Alimentation Couche-Tard Announces its Results for its First Quarter of Fiscal Year 2020

Published

Quarter

  • Net earnings attributable to shareholders of the Corporation ("net earnings") of $538.8 million ($0.95 per share on a diluted basis) for the first quarter of fiscal 2020 compared with $455.6 million ($0.81 per share on a diluted basis) for the first quarter of fiscal 2019. Excluding certain items for both comparable periods, net earnings for the quarter would have been approximately $548.0 million1 or $0.971 per share on a diluted basis, compared with $0.871 per share on a diluted basis for the first quarter of fiscal 2019, an increase of 11.5%.
  • Total merchandise and service revenues of $3.6 billion, an increase of 1.6%. Same-store merchandise revenues increased by 2.5% in the U.S., by 0.7% in Europe and by 0.3% in Canada.
  • Merchandise and service gross margin increased by 0.5% in the U.S. to 34.0%, while it decreased by 0.9% in Europe to 41.5%, and by 1.6% in Canada to 32.9%.
  • Same-store road transportation fuel volume increased by 0.6% in the U.S. and by 0.4% in Canada, while it decreased by 1.6% in Europe.
  • Road transportation fuel gross margin increased by 4.16¢ per gallon in the U.S. to 26.86¢ per gallon, while it decreased by US 0.77¢ per liter in Europe to US 8.44¢ per liter, and by CA 1.51¢ per liter in Canada to CA 7.40¢ per liter.
  • Circle K rebranding project continues in North America with more than 5,800 stores now displaying the new Circle K global brand.
  • Return on capital employed2 at 13.2%, up 60 basis points, driven by higher earnings before interests and taxes.
  • Adjusted leverage ratio2 continued to improve and reached 2.03 : 1 partly driven by debt repayment of $150.0 million.
  • Approval, on September 4, 2019, of a two-for-one split of all the Corporation's issued and outstanding Class "A" and Class "B" shares on record as at September 20, 2019.
  • Adoption, on April 29, 2019, of the new International Financial Reporting Standards on lease accounting ("IFRS 16") with significant impacts on the presentation of statement of earnings, cash flows and balance sheet, without impact on strategy or financial framework.

LAVAL, QC, Sept. 4, 2019 /PRNewswire/ - For its first quarter ended July 21, 2019, Alimentation Couche-Tard Inc. ("Couche-Tard" or the "Corporation") (TSX: ATD.A) (TSX: ATD.B) announces net earnings attributable to shareholders of the Corporation of $538.8 million, representing $0.95 per share on a diluted basis. The results for the first quarter of fiscal 2020 were affected by a pre-tax net foreign exchange loss of $6.5 million, an income tax expense of $4.5 million (of which $3.5 million is attributable to shareholders of the Corporation) following the asset exchange transaction with CAPL, as well as pre-tax acquisition costs of $0.2 million. The results for the comparable quarter of fiscal 2019 were affected by a $55.0 million pre-tax impairment charge on CAPL's goodwill, pre-tax restructuring costs of $1.5 million, a pre-tax net foreign exchange loss of $1.0 million, as well as pre-tax acquisition costs of $0.5 million. Excluding these items, the adjusted diluted net earnings per share would have been $0.971 for the first quarter of fiscal 2020, compared with $0.871 for the first quarter of fiscal 2019, an increase of 11.5%, driven by higher road transportation fuel margins in the U.S., and lower financing costs following deleveraging, partly offset by higher income tax rate. All financial information is in US dollars unless stated otherwise.

1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16.
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16.

 

"We had steady growth in our convenience segment this quarter even as we cycled against an exceptional first quarter last year.  While all our regions saw increases in same-store sales, I am especially proud of the innovations taking place in our network to improve our offer and the customer journey," stated Brian Hannasch, President and CEO of Alimentation Couche-Tard. "This quarter, we launched our Easy Pay loyalty program nationally in the U.S., expanded our digital upsell platform to over 5,700 locations, started piloting home delivery in Texas, and progressed with our popular food-to-go initiatives in Europe.  We leveraged national promotions and targeted local campaigns to increase the Circle K brand exposure, and we are working hard to learn more about our customers and making their lives a little easier every day."

