TORONTO, April 16 /CNW/ - Sears Canada (TSX: SCC) today announced its
unaudited first quarter results. Net earnings for the 13 week period ended
March 29, 2003 were $11.4 million compared to a net loss of $115.9 million for
the same period last year. Earnings per share were 11 cents compared to a loss
of $1.09 per share in the quarter last year.
Earnings in the quarter this year include an after-tax gain of
$4.3 million related to the sale of receivables through the Company's
securitization program. Last year's results include an after-tax expense of
$124.3 million, primarily related to the conversion of the remaining Eaton's
stores to the Sears banner. Excluding these non-comparable items, operating
earnings in the quarter were $7.1 million or 7 cents per share compared to
$8.4 million or 8 cents per share last year.
Total revenues for the quarter were $1.282 billion compared to
$1.405 billion in the quarter last year, an 8.7% decrease. Merchandise sales
decreased 12.7%. Same store sales decreased 14.1%.
Commenting on the quarter, Mark A. Cohen, Chairman and Chief Executive
Officer stated, "Several factors contributed to our negative sales. We
continue to be affected by planned reductions in unprofitable sales
promotions. This impact lessens in the second half of this year. Sales have
also been negatively impacted by our substantially lower inventory of trailing
season clearance. Add to this unusual weather throughout much of Canada and
continued consumer caution." Mr. Cohen continued, "We are extremely pleased
with sales of 'Sears More Value' merchandise. In addition, the launch of the
second component of our value strategy, 'Sears Essentials', has been very well
received. As a result, sales of regular priced merchandise increased 16% in
the quarter. Gross margins improved as well - an increase of 290 basis points
over last year. Inventories at the end of the quarter were $75 million below
last year, while expenses were $8 million below last year."
Commenting on the Company's outlook for the balance of the year, Cohen
stated, "Sales will improve as we cycle past the Eatons conversions that took
place in mid August 2002. The launch of the third component of our value
strategy - 'Sears on Sale' - at mid-year will enable us to improve our sales
trend from current levels. Our inventory and overall expense spending will
remain conservative while advertising spending will increase in the second
half." Cohen went on to say, "We are reaffirming our earlier guidance of
$1.50 per share operating earnings for the year, an improvement of 15% over
last year."
This release includes discussion of forward-looking information and
potential future circumstances and developments. The discussion of such
matters is qualified by the inherent risks and uncertainties surrounding
future expectations generally, and may materially differ from the Company's
actual experience.
Sears Canada is a multi-channel retailer with a network of 122 department
stores, 43 furniture and appliances stores, over 2,200 catalogue merchandise
pick-up locations, 143 dealer stores, 15 outlet stores, 51 floor covering
centres, 52 auto centres, 110 Sears Travel offices and a nationwide
maintenance, repair, and installation network. The Company also publishes
Canada's most extensive general merchandise catalogue and offers shopping
online at www.sears.ca.
<<
Sears Canada Inc.
Reconciliation of Operating earnings to Published earnings
(in millions, except per share amounts)
(note: some figures may not add due to rounding)
13 Week periods ended March 29, 2003 and March 30, 2002
Earnings
Before Tax After tax per share
2003 2002 2003 2002 2003 2002
-------------------------------------------------------------------------
Earnings (loss) before
non-comparable items $14.0 $15.5 $7.1 $8.4 $0.07 $0.08
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Securitization gain
(loss) 6.5 (9.8) 4.3 (5.9) 0.04 (0.06)
Conversion of Eatons
stores - (180.0) (120.6) - (1.13)
Sale of airplane - 3.6 2.2 - 0.02
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Net earnings (loss) $20.5 $(170.6) $11.4 $(115.9) $0.11 $(1.09)
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SEARS CANADA INC.
