Home renovations retailer Rona capped potentially its last year as a Canadian-controlled company by beating expectations as net income grew on higher sales in the fourth quarter.
The Quebec-based firm said it earned $16.7 million in the 13 weeks ended Dec. 27, compared to $6.05 million a year earlier.
Excluding one-time items, its adjusted net income from continuing operations rose to $21.2 million or 20 cents per share, from $17.3 million or 15 cents per share in the fourth quarter of 2014.
Revenues grew 6.5 per cent to $1.03 billion, mainly from the acquisition of 20 franchised stores and a 0.8 per cent increase in retail same-store sales, which measures sales at stores that have been open for at least a year.
The company was expected to earn 18 cents per share on $1.01 billion, according to analysts polled by Thomson Reuters.
Rona said a good performance in Ontario and British Columbia and warmer weather conditions prolonged the building and renovation season in several regions of the country, offsetting challenging economic conditions in Alberta.
For the full year, net profits decreased to $68.05 million from $78.25 million. Excluding restructuring and other costs, adjusted net income grew to $261.7 million or 95 cents per share, from $235.4 million or 70 cents per share in 2014.
Revenues were up to $4.23 billion from $4.10 billion. Same-store sales were up 3.1 per cent for the year.
Rona's board agreed on Feb. 3 to sell the company to U.S. retailer Lowe's for $24 per share, subject to shareholder and regulatory approvals.