Couche-Tard: First-quarter earnings up, cash sufficient for operations

By Lisa Kerner

Charlotte, N.C., Aug. 30 - Alimentation Couche-Tard Inc.'s results for the first quarter of fiscal 2012 were impacted somewhat by higher fuel costs and adverse weather conditions, president and chief executive officer Alain Bouchard said during the company's earnings call on Tuesday.

Net earnings for the period ended July 17 increased 9.9%, or $12.6 million, to $139.5 million from the prior-year period due in part to the drop in financial expenses, the strengthening of the Canadian dollar and a lower income tax rate.

For the fiscal first quarter, net expenses were down by $4.9 million compared with the first quarter of fiscal 2011, due primarily to the early redemption of $350 million of subordinated debt during the third quarter of fiscal 2011, a company news release said.

Couche-Tard used $20.5 million of available cash for capital expenditures and $14.4 million for store acquisitions in the fiscal first quarter.

Cash generated from operations together with borrowings available under its revolving credit facilities will be adequate to meet Couche-Tard's liquidity needs in the foreseeable future, the company said.

At July 17, $486 million of the company's term revolving operating credits had been used and about $484 million was available under Couche-Tard's credit agreements. The company also had standby letters of credit outstanding in the amount of C$800,000 and $29.4 million.

In total, Couche-Tard had access to more than $975 million through its available cash and credit agreements at quarter-end.

The company reduced its long-term debt in the first quarter by $900,000.

Alimentation Couche-Tard is a Quebec-based convenience store operator.

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