Consolidated Statements of Financial Position
As at As at As at
(in millions) March 29,2003 March 30,2002 December 28,2002
-------------------------------------------------------------------------
(unaudited) (unaudited) (audited)
ASSETS
Current Assets
Cash and short-term
investments $ 51.6 $ 182.0 $ 142.8
Accounts receivable
(Notes 3 and 4) 1,083.1 793.0 1,384.2
Income taxes recoverable 7.1 7.9 4.1
Inventories 819.9 895.2 754.0
Prepaid expenses and
other assets 111.2 126.4 109.4
Current portion of future
income tax assets 180.6 110.3 183.1
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2,253.5 2,114.8 2,577.6
Investments and other
assets (Note 5) 70.7 73.8 59.7
Capital assets 1,001.0 1,001.7 1,036.9
Deferred charges 303.9 322.6 309.3
Future income tax assets 76.7 172.8 77.8
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$ 3,705.8 $ 3,685.7 $ 4,061.3
-------------------------------------------------------------------------
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LIABILITIES
Current liabilities
Accounts payable $ 576.8 $ 629.4 $ 799.0
Accrued liabilities 432.8 433.0 517.3
Income and other taxes
payable 40.0 70.6 99.1
Principal payments on
long-term obligations due
within one year (Note 6) 6.3 10.1 6.2
Current portion of
deferred credit - 13.7 30.0
-------------------------------------------------------------------------
1,055.9 1,156.8 1,451.6
Long-term obligations
(Note 6) 770.5 801.7 770.2
Deferred credit - 61.7 24.2
Accrued benefit liability 173.1 167.9 168.4
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1,999.5 2,188.1 2,414.4
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SHAREHOLDERS' EQUITY
Capital stock 458.3 457.7 458.1
Retained earnings 1,248.0 1,039.9 1,188.8
-------------------------------------------------------------------------
1,706.3 1,497.6 1,646.9
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$ 3,705.8 $ 3,685.7 $ 4,061.3
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SEARS CANADA INC.
CONSOLIDATED STATEMENTS OF EARNINGS
13 Week 13 Week
Unaudited Period Ended Period Ended
(in millions, except per share amounts) March 29,2003 March 30,2002
-------------------------------------------------------------------------
Total Revenues $ 1,281.9 $ 1,404.7
-------------------------------------------------------------------------
Cost of merchandise sold, operating,
administrative and selling expenses 1,207.9 1,342.4
Depreciation and amortization 38.7 40.0
Interest 14.8 16.5
Unusual items (Note 7) - 176.4
-------------------------------------------------------------------------
Earnings (loss) before income taxes 20.5 (170.6)
-------------------------------------------------------------------------
Income taxes
Current 5.5 13.7
Future 3.6 (68.4)
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9.1 (54.7)
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Net earnings (loss) $ 11.4 $ (115.9)
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Earnings (loss) per share (Note 8) $ 0.11 $ (1.09)
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Diluted earnings (loss) per share (Note 8) $ 0.11 $ (1.09)
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CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
13 Week 13 Week
Unaudited Period Ended Period Ended
(in millions) March 29,2003 March 30,2002
-------------------------------------------------------------------------
Opening balance $ 1,188.8 $ 1,162.2
Adoption of new accounting policy for
Business Combinations (Note 2) 54.2 -
Net earnings (loss) 11.4 (115.9)
Dividends declared and paid (6.4) (6.4)
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Closing balance $ 1,248.0 $ 1,039.9
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CONSOLIDATED STATEMENTS OF CASH FLOWS
13 Week 13 Week
Unaudited Period Ended Period Ended
(in millions) March 29,2003 March 30,2002
-------------------------------------------------------------------------
CASH FLOWS GENERATED FROM (USED FOR)
OPERATIONS
Net earnings (loss) $ 11.4 $ (115.9)
Non-cash items included in net earnings,
principally depreciation, amortization
and future income taxes 47.8 127.3
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59.2 11.4
Changes in non-cash working capital
balances related to operations (467.2) (287.2)
-------------------------------------------------------------------------
(408.0) (275.8)
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CASH FLOWS GENERATED FROM (USED FOR)
INVESTMENT ACTIVITIES
Purchases of capital assets (9.7) (3.6)
Proceeds from sale of capital assets 6.3 4.2
Charge account receivables 338.4 127.8
Deferred charges (0.3) (0.2)
Investments and other assets (11.1) 7.7
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323.6 135.9
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CASH FLOWS GENERATED FROM (USED FOR)
FINANCING ACTIVITIES
Repayment of long-term obligations (0.4) (1.0)
Dividends paid (6.4) (6.4)
-------------------------------------------------------------------------
(6.8) (7.4)
-------------------------------------------------------------------------
DECREASE IN CASH AND SHORT-TERM INVESTMENTS (91.2) (147.3)
CASH AND SHORT-TERM INVESTMENTS AT BEGINNING
OF PERIOD 142.8 329.3
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CASH AND SHORT-TERM INVESTMENTS AT END
OF PERIOD $ 51.6 $ 182.0
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Sears Canada Inc.