"While fuel volume were healthy and fuel margins remained strong in the U.S., we continue to feel pressure in our European business from a competitive backdrop and unfavorable weather conditions.  Across the board, our focus is on executing our growth strategy in terms of pricing, loyalty programs and mobile payment, and broadening awareness of our Circle K Fuel brand.  In the U.S., we reached our 2,000th location dispensing the Circle K Fuel Brand as we push forward our global priority to bring more traffic to our sites and enhance our margins", concluded Brian Hannasch.

Claude Tessier, Chief Financial Officer, stated: "During the first quarter of fiscal 2020, we once again generated impressive cash flows which we used to invest in our network, repay our debt and return cash to our shareholders through dividends and our share repurchase program. On the expense side, our teams across the network worked diligently on cost containment which yielded a nice sequential improvement resulting in lower cost growth than the previous two quarters. The optimization of our cost base will remain a focus area over the next quarters as we remain committed to our usual cost discipline. I am pleased that these combined efforts have led to the continued increase in our return on capital employed and demonstrated our continual commitment to our customary financial discipline and increasing value for our shareholders."

Significant Items of the First Quarter of Fiscal 2020

  • The rollout of our Circle K brand in Europe was completed during the quarter, while in North America it is progressing steadily. As of July 21, 2019, more than 5,800 stores in North America, including 789 stores acquired from CST, now proudly display our new global brand.
  • On August 7, 2019, subsequent to the end of the quarter, we announced the closing of an investment in Fire & Flower Holdings Corp. ("Fire & Flower"), a leading independent cannabis retailer based in Alberta, Canada. We invested approximately $26.0 million in the form of unsecured convertible debentures to obtain a 9.9% ownership interest in Fire & Flower upon conversion. We have also been issued Common Share purchase warrants, that, if exercised in full in accordance with the terms thereof, would subsequently increase our ownership interest to 50.1%. Through this investment, we aim to combine our expertise in scaling retail stores with Fire & Flower's retail experience and proprietary HiFyreTM digital platform to capitalize on new cannabis markets as they emerge.
  • On May 28, 2019, we repaid, without penalty, $150.0 million of our $300.0 million US-dollar-denominated senior unsecured notes issued on December 14, 2017 and maturing on December 13, 2019. On August 13, 2019, subsequent to the end of the quarter, we repaid, without penalty, the remaining $150.0 million of these notes.
  • During the first quarter of fiscal 2020, we repurchased 764,174 Class B subordinate voting shares under our share repurchase program, for a net amount of $46.2 million. In addition, subsequent to the end of the quarter, we repurchased an additional 740,892 Class B subordinate voting shares, for a net amount of $45.1 million, totaling 1,505,066 Class B subordinate voting shares and $91.3 million since the launch of the program. All shares repurchased were cancelled.
  • During its September 4, 2019 meeting, the Board of Directors approved a two-for-one split of all the Corporation's issued and outstanding Class A multiple-voting shares and Class B subordinate voting shares on record as at September 20, 2019 and payable on September 27, 2019. This share split was approved by regulatory authorities.

Changes in our Network

  • During the first quarter of fiscal 2020, we acquired eight company-operated stores through distinct transactions.
  • During the first quarter of fiscal 2020, we completed the construction of 12 stores and the relocation or reconstruction of 9 stores. As of July 21, 2019, 32 stores were under construction and should open in the upcoming quarters.
  • In May 2019, we closed the first transaction of the asset exchange agreement with CAPL. In this first transaction, 60 Circle K U.S. stores have been exchanged against 17 company-operated stores owned and operated by CAPL and the real estate for 8 properties held by CAPL, for a total value of approximately $58.0 million. Following the exchange transaction, we performed a re-evaluation of our deferred tax assets and liabilities which generated an income tax expense of $4.5 million, of which $3.5 million is attributable to shareholders of the Corporation. The remaining tranches are expected to be completed by the end of the first quarter of calendar year 2020.

