Indigo Reports Full Year Results, Strong Revenue Growth, Improved Profitability

Comparable Superstore Sales grow by 6.8% and Online Sales grow by 11.8%

TORONTO, May 26, 2015 /CNW/ - Indigo Books & Music Inc. (TSX: IDG), Canada's largest book, gift and specialty toy retailer reported revenue of $895.4 million for its fiscal year ended March 28, 2015. Total revenue increased by $27.7 million compared to the previous year despite operating eight fewer stores.

On a comparable store basis, Indigo and Chapters superstore revenue increased 6.8%, while Coles and Indigospirit small format store revenue increased 0.8%.  Sales from Indigo's online channel, indigo.ca, grew by 11.8%.

The core trade books business returned to growth despite having no major hit titles during the year. Additionally, Lifestyle, Paper and Toys experienced double-digit growth and the launch of American Girl during the year far exceeded expectations.

Commenting on the results, CEO Heather Reisman said, "We're pleased with our full year results which confirm we are moving out of transformation and into growth mode."

The Company reported a net loss for the year of $3.5 million compared to net loss of $31.0 million last year.  The improvement in earnings was driven by revenue growth and margin rate, lower operating expenses and lower tax expense.

Revenue for the fourth quarter was $186.2 million, up $1.9 million from the same quarter last year. Net loss for the quarter was $13.9 million compared to a net loss of $14.4 million last year. The improvement in earnings was a result of higher revenues, margin rate and lower operating expenses off-set by increased long-term incentive costs.

Analyst/Investor Call

Indigo will host a conference call for analysts and investors to review these results at 10 A.M. (Eastern Time) tomorrow, May 27, 2015.  The call can be accessed by dialling 416-764-8688 from within the Toronto area, or 1-888-390-0546 outside of Toronto. The eight digit participant code is 18223739. 

A playback of the call will also be available by telephone until 11:59 p.m. (ET) on Wednesday, June 3rd, 2015. The call playback can be accessed after 7:00 p.m. (ET) on Wednesday, May 27th, 2015, by dialing 416-764-8677 from within the Toronto area, or 1-888-390-0541 outside of Toronto.  The six-digit replay passcode number is 223739#.  The conference call transcript will be archived in the Investor Relations section of the Indigo website, www.indigo.ca.

Forward-Looking Statements

Statements contained in this news release that are not historical facts are forward-looking statements which involve risk and uncertainties that could cause results to differ materially from those expressed in the forward-looking statements. Among the key factors that could cause such differences are: general economic, market or business conditions in Canada; competitive actions by other companies; changes in laws or regulations; and other factors, many of which are beyond the control of the Company.

Non-IFRS Financial Measures

The Company prepares its consolidated financial statements in accordance with International Financial Reporting Standards ("IFRS"). In order to provide additional insight into the business, the Company has also provided non-IFRS data, including comparative store sales growth, in the press release above. This measure does not have a standardized meaning prescribed by IFRS and is therefore specific to Indigo and may not be comparable to similar measures presented by other companies. Comparative store sales growth is a key indicator used by the Company to measure performance against internal targets and prior period results. This measure is commonly used by financial analysts and investors to compare Indigo to other retailers. Comparable store sales are defined as sales generated by stores that have been open for more than 12 months on a 52-week basis.

About Indigo Books & Music Inc.

Indigo is a publicly traded Canadian company listed on the Toronto Stock Exchange (IDG). As the largest book, gift and specialty toy retailer in Canada, Indigo operates in all provinces under different banners including Indigo Books & Music; Indigo Books, Gifts, Kids; Indigospirit; Chapters; and Coles. The online channel, indigo.ca, offers a one-stop online shop with a robust selection of books, toys, home décor, stationery, and gifts.

Indigo founded the Indigo Love of Reading Foundation in 2004 to address the underfunding of public elementary school libraries. Every year the Indigo Love of Reading Foundation grants $1.5 million to 20 high-needs elementary schools so they can transform their libraries with the purchase of new books and education resources. To date, the Indigo Love of Reading Foundation has committed over $19.5 million to over 2000 schools through our signature programs.

To learn more about Indigo, please visit the Our Company section at indigo.ca.

SOURCE Indigo Books & Music Inc.

Related Links

http://www.indigo.ca