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Press release from Marketwire

The Jean Coutu Group: Fourth Quarter And Fiscal Year 2010 Results

Wednesday, April 28, 2010

The Jean Coutu Group: Fourth Quarter And Fiscal Year 2010 Results07:01 EDT Wednesday, April 28, 2010 LONGUEUIL, QUEBEC--(Marketwire - April 28, 2010) - The Jean Coutu Group (PJC) Inc. (TSX:PJC.A) -- Reports operating income before amortization ("OIBA") of $71.2 million for the fourth quarter, an increase of 15.8% compared with the fourth quarter of fiscal year 2009. -- Net earnings per share amounted to $0.18 compared with a net loss per share of $3.11 during the fourth quarter of fiscal year 2009. The Jean Coutu Group (PJC) Inc. (TSX:PJC.A) (the "Company" or the "Jean Coutu Group") reported its financial results today for the fourth quarter and fiscal year ended February 27, 2010. SUMMARY OF RESULTS (Unaudited, in millions of Canadian dollars, except per share amounts) --------------------------------------------------------------------------- Q4-2010 Q4-2009 Fiscal Fiscal year 2010 year 2009 --------------------------------------------------------------------------- $ $ $ $ Revenues 637.0 607.2 2,543.1 2,369.3 Operating income before amortization ("OIBA") 71.2 61.5 268.8 232.8 Share of loss in Rite Aid, a company subject to significant influence ("Rite Aid") - 768.8 55.2 1,327.0 Net earnings (loss) 42.8 (733.6) 112.6 (1,192.1) Per share 0.18 (3.11) 0.48 (4.92) Earnings before specific items and share of loss in Rite Aid 42.9 38.5 162.7 142.6 Per share 0.18 0.16 0.69 0.59 --------------------------------------------------------------------------- Highlights -- Revenues increased by 4.9% and OIBA increased by 15.8% during the fourth quarter of fiscal year 2010 compared with the same period last year. -- Earnings before specific items and share of loss in Rite Aid is $0.18 per share for the fourth quarter of fiscal year 2010, an increase of $0.02 per share compared with the fourth quarter of fiscal year 2009. -- During the fiscal year 2010, there were 22 store openings, including 5 relocations, in the PJC network of franchised stores. In addition, 41 stores were significantly renovated or expanded. -- 22.2% increase in the regular quarterly cash dividend, which has increased to $0.055 per share. Financial results "We are very satisfied with the results of the fourth quarter and fiscal year 2010. We successfully continued the implementation of our business plan, which resulted in a strong growth of the OIBA" said Mr. Francois J. Coutu, President and Chief Executive Officer." In the course of the next year, we will continue to build upon our position as a leader in pharmacy and we will keep striving to maintain our growth objectives."Revenues Revenues consist of sales plus other revenues derived from franchising activities in Canada. Merchandise sales to PJC franchisees through our distribution centres account for most of our sales.Revenues amounted to $637.0 million during the quarter ended February 27, 2010, compared with $607.2 million during the quarter ended February 28, 2009. This increase is attributable to the overall market growth and the expansion of the Jean Coutu Group network of franchised stores.Other revenues amounted to $63.3 million during the fourth quarter of fiscal year 2010 compared with $64.0 million during the fourth quarter of fiscal year 2009. This slight decrease of other revenues is mainly attributable to the increase of amortization of incentives paid to franchisees.OIBAOIBA increased by $9.7 million and amounted to $71.2 million for the fourth quarter of fiscal year 2010 compared with $61.5 million for the fourth quarter of fiscal year 2009. The increase in OIBA is mostly attributable to a strong operational performance in the franchising activities and of the subsidiary Pro Doc. Gross sales of Pro Doc products, net of intercompany's eliminations, amounted to $28.9 million in the fourth quarter of fiscal year 2010 compared with $14.1 million in the fourth quarter of fiscal year 2009. OIBA as a percentage of revenues ended the fourth quarter of fiscal year 2010 at 11.2% compared with 10.1% for the comparable period of the previous fiscal year.For the fiscal year 2010, OIBA increased by $36.0 million and amounted to $268.8 million compared with $232.8 million during the fiscal year 2009. OIBA as a percentage of revenues ended the fiscal year 2010 at 10.6% compared with 9.8% for the fiscal year 2009.Share of loss in Rite Aid, a company subject to significant influenceNo share of loss in Rite Aid was accounted in the Company's earnings during the fourth quarter of fiscal year 2010 compared with $768.8 million ($3.26 per share) during the fourth quarter of fiscal year 2009. This is a non-cash charge.During the fiscal year ended February 27, 2010, the Company's share of loss in Rite Aid exceeded the carrying value of its investment. As required by Canadian GAAP, the Company reduced the carrying value of its investment down to zero and ceased recording its share of loss in Rite Aid exceeding the carrying value of its investment, since the Company has not guaranteed obligations of Rite Aid and is not committed to provide it