Notes to the Interim Consolidated Financial Statements
March 29, 2003
Unaudited
1. Disclosure
These interim consolidated financial statements (the "financial
statements") do not contain all disclosures required by Canadian
generally accepted accounting principles for annual financial
statements, and accordingly, the financial statements should be read
in conjunction with the most recently prepared annual financial
statements for the 52 week period ended December 28, 2002. Figures
for the 13 week periods ended March 29, 2003 and March 30, 2002 and
the balances at those dates are unaudited.
The Company's business follows a seasonal pattern, with merchandise
sales traditionally being higher in the fourth quarter than in other
quarterly periods due to consumer holiday buying patterns. As a
result, a disproportionate portion of total revenues is typically
earned in the fourth quarter. The business seasonality results in
performance for the 13 week period ended March 29, 2003 which is not
necessarily indicative of performance for the balance of the year.
2. Accounting Policies
These financial statements follow the same accounting policies and
methods of their application as the most recent annual financial
statements for the 52 week period ended December 28, 2002, except as
follows:
a) Stock-based compensation
Effective December 29, 2002, the Company adopted, on a
prospective basis, the new recommendations issued by The Canadian
Institute of Chartered Accountants ("the CICA") relating to
Stock-based Compensation And Other Stock-based Payments. In
accordance with the new standard, awards of shares granted after
adoption of the standard are measured on grant date using a fair
value based method and expensed over the vesting period.
No compensation expense is recognized when stock options are
granted to employees. The Company discloses pro forma net
earnings, pro forma basic earnings per share and pro forma
diluted earnings per share as if the fair value method had been
used (see Note 12). For tandem awards with a cash settlement
feature, the Company recognizes a liability based on the value of
the award at the end of the period. Any consideration paid on
exercise of stock options or purchase of shares is credited to
share capital.
b) Goodwill and Other Intangible Assets
Effective December 29, 2002, the Company adopted, on a
prospective basis, the new recommendations issued by the CICA
relating to Goodwill And Other Intangible Assets. Under the new
standard, the Company does not amortize goodwill, and recognized
intangible assets are amortized over their useful life to the
Company, unless the life is determined to be indefinite. When an
intangible asset is determined to have an indefinite life, it is
not amortized until its life is considered to be no longer
indefinite. Goodwill and intangible assets are subject to annual
impairment tests.
c) Business Combinations
Effective December 29, 2002, the Company adopted, on a
prospective basis, the new recommendations of the CICA for
Business Combinations. In accordance with the transitional
provisions of the standard, on December 29, 2002 the unamortized
deferred credit of $54.2 million related to the excess of the
fair value of acquired net assets over cost arising from the
acquisition of Eaton's was credited to retained earnings.
