WINNIPEG, Manitoba, June 05, 2024 (GLOBE NEWSWIRE) -- (TSX:NWC): The North West Company Inc. (the "Company" or "North West") today reported its unaudited financial results for the first quarter ended April 30, 2024. It also announced that the Board of Directors has declared a quarterly dividend of $0.39 to shareholders of record on June 28, 2024, to be paid on July 15, 2024. "We started the year with solid same store sales gains which were a key factor in driving the results in the quarter," commented President & CEO, Dan McConnell. "We remain focused on our Operational Excellence initiatives, being in-stock and providing value to our customers." Financial Highlights Sales First quarter consolidated sales increased 4.0% to $617.5 million compared to $593.6 million last year driven by same store sales gains, one extra day of sales in the quarter as a result of February 29th and the impact of new stores. Excluding the foreign exchange impact, consolidated sales increased 4.0%, with food sales increasing 3.9% and general merchandise and other sales increasing 4.3% compared to last year. On a same store basis, sales increased 3.8%1 compared to the first quarter last year with a 4.7% increase in same store sales in Canadian Operations and a 2.5% increase in same store sales in International Operations. Gross Profit Gross profit increased 7.9% to $199.6 million compared to $184.9 million last year due to sales gains and a 117 basis point increase in gross profit rate compared to last year. The increase in gross profit rate was largely due to changes in sales blend, including a lower blend of wholesale food sales, and a greater pass through of vendor cost inflation in retail prices compared to the first quarter last year. Selling, Operating and Administrative Expenses Selling, operating and administrative expenses ("Expenses") increased $8.6 million or 5.7% compared to last year and were up 41 basis points as a percentage to sales. The increase in Expenses is mainly due to cost inflation impacts, including higher wage costs, an increase in depreciation and new store expenses. These factors were partially offset by lower share-based compensation costs primarily due to adjustments from changes in the Company's share price. Earnings From Operations Earnings from operations ("EBIT") increased 17.9% to $39.8 million compared to $33.8 million last year and earnings before interest, income taxes, depreciation and amortization ("EBITDA2") increased 15.2% to $67.9 million compared to $59.0 million last year due to the sales, gross profit and Expense factors previously noted. Adjusted EBITDA2, which excludes share-based compensation costs increased 11.0% to $70.8 million compared to $63.8 million last year and as a percentage to sales was 11.5% compared to 10.7% last year. Net Earnings Net earnings increased 22.3% to $27.2 million compared to $22.2 million last year. Net earnings attributable to shareholders were $25.5 million and diluted earnings per share were $0.53 per share compared to $0.43 per share last year. Adjusted net earnings2, which excludes the after-tax impact of the share-based compensation costs, increased $3.4 million or 12.9% to $29.4 million compared to $26.1 million last year due to the gross profit and Expense factors previously noted. Non-GAAP Financial Measures The Company uses the following non-GAAP financial measures: earnings before interest, income taxes, depreciation and amortization ("EBITDA"), adjusted EBITDA and adjusted net earnings. The Company believes these non-GAAP financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Company for the reasons outlined below. Earnings Before Interest, Income Taxes, Depreciation and Amortization (EBITDA) is not a recognized measure under IFRS. Management believes that in addition to net earnings, EBITDA is a useful supplemental measure as it provides investors with an indication of the Company's operational performance before allocating the cost of interest, income taxes and capital investments. Investors should be cautioned however, that EBITDA should not be construed as an alternative to net earnings determined in accordance with IFRS as an indicator of the Company's performance. The Company's method of calculating EBITDA may differ from other companies and may not be comparable to measures used by other companies. Adjusted EBITDA and Adjusted Net Earnings are not recognized measures under IFRS. Management uses these non-GAAP financial measures to exclude the impact of certain income and expenses that must be recognized under IFRS. The excluded amounts are either subject to volatility in the Company's share price or may not necessarily be reflective of the Company's underlying operating performance. These factors can make comparisons of the Company's financial performance between periods more difficult. The Company may exclude additional items if it believes that doing so will result in a more effective analysis and explanation of the underlying financial performance. The exclusion of these items does not imply that they are non-recurring. These measures do not have a standardized meaning prescribed by GAAP and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies and should not be construed as an alternative to the other financial measures determined in accordance with IFRS. Reconciliation of consolidated earnings from operations (EBIT) to EBITDA and adjusted EBITDA: