Five Year Summary

Consolidated Information – Continuing Operations(1)

           
For the years ended December 31
($ millions except where otherwise indicated)
2007  2006  2005  2004  2003 
 

Operating Results

         
Sales(5) 32,815  32,167  31,189  29,619  28,867 
Sales excluding the impact of tobacco sales and VIEs(2, 5) 31,346  30,361  29,120  27,865  27,033 
Adjusted EBITDA(2, 3) 2,079  2,324  2,549  2,519  2,418 
Operating income(3) 1,094  537  1,634  1,782  1,832 
Adjusted operating income(2, 3) 1,408  1,643  1,891  1,901  1,881 
Interest expense and other financing charges(4) 165  253  187  438  266 
Net earnings from continuing operations 563  110  716  606  807 
 

Financial Position

         
Working capital 832  995  538  177  208 
Fixed assets 8,960  9,219  8,916  8,256  7,665 
Goodwill 1,833  2,055  2,886  2,957  2,993 
Total assets 18,388  18,595  18,593  17,769  17,278 
Net debt(2) 4,914  5,231  5,433  5,895  5,497 
Shareholders’ equity 4,937  5,213  5,119  4,380  4,430 
 

Cash Flows

         
Cash flows from operating activities of continuing operations 1,673  1,452  1,812  1,576  1,294 
Free cash flow(2) 620  27  146  (134) (449)
Capital investment 722  1,121  1,358  1,425  1,502 
 

Per Common Share

($)
         
Basic net earnings from continuing operations 3.92  0.43  5.25  4.49  5.91 
Adjusted basic net earnings from continuing operations(2) 4.26  4.98  5.62  5.50  5.84 
Common dividend rate at year end 1.44  1.44  1.44  1.44  1.20 
Cash flows from operating activities of continuing operations 12.52  10.84  13.74  12.02  9.61 
Capital investment 5.59  8.69  10.53  11.06  11.39 
Book value 29.90  32.06  32.85  30.19  30.46 
Market value at year end 54.08  75.60  86.31  109.71  103.71 
 

Financial Ratios

         
Adjusted EBITDA margin (%)(2) 6.6  7.7  8.8  9.0  8.9 
Operating margin (%) 3.3  1.7  5.2  6.0  6.3 
Adjusted operating margin (%)(2) 4.5  5.4  6.5  6.8  7.0 
Return on average total assets (%)(2) 6.7  3.2  10.0  11.5  12.4 
Return on average common shareholders’ equity (%) 12.7  1.3  16.7  14.8  20.0 
Interest coverage 5.9  2.0  7.9  3.9  6.1 
Net debt (excluding Exchangeable Debentures)(2) to equity 0.96  0.96  1.02  1.26  1.16 
Cash flows from operating activities of continuing operations to net debt (2) 0.34  0.28  0.33  0.27  0.24 
Price/net earnings from continuing operations ratio at year end 13.8  175.8  16.4  24.4  17.5 
Market/book ratio at year end 1.8  2.4  2.6  3.6  3.4 
 
(1) For financial definitions and ratios refer to the Glossary.
(2) See Non-GAAP Financial Measures (PDF, 70 KB).
(3) 2007 includes restructuring and other charges of $227 (2006 - $90) comprised of a $5 (2006 - $46) charge recognized by Weston Foods and a $222 (2006 - $44) charge recognized by Loblaw (see note 4 to the consolidated financial statements). In addition, 2006 includes the Loblaw goodwill impairment charge of $800 (see note 3 to the consolidated financial statements).
(4) 2007 includes non-cash income of $141 (2006 - $73) related to the fair value adjustment of Weston’s forward sale agreement for 9.6 million Loblaw common shares (see note 6 to the consolidated financial statements).
(5) During 2006, the Company implemented Emerging Issues Committee Abstract 156, “Accounting by a Vendor for Consideration Given to a Customer (Including a Reseller of the Vendor’s Products)” on a retroactive basis. Accordingly certain Loblaw sales incentives paid to independent franchisees, associates and independent accounts for prior years have been reclassified between sales and cost of sales, selling and administrative expenses.
(6) Certain prior years’ information was reclassified to conform with the current year’s presentation.