3. Accounts Receivable
Details of accounts receivable are as follows:
As at As at As at
March 29, March 30, December 28,
(in millions) 2003 2002 2002
---------------------------------------------------------------------
Charge accounts receivable -
current $ 1,756.2 $ 1,646.8 $ 1,882.4
Charge accounts receivable -
deferred 700.4 654.9 870.6
---------------------------------------------------------------------
Managed accounts 2,456.6 2,301.7 2,753.0
Less : co-ownership interest
held by third parties (1,463.9) (1,589.1) (1,423.5)
---------------------------------------------------------------------
Co-ownership retained by
the Company 992.7 712.6 1329.5
Interest-only strip receivable
(Note 4) 25.9 23.3 20.6
Miscellaneous receivables 64.5 57.1 34.1
---------------------------------------------------------------------
Total $ 1,083.1 $ 793.0 $ 1,384.2
---------------------------------------------------------------------
---------------------------------------------------------------------
The total credit losses year to date on managed accounts, net of
recoveries, were $ 22.8 million (2002 - $ 18.7 million).
70.7% (2002 - 71.7%) of the current charge accounts receivable have
a payment status that is current.
4. Transfers of Receivables
Securitization is an important financial vehicle which provides the
Company with access to funds at a low cost. The Company sells
undivided co-ownership interests in its portfolio of current and
deferred charge account receivables to three separate trusts and
retains the right to receive the income generated by the undivided
co-ownership interests sold to the trusts in excess of the trusts'
stipulated share of service charge revenues. The Company does not
control the trusts and therefore, these financial statements do not
include the assets, liabilities, and results of operations of the
trusts. The trusts have financed the purchase of the co-ownership
interests primarily through the issuance of debt to independent third
party investors totalling $ 1,463.9 million (2002 -
$ 1,589.1 million).
The undivided co-ownership interest is sold on a fully serviced basis
and the Company receives no fee for ongoing servicing
responsibilities. The Company receives proceeds equal to fair value
for the assets sold and retained rights to future cash flows arising
after the investors in the securitization trusts have received the
return for which they contracted. The co-owners have no recourse to
the Company's retained interest in the receivables sold other than in
respect of amounts in the cash reserve account (Note 5) and the
interest-only strip receivable. The co-owners have no recourse to the
Company's other assets.
Effective July 1, 2001, the Company adopted, on a prospective basis,
the new accounting guideline, Accounting Guideline - 12 Transfers of
Receivables, issued by the CICA. For balances transferred prior to
July 1, 2001, and subsequent transfers committed to before that date,
the Company will continue to follow the previous accounting guidance,
and will not recognize any gains or losses at the date of transfer.
Under the new policy, the Company recognizes gains or losses on
transfers of receivables that qualify as sales and recognizes certain
financial components that are created as a result of such sales,
which consist primarily of the retained interest in the form of a
cash reserve account and the retained rights to future excess yield
from the transferred receivables (interest-only strip). A gain or
loss on sale of the receivables depends in part on the previous
carrying amount of the receivables involved in the transfer,
allocated between the assets sold and the retained interests based on
their relative fair value at the date of transfer. Retained interests
are initially recorded at fair value, which is estimated based upon
the present value of the expected future cash flows. Any subsequent
decline in the value of the retained interest, other than a temporary
decline, will be recorded as a reduction to income.
