales for the year, including an adjustment for the extra week last year, decreased 2.7%.

Net earnings for the 13-week fourth quarter this year were $373.7 million or $3.67 per share versus $39.9 million or 39 cents per share for the 14-week fourth quarter of the prior year.

Included in net earnings for the fourth quarter this year were pre-tax gains of $391.5 million related to early lease terminations and amendments, $66.3 million related to the sale of the Company's interest in certain real estate joint arrangements and $42.5 million related to amendments to post-retirement benefits.

Also included in net earnings were pre-tax transformation expenses of $51.2 million, related primarily to severance costs incurred during the quarter. In the fourth quarter last year, there were pre-tax gains of$8.6 million related to the sale of the Company's interest in a real estate joint arrangement and $21.1 million related to the settlement of certain post-retirement benefits.

There were also pre-tax transformation expenses of $12.6 millionrelated primarily to severance costs. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for the 13-week period ended February 1, 2014 was $18.0 million versus $67.5 million for the 14-week period ended February 2, 2013.

Net earnings for the year ended February 1, 2014 were $446.5 million or $4.38 per share versus $101.2 million or 99 cents per share for the 53-week period ended February 2, 2013. 

Included in net earnings this year were pre-tax gains of $577.2 million related to early lease terminations and amendments, $66.3 million related to the sale of the Company's interest in certain real estate joint arrangements, and $42.5 million related to amendments to post- retirement benefits.

Also included in net earnings were pre-tax transformation expenses of $72.9 million, related primarily to severance costs incurred during the year. Included in net earnings last year were pre-tax gains of $167.1 million related to early lease terminations and amendments, $8.6 million related to the sale of an interest in a joint arrangement, and $21.1 million related to the settlementof certain post-retirement benefits.