Summary of changes in our store network during the first quarter of fiscal 2020

The following table presents certain information regarding changes in our store network over the 12-week period ended July 21, 2019:

 

12-week period ended July 21, 2019
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575
Acquisitions 8 - - - 8
Openings / constructions / additions 29 - 4 24 57
Closures / disposals / withdrawals (35) (64) (20) (23) (142)
Store conversion (3) 6 (3) - -
Number of sites, end of period 9,793 456 1,033 1,216 12,498
CAPL network 1,320
Circle K branded sites under licensing agreements 2,248
Total network 16,066
Number of automated fuel stations included in theperiod‑end figures 981 - 12 - 993

 

New Accounting Standard Adopted by the Corporation

As of April 29, 2019, we have adopted IFRS 16, Leases, which requires lessees to recognize on the balance sheet a lease liability reflecting future lease payments and a right-of-use asset for virtually all lease contracts, except with respect to lease contracts that meet limited exception criteria. As permitted under the specific transition provisions in the standard, we have elected not to restate our comparative figures for the 2019 financial year. The tables below present the estimated pro forma impact of the change in accounting policy on our previously reported results:

 

12-week period ended July 21, 2019
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total 12-week period ended July 22, 2018
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575       (in millions of US dollars)     Pre – IFRS 16 Asreported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16impacts –attributable to shareholders of the Corporation
Acquisitions 8 - - - 8 Revenues 14,786.5 - - 9.0 9.0 14,795.5 3.0
Openings / constructions / additions 29 - 4 24 57 Cost of sales 12,569.4 - - - - 12,569.4 -
Closures / disposals / withdrawals (35) (64) (20) (23) (142) Gross profit 2,217.1 - - 9.0 9.0 2,226.1 3.0
Store conversion (3) 6 (3) - -
Number of sites, end of period 9,793 456 1,033 1,216 12,498 Operating, selling, administrative and general expenses   1,312.5   (88.0)   -   6.0   (82.0)   1,230.5 (82.0)
CAPL network 1,320 Restructuring costs 1.5 - - - - 1.5 -
Circle K branded sites under licensing agreements 2,248 Loss on disposal of property and equipment and other assets   0.2   -   -   -   -   0.2 -  
Total network 16,066 Depreciation, amortization and impairment 301.5 (4.0) 90.0 - 86.0 387.5 81.0
Number of automated fuel stations included in theperiod‑end figures 981 - 12 - 993 Total operating expenses 1,615.7 (92.0) 90.0 6.0 4.0 1,619.7 (1.0)
Operating income 601.4 92.0 (90.0) 3.0 5.0 606.4 4.0
Share of earnings of joint ventures and associated companies     7.1     -     -     -     -     7.1 -
EBITDA 910.0 88.0 - 3.0 91.0 1,001.0 85.0
Financial expenses 79.4 (5.0) 21.0 - 16.0 95.4 14.0
Financial revenues (2.7) - - - - (2.7) -
Foreign exchange loss 1.0 - - - - 1.0 -
Net financial expenses 77.7 (5.0) 21.0 - 16.0 93.7 14.0
Earnings before income taxes 530.8 97.0 (111.0) 3.0 (11.0) 519.8 (10.0)
Income taxes 88.2 25.0 (28.0) 1.0 (2.0) 86.2 (2.0)
Net earnings including non-controlling interests 442.6 72.0 (83.0) 2.0 (9.0) 433.6 (8.0)
Net loss attributable to non-controlling interests 13.0 - 5.0 (4.0) 1.0 14.0 -
Net earnings attributable to shareholders of the Corporation 455.6   72.0   (78.0)   (2.0)   (8.0)   447.6 (8.0)

 