further financial support. For the quarter and the fiscal year ended February 27, 2010, the Company's unrecognized share of loss in Rite Aid amounted to $53.8 and $89.4 million respectively.The equity interest in Rite Aid represents an investment subject to significant influence, which is accounted for using the equity method. On February 27, 2010, the market value of equity interest in Rite Aid was US$383.0 million (February 28, 2009 - US$70.6 million).Net earnings (loss)For the quarter ended February 27, 2010, net earnings amounted to $42.8 million ($0.18 per share) compared with a net loss of $733.6 million ($3.11 per share) for the quarter ended February 28, 2009. Earnings before specific items and share of loss in Rite Aid amounted to $42.9 million ($0.18 per share) during the fourth quarter of fiscal year 2010 compared with $38.5 million ($0.16 per share) during the fourth quarter of the previous fiscal year. Earnings before specific items and share of loss in Rite Aid amounted to $162.7 million ($0.69 per share) during the fiscal year 2010 compared with $142.6 million ($0.59 per share) during the previous fiscal year.Information on the Jean Coutu Group network of franchised stores Within the franchising segment, the Company carries on the franchising activity under the banners of "PJC Jean Coutu", "PJC Clinique", "PJC Sante" and "PJC Sante Beaute", operates two distribution centres and coordinates several other services for the benefit of its franchisees.During the fourth quarter of fiscal year 2010, on a same-store basis, PJC network retail sales grew of 3.8%, pharmacy sales gained 4.8% and front-end sales increased by 2.2% compared with the same period last year. During the fourth quarter of fiscal year 2010, the sales of non-prescription drugs, which represented 9% of total retail sales, increased by 2.7%, whereas these sales had increased by 5.7% at the same period last year.During the fiscal year 2010, on a same-store basis, PJC network retail sales grew of 4.5%, pharmacy sales gained 5.7% and front-end sales increased by 2.8% compared with the same period last year. During the fiscal year 2010, the sales of non-prescription drugs, which represented 9% of total retail sales, increased by 8.1%, whereas these sales had increased by 4.1% at the same period last year. Retail sales increase reflects overall market growth and openings, renovations and relocations of PJC network of franchised stores. Furthermore, the consumers' cautiousness in view of the A(H1N1) flu contributed to the increase of the over-the-counter drug sales. --------------------------------------------------------------------------- Network performance (1) Fiscal year Fiscal year Q4-2010 Q4-2009 2010 2009 --------------------------------------------------------------------------- Retail sales (unaudited, in millions of dollars) $951.3 $898.8 $3,637.2 $3,400.5 --------------------------------------------------------------------------- Retail sales growth (in %) Total stores Total 5.8% 6.4% 7.0% 5.4% Pharmacy 6.7% 7.5% 8.3% 7.1% Front-end 4.4% 5.2% 5.1% 2.7% Same store Total 3.8% 4.2% 4.5% 3.8% Pharmacy 4.8% 4.9% 5.7% 5.4% Front-end 2.2% 3.0% 2.8% 1.2% --------------------------------------------------------------------------- (1) Franchised outlets' retail sales are not included in the Company's Consolidated Financial Statements PJC network of franchised stores development During the fiscal year 2010, there were 22 store openings, including 5 relocations, in the PJC network of franchised stores. In addition, 41 stores were significantly renovated or expanded.Dividend The Board of the Jean Coutu Group declared a quarterly dividend of $0.055 per share, which represents an increase of 22.2% over the dividend paid the previous quarter. This dividend will be payable on May 28, 2010, to all holders of Class A subordinate voting shares and holders of Class B shares listed in the Company's shareholder ledger as of May 14, 2010. This quarterly dividend represents $0.22 per share on an annual basis.Non-GAAP financial measures This press release contains certain financial measures that are not defined by the Canadian Generally Accepted Accounting Principles ("GAAP"). These measures have been reconciled with performance measures defined by Canadian GAAP in the related section of this press release.Strategies and outlook With its operations and financial flexibility, the Company is very well positioned to capitalize on the growth in the drugstore retail industry. Demographic trends are expected to contribute to growth in the consumption of prescription drugs and to the increased use of pharmaceuticals as the primary intervention in individual healthcare. Management believes that these trends will continue and that the Company will maintain its growth in revenues through differentiation and quality of offering and service levels to its network of franchised stores, with a focus on sales growth, its real estate program and operating efficiency.The management of the Company has been informed of the prescription drug reform proposed by the Minister of Health and Long-term Care in Ontario. Announced modifications include a reduction in the price of generic drugs