During the quarter ended March 29, 2003, the Company recognized a
pre-tax gain of $6.5 million (2002 - reduction in revenue of
$9.8 million) related to the timing of recognition of income on the
sale of charge account receivables. As at March 29, 2003 the
interest-only strip was recorded at $25.9 million (2002 - $23.3
million). The following table shows the key economic assumptions used
in measuring the interest-only strip. The table also displays the
sensitivity of the current fair value of residual cash flows to
immediate 10% and 20% adverse changes in yield, payment rate, net
charge-off rate and discount rate assumptions:
Effects of Adverse Changes
(in millions)
Assumptions 10% 20%
---------------------------------------------------------------------
Yield (annual rate) 24.03% 4.0 8.0
Principal payment rate (monthly) 25.00% 2.3 4.2
Net charge-off rate (annual rate) 4.48% 0.8 1.4
Discount rate (annual rate) 12.00% - -
---------------------------------------------------------------------
The table below summarizes certain cash flows related to the transfer
of receivables during the quarter:
13 Week 13 Week
Period Ended Period Ended
(in millions) March 29,2003 March 30,2002
---------------------------------------------------------------------
Proceeds from new transfers $ 89.8 $ -
Proceeds from collections 238.4 205.1
Other cash flows relating to retained
interests 3.6 (6.8)
---------------------------------------------------------------------
5. Investments and Other Assets
As at As at As at
March 29, March 30, December 28,
(in millions) 2003 2002 2002
---------------------------------------------------------------------
Unsecured debentures $ 41.8 $ 34.6 $ 34.6
Subordinated loans 5.1 11.2 4.9
Retained interest in
transferred receivables
- cash reserve account 23.8 28.0 20.2
---------------------------------------------------------------------
Total $ 70.7 $ 73.8 $ 59.7
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---------------------------------------------------------------------
6. Long-term Obligations
The Company's total cash payments for interest paid in the 13 week
period ended March 29, 2003 were $13.6 million (2002 -
$13.6 million).
7. Unusual Items
The Company recorded a pre-tax expense of $176.4 million during the
quarter ended March 30, 2002, comprising:
(in millions) 13 Week
Period Ended
March 30,2002
--------------------------------------------------------
Eatons conversion $ (180.0)
Sale of airplane 3.6
--------------------------------------------------------
Total $ (176.4)
--------------------------------------------------------
--------------------------------------------------------
On February 18, 2002, after careful consideration of strategic
alternatives, the Company announced that it had made a decision to
convert its seven Eatons department stores to the Sears banner by the
end of July 2002. For the quarter ended March 30, 2002, the Company
recorded a one time, pre-tax charge of $180.0 million, consisting of
$30 million in cash for severance payments, third party commitments,
and closing costs, and a $150 million non-cash write down of fixtures
and leasehold improvements.
During the quarter ended March 30, 2002, the Company realized a
pre-tax gain of $3.6 million on the sale of a corporate airplane.
8. Earnings per Share
A reconciliation of the number of shares used in the earnings
per share calculation is as follows:
13 Week 13 Week
Period Ended Period Ended
March 29,2003 March 30,2002
------------------------------
Number Number
of shares of shares
------------------------------
Average number of shares per basic
earnings per share calculations 106,774,688 106,736,214
Effect of dilutive options outstanding 281,665 -
---------------------------------------------------------------------
Average number of shares per diluted
earnings per share calculation 107,056,353 106,736,214
---------------------------------------------------------------------
9. Segmented Information
Segmented Statement of Earnings
13 Week 13 Week
Period ended Period ended Increase/
(in millions) March 29, 2003 March 30, 2002 (decrease)
---------------------------------------------------------------------
Total revenues
Credit
Operating $ 109.1 $ 106.7 2.3%
Securitization gain/(loss) 6.5 (9.8) n/a
Securitization costs (20.2) (21.2) (4.7%)
--------------------------------------
95.4 75.7 26.0%
Merchandising 1,172.2 1,314.9 (10.9%)
Real Estate Joint Ventures 14.3 14.1 1.4%
---------------------------------------------------------------------
Total revenues $ 1,281.9 $ 1,404.7 (8.7%)
---------------------------------------------------------------------
---------------------------------------------------------------------
Earnings before interest,
unusual items, and taxes
Credit
Operating $ 53.3 $ 47.9
Securitization gain/(loss) 6.5 (9.8)
Securitization costs (20.2) (21.2)
--------------------------------------
39.6 16.9
Merchandising (11.9) (2.0)
Real Estate Joint Ventures 7.6 7.4
---------------------------------------------------------------------
Earnings before interest,
unusual items, and taxes 35.3 22.3
---------------------------------------------------------------------
Interest expense 14.8 16.5
Unusual items - loss - 176.4
Income tax expense (recovery) 9.1 (54.7)
---------------------------------------------------------------------
Net earnings (loss) $ 11.4 $ (115.9)
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Segmented Statement of Capital Employed(*)
As at As at As at
March 29, March 30, December 28,
(in millions) 2003 2002 2002
---------------------------------------------------------------------
Merchandising $ 1,293.2 $ 1,415.4 $ 949.5
Credit 1,020.5 740.9 1,320.4
Real Estate Joint Ventures 169.4 153.1 153.4
---------------------------------------------------------------------
Total $ 2,483.1 $ 2,309.4 $ 2,423.3
---------------------------------------------------------------------
---------------------------------------------------------------------
(*) Capital Employed represents total of long-term obligations,
including principal payments on long-term obligations due within
one year, and Shareholders' Equity.
Segmented Statement of Total Assets
As at As at As at
March 29, March 30, December 28,
(in millions) 2003 2002 2002
---------------------------------------------------------------------
Merchandising $ 2,476.3 $ 2,719.1 $ 2,533.7
Credit 1,049.0 787.2 1,348.2
Real Estate Joint Ventures 180.5 179.4 179.4
---------------------------------------------------------------------
Total $ 3,705.8 $ 3,685.7 $ 4,061.3
---------------------------------------------------------------------
---------------------------------------------------------------------
10. Income Taxes
The Company's total cash payments for income taxes paid in the
13 week period ended March 29, 2003 were $8.6 million (2002 -
$39.9 million).
11. Capital Stock
Outstanding Share Data as at March 29, 2003
106,786,653 common shares issued and outstanding.
On February 28, 2003, the Company announced its intention to purchase
for cancellation up to 5% of its issued and outstanding common
shares, representing up to 5,338,577 of the issued and outstanding
common shares. The purchases were eligible to commence on March 4,
2003 and must terminate by March 3, 2004 pursuant to the Notice of
Intention filed with The Toronto Stock Exchange. The price which the
Company will pay for any such shares will be the market price at the
time of acquisition. No shares had been purchased at March 29, 2003.
12. Stock-based compensation plans
The Company has three stock-based compensation plans, the Employees
Stock Plan, the Stock Option Plan for Directors and the Directors'
Share Purchase Plan, described in Note 10 of the Consolidated
Financial Statements in the 2002 Annual Report. The Employees Stock
Plan provides for the granting of options and Special Incentive
shares and options. In 1998, the Employees Stock Plan was amended to
permit the issuance of tandem awards. Tandem awards provide employees
with stock appreciation rights ("SARs") which allow employees to
choose to exercise SARs instead of the corresponding options. In such
cases, the employees receive cash payments equal to the amount by
which the market price of the shares on the date of exercise of the
SARs exceeds the exercise price of the corresponding options. No
compensation expense was recorded in the first quarter related to
SARs.
Under the Plans, the exercise price of options is determined using
the weighted average price at which the Company's shares traded on
the Toronto Stock Exchange on the five trading days preceding the
grant date. Awards generally vest over three years, and are
exercisable within 10 years from grant date. Certain Special
Incentive shares and options have specified performance criteria.
During the quarter ended March 29, 2003, 120,000 Special Incentive
shares were awarded at $18.23 per share under the Employees Stock
Plan. Awards of shares under the Plan are measured at fair value on
grant date and expensed over the vesting period. A compensation cost
of $0.2 million has been recognized as an expense and credited to
share capital for the quarter ended March 29, 2003. In addition,
15,003 Special Incentive shares were issued and 12,500 Special
Incentive shares were terminated during the quarter. These Special
Incentive shares were awarded prior to December 29, 2002. A total of
325,831 shares are granted but unearned under the Plan.
During the quarter ended March 29, 2003, 491,630 stock options were
granted under the Employees Stock Plan. The weighted average
grant-date fair value of options granted in the quarter has been
estimated at $6.96 using the Black-Scholes model for pricing options.
