Rona posts Q1 loss, higher revenue, ahead of takeover by Lowe's | iNFOnews | Thompson-Okanagan's News Source
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Rona posts Q1 loss, higher revenue, ahead of takeover by Lowe's

BOUCHERVILLE, Que. - Rona Inc. says it lost money in this year's first quarter but overall revenue increased despite weak sales in the Prairies.

The Quebec-based home improvement retailer is slated to become a subsidiary of Lowe's following a friendly $3.2-billion takeover deal announced in February.

Rona (TSX:RON) posted a $16.5 million net loss or 15 cents per share for the quarter ended March 27.

The quarter's loss included $3.5 million or three cents per share of restructuring costs and $4.1 million or four cents per share of acquisition costs.

Revenue was $819.2 million, up from $778.8 million a year earlier. Same-store sales grew 3.1 per cent with strong performance in Ontario, British Columbia and the Reno-Depot banner in Quebec. The company saw a decline in Prairie same-store sales.

After excluding restructuring and other items, Rona's adjusted loss was $9 million or eight cents per share.

By comparison, Rona's net loss in the first quarter of 2015 was $11.7 million or 11 cents per share including minimal restructuring costs. Its adjusted loss was $11.2 million or 10 cents per share.

News from © The Canadian Press, 2016
The Canadian Press

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