as well as a decrease in the professional allowances paid to pharmacists by generic drug manufacturers. This reform has not yet been ratified by the Legislative Assembly of Ontario, and changes might be introduced before its adoption. Management does not believe that the proposed reform in Ontario will have a significant impact on the consolidated results of the Company.Furthermore, the management of the Company has not been informed of the Quebec Ministry of Health and Social Services' intention regarding its drug policy following the adoption of this reform in Ontario. If measures similar to those proposed in Ontario were to be implemented in Quebec, the Company's consolidated results could be impacted.Conference callFinancial analysts are invited to attend the fourth quarter and the fiscal year 2010 results conference call to be held on April 28, 2010, at 9:00 AM (ET). The toll free call-in number is 1 888-789-9572 - access code 6616240 followed by pound sign (#). Media and other interested individuals are invited to listen to the live or deferred broadcast on The Jean Coutu Group corporate website at www.jeancoutu.com. A full replay will also be available by dialling 514-861-2272 or toll free at 1 800-408-3053 until May 28, 2010. The access code is 3504635, followed by pound sign (#).Supporting documentation (Management's discussion and analysis and investor presentation) is available at www.jeancoutu.com using the investors' link. Readers may also access additional information and filings related to the Company using the following link to the www.sedar.com website.About The Jean Coutu GroupThe Jean Coutu Group is one of the most trusted names in Canadian pharmacy retailing. The Company operates a network of 370 franchised stores in Canada located in the provinces of Quebec, New Brunswick and Ontario under the banners of PJC Jean Coutu, PJC Clinique, PJC Sante and PJC Sante Beaute, and employs more than 17,000 people. Furthermore, as of December 2007, the Jean Coutu Group owns Pro Doc Ltd ("Pro Doc"), a Quebec-based subsidiary and manufacturer of generic drugs. The Company also holds a significant interest in Rite Aid Corporation ("Rite Aid") a national chain of drugstores in the United States with nearly 4,800 drugstores in 31 states and the District of Columbia. This press release contains forward-looking statements that involve risks and uncertainties, and which are based on the Company's current expectations, estimates, projections and assumptions made by the Jean Coutu Group in light of its experience and its perception of historical trends. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, costs, operating or financial results, are forward-looking statements. All statements other than statements of historical facts included in this MD&A, including statements regarding the prospects of the Company's industry and the Company's prospects, plans, financial position and business strategy may constitute forward-looking statements within the meaning of the Canadian securities legislation and regulations. Some of the forward-looking statements may be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "project", "could", "anticipate", "plan", "foresee", "believe" or "continue", the negatives of these terms, the variations of them or the use of other similar terms. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, it can give no assurance that these expectations will prove to have been correct. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. These statements do not reflect the potential impact of any non-recurring items or of any mergers, acquisitions, dispositions, asset write-downs or other transactions or charges that may be announced or that may occur after the date hereof. While the list below of cautionary statements is not exhaustive, some important factors that could affect our future operating results, financial position and cash flows and could cause our actual results to differ materially from those expressed in these forward-looking statements, namely changes in the legislation or the regulatory environment as it relates to the sale of prescription drugs and the pharmacy exercise, the success of the Company's business model, changes in laws and regulations, or in their interpretations, changes to tax regulations and accounting pronouncements, the cyclical and seasonal variations in the industry in which we operate, the intensity of competitive activity in the industry in which we operate, the supplier and brand reputations, our equity interest in Rite Aid Corporation ("Rite Aid"), our ability to attract and retain pharmacists, labour disruptions, including possibly strikes and labour protests, the accuracy of management's assumptions and other factors that are beyond our control.These and other factors could cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Investors and others are cautioned that undue reliance should not be placed on any forward-looking statements. For more information on the risks, uncertainties and assumptions that would cause the Company's actual results to differ from current expectations, please also refer to the Company's public filings available at www.sedar.com and www.jeancoutu.com. In particular, further details and descriptions of these and other factors are disclosed in the Company's Annual Information Form under "Risk Factors" and in the "Risks and uncertainties" section of the MD&A for the fiscal year ended February 27, 2010. We expressly disclaim any obligation or intention to update or revise any forward-looking statements, whether as a result of new information, future events or any other reason, unless required by the applicable securities laws. THE JEAN COUTU GROUP (PJC) INC. Consolidated statements of earnings 13 weeks 52 weeks For the periods ended February 27, 2010 and February 28, 2009 2010 2009 2010 2009 --------------------------------------------------------------------------- --------------------------------------------------------------------------- (unaudited, in millions of Canadian dollars, unless otherwise noted) $ $ $ $ Sales 573.7 543.2 2,298.4 2,131.9 Other revenues 63.3 64.0 244.7 237.4 --------------------------------------------------------------------------- 637.0 607.2 2,543.1 2,369.3 Operating expenses Cost of goods sold 513.9 493.9 2,068.9 1,940.3 General and operating expenses 55.4 54.2 218.1 203.6 Amortization of property and equipment 4.5 4.2 17.6 16.1 --------------------------------------------------------------------------- 573.8 552.3 2,304.6 2,160.0 --------------------------------------------------------------------------- Operating income 63.2 54.9 238.5 209.3 Financing expenses (revenues) 0.3 4.7 (4.2) 12.6 --------------------------------------------------------------------------- Earnings before the following items 62.9 50.2 242.7 196.7 Share of loss in Rite Aid, a company subject to significant influence - 768.8 55.2 1,327.0 Income taxes 20.1 15.0 74.9 61.8 --------------------------------------------------------------------------- Net earnings (loss) 42.8 (733.6) 112.6 (1,192.1) --------------------------------------------------------------------------- --------------------------------------------------------------------------- Basic and diluted earnings (loss) per share, in dollars 0.18 (3.11) 0.48 (4.92) --------------------------------------------------------------------------- --------------------------------------------------------------------------- Consolidated statements of comprehensive income 13 weeks 52 weeks For the periods ended February 27, 2010 and February 28, 2009 2010 2009 2010 2009 --------------------------------------------------------------------------- --------------------------------------------------------------------------- (unaudited, in millions of Canadian dollars) $ $ $ $ Net earnings (loss) 42.8 (733.6) 112.6 (1,192.1) Other comprehensive income Foreign currency translation adjustments - 23.8 (6.7) 282.0 Income taxes related to the above items (16.4) - (16.4) - --------------------------------------------------------------------------- --------------------------------------------------------------------------- (16.4) 23.8 (23.1) 282.0 --------------------------------------------------------------------------- Comprehensive income 26.4 (709.8) 89.5 (910.1) --------------------------------------------------------------------------- --------------------------------------------------------------------------- THE JEAN COUTU GROUP (PJC) INC. Consolidated statements of changes in shareholders' equity 13 weeks 52 weeks For the periods ended February 27, 2010 and February 28, 2009 2010 2009 2010 2009 --------------------------------------------------------------------------- --------------------------------------------------------------------------- (unaudited, in millions of Canadian dollars) $ $ $ $ Capital stock, beginning of period 650.4 648.1 648.1 715.4 Redemption of stock - - - (67.3) Options exercised 0.4 - 2.7 - --------------------------------------------------------------------------- Capital stock, end of period 650.8 648.1 650.8 648.1 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Contributed surplus, beginning of period 32.5 26.2 28.4 16.7 Stock-based compensation cost 0.2 0.2 0.8 1.0 Stock-based compensation in Rite Aid, a company subject to significant influence - 2.0 3.5 10.7 --------------------------------------------------------------------------- Contributed surplus, end of period 32.7 28.4 32.7 28.4 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Retained earnings (deficit), beginning of period (286.2) 418.9 (324.1) 930.8 Net earnings (loss) 42.8 (733.6) 112.6 (1,192.1) Dividends (10.6) (9.4) (42.5) (38.7) Excess of purchase price over carrying value of Class A subordinate voting shares acquired - - - (24.1) --------------------------------------------------------------------------- Deficit, end of period (254.0) (324.1) (254.0) (324.1) --------------------------------------------------------------------------- --------------------------------------------------------------------------- Accumulated other comprehensive income (loss), beginning of period 96.5 79.4 103.2 (178.8) Foreign currency translation adjustments (16.4) 23.8 (23.1) 282.0 --------------------------------------------------------------------------- Accumulated other comprehensive income, end of period 80.1 