| For the years ended December 31 ($ millions except where otherwise indicated) |
2007 | 2006 | 2005 | 2004 | 2003 |
|---|---|---|---|---|---|
Operating Results |
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| 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 |
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| 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 |
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| 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($) |
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| 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 |
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| 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 |
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(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.
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