Rona Inc. (RON.TO) reported that its second-quarter net earnings attributable to participating shares after the dividend on preferred shares declined to C$34.1 million from C$37.0 million in the year ago quarter. Earnings per share remained stable at C$0.28.
Earnings per share before unusual items rose 28.6% to C$0.36 from C$0.28 last year.
Consolidated revenues for second quarter 2012 rose to C$1,417.1 million, up C$47,1 million, or 3.4%, over the corresponding quarter in 2011. The increase stems from a 10.5% increase in sales in the Commercial and Professional Market Division, new store openings, the recruiting of new dealer-owners and higher same-store sales in the RONA network, particularly in distribution sales to affiliate dealers.
Analysts polled by Thomson Reuters expected the company to report earnings of C$0.37 per share on revenues of C$1.41 billion for the quarter. Analysts' estimates typically exclude special items.
Same-store sales for the RONA network as a whole (retail, commercial and distribution) thus grew 1% in the second quarter. The increase was due to an 11.4% increase in same-store distribution sales to affiliate dealers. Same-store sales in the retail and commercial segment were down 0.9% due to the mix of products sold and the more cautious approach by Canadian consumers as of the end of May.
RONA's Board declared a semi-annual dividend of C$0.07 per share on the Corporation's common shares. This dividend will be paid on September 25, 2012 to holders of record on September 10, 2012.
The company said it is confident that its New Realities, New Solutions plan will achieve the C$10 million increase in annualized EBITDA in 2012, as anticipated in February.
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