103.2 80.1 103.2 --------------------------------------------------------------------------- --------------------------------------------------------------------------- --------------------------------------------------------------------------- Total shareholders' equity 509.6 455.6 509.6 455.6 --------------------------------------------------------------------------- --------------------------------------------------------------------------- THE JEAN COUTU GROUP (PJC) INC. As at As at February 27 February 28, Consolidated balance sheets 2010 2009 --------------------------------------------------------------------------- (in millions of Canadian dollars) $ $ (unaudited) (audited) Assets Current assets Accounts receivable 194.1 183.6 Inventories 163.8 159.4 Prepaid expenses and others 8.8 6.2 --------------------------------------------------------------------------- 366.7 349.2 Investments 61.0 110.1 Property and equipment 394.6 366.2 Goodwill 36.0 36.0 Other long-term assets 126.6 152.9 --------------------------------------------------------------------------- 984.9 1,014.4 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Liabilities Current liabilities Bank overdraft 13.3 21.2 Accounts payable and accrued liabilities 195.2 195.8 Income taxes payable 36.1 36.4 Short-term portion of long-term debt - 5.9 --------------------------------------------------------------------------- 244.6 259.3 Long-term debt 199.9 269.8 Other long-term liabilities 30.8 29.7 --------------------------------------------------------------------------- 475.3 558.8 --------------------------------------------------------------------------- Shareholders' equity Capital stock 650.8 648.1 Contributed surplus 32.7 28.4 Deficit (254.0) (324.1) Accumulated other comprehensive income 80.1 103.2 --------------------------------------------------------------------------- (173.9) (220.9) --------------------------------------------------------------------------- 509.6 455.6 --------------------------------------------------------------------------- 984.9 1,014.4 --------------------------------------------------------------------------- --------------------------------------------------------------------------- THE JEAN COUTU GROUP (PJC) INC. Consolidated statements of cash flows 13 weeks 52 weeks For the periods ended February 27, 2010 and February 28, 2009 2010 2009 2010 2009 --------------------------------------------------------------------------- --------------------------------------------------------------------------- (unaudited, in millions of Canadian dollars) $ $ $ $ Operating activities Net earnings (loss) 42.8 (733.6) 112.6 (1,192.1) Items not affecting cash Amortization 8.0 6.6 30.3 23.5 Change in fair value of third party asset-backed commercial paper and related options of repayment 0.1 3.4 (4.6) 7.0 Share of loss in Rite Aid, a company subject to significant influence - 768.8 55.2 1,327.0 Future income taxes 15.7 2.8 24.7 10.0 Other (1.1) (1.1) (2.9) (0.5) --------------------------------------------------------------------------- 65.5 46.9 215.3 174.9 Net changes in non-cash asset and liability items (7.1) 1.2 (12.5) (28.3) --------------------------------------------------------------------------- Cash flow related to operating activities 58.4 48.1 202.8 146.6 --------------------------------------------------------------------------- Investing activities Investments and business acquisition (7.2) 0.2 (7.0) (3.4) Purchase of property and equipment (11.9) (8.2) (46.9) (49.2) Proceeds from disposal of property and equipment - - 1.2 0.8 Other long-term assets - (16.5) (27.2) (65.3) --------------------------------------------------------------------------- Cash flow related to investing activities (19.1) (24.5) (79.9) (117.1) --------------------------------------------------------------------------- Financing activities Net change in revolving credit facility, net of fees (16.7) (15.9) (69.8) 105.5 Repayment of long-term debt - (1.8) (5.4) (2.1) Issuance of capital stock 0.4 - 2.7 - Redemption of capital stock - - - (91.4) Dividends (10.6) (9.4) (42.5) (38.7) --------------------------------------------------------------------------- Cash flow related to financing activities (26.9) (27.1) (115.0) (26.7) --------------------------------------------------------------------------- Net change in cash and cash equivalents 12.4 (3.5) 7.9 2.8 Bank overdraft, beginning of period (25.7) (17.7) (21.2) (24.0) --------------------------------------------------------------------------- Bank overdraft, end of period (13.3) (21.2) (13.3) (21.2) --------------------------------------------------------------------------- --------------------------------------------------------------------------- THE JEAN COUTU GROUP (PJC) INC. Unaudited additional information For the periods ended February 27, 2010 and February 28, 2009 (In millions of Canadian dollars ) --------------------------------------------------------------------------- --------------------------------------------------------------------------- Non-GAAP measures Operating income before amortization ("OIBA") is not a measure of performance under Canadian generally accepted accounting principles ("GAAP"); however, management uses this performance measure in assessing the operating and financial performance of its operations. Besides, we believe that OIBA is an additional measure used by investors to evaluate operating performance and capacity of a company to meet its financial obligations. However, OIBA is not and must not be used as an alternative to net earnings or cash flow generated by operating activities as defined by GAAP. OIBA is not necessarily an indication that cash flow will be sufficient to meet our financial obligations. Furthermore, our definition of OIBA may not be necessarily comparative to a similar measure reported by other companies. Net earnings (loss), which is a performance measure defined by GAAP, is reconciled hereunder with OIBA. 13 weeks 52 weeks 2010 2009 2010 2009 --------------------------------------------------------------------------- $ $ $ $ Net earnings (loss) 42.8 (733.6) 112.6 (1,192.1) Financing expenses (revenues) 0.3 4.7 (4.2) 12.6 Share of loss in Rite Aid - 768.8 55.2 1,327.0 Income taxes 20.1 15.0 74.9 61.8 --------------------------------------------------------------------------- Operating income 63.2 54.9 238.5 209.3 Amortization of property and equipment 4.5 4.2 17.6 16.1 Amortization of incentives paid to franchisees (1) 3.5 2.4 12.7 7.4 --------------------------------------------------------------------------- Operating income before amortization 71.2 61.5 268.8 232.8 --------------------------------------------------------------------------- --------------------------------------------------------------------------- (1) Amortization of incentives paid to franchisees is applied against other revenues in the consolidated financial statements. THE JEAN COUTU GROUP (PJC) INC. Unaudited additional information For the periods ended February 27, 2010 and February 28, 2009 (In millions of Canadian dollars except per share amounts) --------------------------------------------------------------------------- Earnings (loss) (or earnings (loss) per share) before specific items and earnings (or earnings per share) before specific items and share of loss in Rite Aid are non-GAAP measures. The Company believes that it is useful for investors to be aware of significant items of an unusual or non- recurring nature that have adversely or positively affected its GAAP measures, and that the above-mentioned non-GAAP measures provide investors with a measure of performance with which to compare its results between periods without regard to these items. The Company's measures excluding certain items have no standardized meaning prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies and therefore should not be considered in isolation. Net earnings (loss) and earnings (loss) per share are reconciled hereunder to earnings (loss) (and earnings (loss) per share) before specific items and earnings (and earnings per share) before specific items and share of loss in Rite Aid. All amounts are net of income taxes when applicable. 13 weeks 52 weeks 2010 2009 2010 2009 --------------------------------------------------------------------------- $ $ $ $ Net earnings (loss) 42.8 (733.6) 112.6 (1,192.1) Unrealized foreign exchange losses (gains) on monetary items - (0.1) (0.5) 0.7 Change in fair value of third party asset-backed commercial paper and related options of repayment 0.1 3.4 (4.6) 7.0 --------------------------------------------------------------------------- Earnings (loss) before specific items 42.9 (730.3) 107.5 (1,184.4) --------------------------------------------------------------------------- --------------------------------------------------------------------------- Share of loss in Rite Aid - 768.8 55.2 1,327.0 --------------------------------------------------------------------------- Earnings before specific items and share of loss in Rite Aid 42.9 38.5 162.7 142.6 --------------------------------------------------------------------------- --------------------------------------------------------------------------- Earnings (loss) per share 0.18 (3.11) 0.48 (4.92) Unrealized foreign exchange losses (gains) on monetary items - - - - Change in fair value of third party asset-backed commercial paper and related options of repayment - 0.01 (0.02) 0.03 --------------------------------------------------------------------------- Earnings (loss) per share before specific items 0.18 (3.10) 0.46 (4.89) --------------------------------------------------------------------------- --------------------------------------------------------------------------- Share of loss in Rite Aid - 3.26 0.23 5.48 --------------------------------------------------------------------------- Earnings per share before specific items and share of loss in Rite Aid 0.18 0.16 0.69 0.59 --------------------------------------------------------------------------- --------------------------------------------------------------------------- FOR FURTHER INFORMATION PLEASE CONTACT: Source: The Jean Coutu Group (PJC) Inc. Andre Belzile Senior Vice-President, Finance and Corporate Affairs 450-646-9760 or Information: The Jean Coutu Group (PJC) Inc. Helene Bisson Senior Director, Communications 450-646-9611, Ext. 1165