12-week period ended July 21, 2019 52-week period ended April 28, 2019
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total 12-week period ended July 22, 2018       (in millions of US dollars)     Pre – IFRS16 As reported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16 impacts – attributable to shareholders of the Corporation
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575       (in millions of US dollars)     Pre – IFRS 16 Asreported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16impacts –attributable to shareholders of the Corporation Revenues 59,117.6 - - 40.0 40.0 59,157.6 20.0
Acquisitions 8 - - - 8 Revenues 14,786.5 - - 9.0 9.0 14,795.5 3.0 Cost of sales 49,922.7 - - - - 49,922.7 -
Openings / constructions / additions 29 - 4 24 57 Cost of sales 12,569.4 - - - - 12,569.4 - Gross profit 9,194.9 - - 40.0 40.0 9,234.9 20.0
Closures / disposals / withdrawals (35) (64) (20) (23) (142) Gross profit 2,217.1 - - 9.0 9.0 2,226.1 3.0
Store conversion (3) 6 (3) - - Operating, selling, administrativeand general expenses 5,646.1   (390.0)   -   28.0   (362.0)   5,284.1 (361.0)
Number of sites, end of period 9,793 456 1,033 1,216 12,498 Operating, selling, administrative and general expenses   1,312.5   (88.0)   -   6.0   (82.0)   1,230.5 (82.0) Restructuring costs 10.5 - - - - 10.5 -
CAPL network 1,320 Restructuring costs 1.5 - - - - 1.5 - Gain on disposal of property andequipment and other assets (21.3   -   -   -   -   (21.3) -
Circle K branded sites under licensing agreements 2,248 Loss on disposal of property and equipment and other assets   0.2   -   -   -   -   0.2 -   Depreciation, amortization andimpairment 1,070.7 (18.0) 388.0 - 370.0 1,440.7 356.0
Total network 16,066 Depreciation, amortization and impairment 301.5 (4.0) 90.0 - 86.0 387.5 81.0 Total operating expenses 6,706.0 (408.0) 388.0 28.0 8.0 6,714.0 (5.0)
Number of automated fuel stations included in theperiod‑end figures 981 - 12 - 993 Total operating expenses 1,615.7 (92.0) 90.0 6.0 4.0 1,619.7 (1.0) Operating income 2,488.9 408.0 (388.0) 12.0 32.0 2,520.9 25.0
Operating income 601.4 92.0 (90.0) 3.0 5.0 606.4 4.0
Share of earnings of joint ventures and associated companies     23.4     -     -     -     -     23.4 -
Share of earnings of joint ventures and associated companies     7.1     -     -     -     -     7.1 -
EBITDA 3,583.0 390.0 - 12.0 402.0 3,984.0 381.0
EBITDA 910.0 88.0 - 3.0 91.0 1,001.0 85.0
Financial expenses 338.7 (20.0) 90.0 - 70.0 408.7 62.0
Financial expenses 79.4 (5.0) 21.0 - 16.0 95.4 14.0 Financial revenues (13.3) - - - - (13.3) -
Financial revenues (2.7) - - - - (2.7) - Foreign exchange gain (5.3) - - - - (5.3) -
Foreign exchange loss 1.0 - - - - 1.0 - Net financial expenses 320.1 (20.0) 90.0 - 70.0 390.1 62.0
Net financial expenses 77.7 (5.0) 21.0 - 16.0 93.7 14.0 Earnings before income taxes 2,192.2 428.0 (478.0) 12.0 (38.0) 2,154.2 (37.0)
Earnings before income taxes 530.8 97.0 (111.0) 3.0 (11.0) 519.8 (10.0) Income taxes 370.9 108.0 (120.0) 3.0 (9.0) 361.9 (9.0)
Income taxes 88.2 25.0 (28.0) 1.0 (2.0) 86.2 (2.0) Net earnings including non-controlling interests 1,821.3 320.0 (358.0) 9.0 (29.0) 1,792.3 (28.0)
Net earnings including non-controlling interests 442.6 72.0 (83.0) 2.0 (9.0) 433.6 (8.0) Net loss attributable to non-controlling interests 12.6 (3.0) 20.0 (16.0) 1.0 13.6 -
Net loss attributable to non-controlling interests 13.0 - 5.0 (4.0) 1.0 14.0 - Net earnings attributable toshareholders of the Corporation 1,833.9   317.0   (338.0)   (7.0)   (28.0)   1,805.9 (28.0)
Net earnings attributable to shareholders of the Corporation 455.6   72.0   (78.0)   (2.0)   (8.0)   447.6 (8.0)