The following assumptions were used for the valuation of options:
Risk-free interest rate 4.6%
Expected life (years) 8.2
Expected volatility 29.7%
Expected dividend yield 1.28%
Had the Company applied the fair value method to stock options
granted in the quarter, net earnings and earnings per share would be
adjusted to the following pro forma amounts:
Period ended
(in millions, except per share amounts) March 29, 2003
Net income for the period, as reported $ 11.4
Pro forma net income for the period 11.2
Basic earnings per share, as reported 0.11
Pro forma basic earnings per share 0.11
Diluted Earnings per share, as reported 0.11
Pro forma diluted earnings per share 0.11
Employees' Stock Plan As at March 29, 2003
Weighted
average
Fixed options exercise
Options price
------- -----
Outstanding at beginning of period 2,097,740 $ 22.14
Granted 491,630 18.23
Exercised 2,420 9.16
-------------
Outstanding at end of period 2,586,950 21.41
-------------
Options exercisable at end of period 1,591,710 22.98
-------------
Special incentive options
Outstanding at beginning of period 995,000 27.72
Forfeited (Terminated) 170,000 22.75
-------------
Outstanding at end of period 825,000 28.75
-------------
Options exercisable at end of period - -
-------------
Directors' Stock Option Plan As at March 29, 2003
Weighted
average
Fixed options exercise
Options price
------- -----
Outstanding at beginning and end of period 29,250 $ 24.96
-------------
Options exercisable at end of period 13,250 28.69
-------------
Stock options outstanding at the end of the period:
Employees Stock Plan
Fixed options
Options outstanding Options exercisable
------------------- -------------------
Weighted Weighted Weighted
average average average
Exercise Number remaining exercise Number exercise
price outstanding life price exercisable price
-------- ----------- --------- -------- ----------- --------
$ 5.58 102,249 2.9 $ 5.58 102,249 $ 5.58
10.65 122,274 3.8 10.65 122,274 10.65
18.23 491,630 9.8 18.23 - -
18.37 483,840 8.8 18.37 161,280 18.37
19.63 235,398 4.8 19.63 235,398 19.63
21.19 275,779 5.8 21.19 275,779 21.19
21.51 3,000 8.0 21.51 2,000 21.51
21.72 539,040 7.8 21.72 358,990 21.72
24.73 9,000 5.0 24.73 9,000 24.73
40.68 324,740 6.8 40.68 324,740 40.68
------------ ------------
Total 2,586,950 7.4 $ 21.41 1,591,710 $ 22.98
------------ ------------
Special incentive options
Options outstanding Options exercisable
------------------- -------------------
Weighted Weighted Weighted
average average average
Exercise Number remaining exercise Number exercise
price outstanding life price exercisable price
-------- ----------- --------- -------- ----------- --------
$ 28.75 825,000 5.3 $ 28.75 - -
Directors' Stock Option Plan
Fixed options
Options outstanding Options exercisable
------------------- -------------------
Weighted Weighted Weighted
average average average
Exercise Number remaining exercise Number exercise
price outstanding life price exercisable price
-------- ----------- --------- -------- ----------- --------
$ 19.83 9,000 9.0 $ 19.83 - $ -
21.32 8,250 8.3 21.32 2,750 21.32
25.98 3,000 5.1 25.98 3,000 25.98
29.96 4,500 6.1 29.96 4,500 29.96
36.23 4,500 7.0 36.23 3,000 36.23
------------ ------------
Total 29,250 7.7 $ 24.96 13,250 $ 28.69
------------ ------------
13. Comparative Figures
Certain comparative figures have been reclassified to conform with
the current period's presentation.
>>
For further information: Media Relations Contact: Vincent C. Power,
Sears Canada Inc., (416) 941-4422, vpower@email.sears.ca; Investor
Relations Contact: Tony Prisco, Sears Canada Inc., (416) 941-2115,
tprisco@sears.ca