12-week period ended July 21, 2019 52-week period ended April 28, 2019 (1)  Depreciation and interest expenses are based on our assessment of Fiscal 2020 impact.
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total 12-week period ended July 22, 2018       (in millions of US dollars)     Pre – IFRS16 As reported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16 impacts – attributable to shareholders of the Corporation
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575       (in millions of US dollars)     Pre – IFRS 16 Asreported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16impacts –attributable to shareholders of the Corporation Revenues 59,117.6 - - 40.0 40.0 59,157.6 20.0
Acquisitions 8 - - - 8 Revenues 14,786.5 - - 9.0 9.0 14,795.5 3.0 Cost of sales 49,922.7 - - - - 49,922.7 -
Openings / constructions / additions 29 - 4 24 57 Cost of sales 12,569.4 - - - - 12,569.4 - Gross profit 9,194.9 - - 40.0 40.0 9,234.9 20.0
Closures / disposals / withdrawals (35) (64) (20) (23) (142) Gross profit 2,217.1 - - 9.0 9.0 2,226.1 3.0
Store conversion (3) 6 (3) - - Operating, selling, administrativeand general expenses 5,646.1   (390.0)   -   28.0   (362.0)   5,284.1 (361.0)
Number of sites, end of period 9,793 456 1,033 1,216 12,498 Operating, selling, administrative and general expenses   1,312.5   (88.0)   -   6.0   (82.0)   1,230.5 (82.0) Restructuring costs 10.5 - - - - 10.5 -
CAPL network 1,320 Restructuring costs 1.5 - - - - 1.5 - Gain on disposal of property andequipment and other assets (21.3   -   -   -   -   (21.3) -
Circle K branded sites under licensing agreements 2,248 Loss on disposal of property and equipment and other assets   0.2   -   -   -   -   0.2 -   Depreciation, amortization andimpairment 1,070.7 (18.0) 388.0 - 370.0 1,440.7 356.0
Total network 16,066 Depreciation, amortization and impairment 301.5 (4.0) 90.0 - 86.0 387.5 81.0 Total operating expenses 6,706.0 (408.0) 388.0 28.0 8.0 6,714.0 (5.0)
Number of automated fuel stations included in theperiod‑end figures 981 - 12 - 993 Total operating expenses 1,615.7 (92.0) 90.0 6.0 4.0 1,619.7 (1.0) Operating income 2,488.9 408.0 (388.0) 12.0 32.0 2,520.9 25.0
Operating income 601.4 92.0 (90.0) 3.0 5.0 606.4 4.0
Share of earnings of joint ventures and associated companies     23.4     -     -     -     -     23.4 -
Share of earnings of joint ventures and associated companies     7.1     -     -     -     -     7.1 -
EBITDA 3,583.0 390.0 - 12.0 402.0 3,984.0 381.0
EBITDA 910.0 88.0 - 3.0 91.0 1,001.0 85.0
Financial expenses 338.7 (20.0) 90.0 - 70.0 408.7 62.0
Financial expenses 79.4 (5.0) 21.0 - 16.0 95.4 14.0 Financial revenues (13.3) - - - - (13.3) -
Financial revenues (2.7) - - - - (2.7) - Foreign exchange gain (5.3) - - - - (5.3) -
Foreign exchange loss 1.0 - - - - 1.0 - Net financial expenses 320.1 (20.0) 90.0 - 70.0 390.1 62.0
Net financial expenses 77.7 (5.0) 21.0 - 16.0 93.7 14.0 Earnings before income taxes 2,192.2 428.0 (478.0) 12.0 (38.0) 2,154.2 (37.0)
Earnings before income taxes 530.8 97.0 (111.0) 3.0 (11.0) 519.8 (10.0) Income taxes 370.9 108.0 (120.0) 3.0 (9.0) 361.9 (9.0)
Income taxes 88.2 25.0 (28.0) 1.0 (2.0) 86.2 (2.0) Net earnings including non-controlling interests 1,821.3 320.0 (358.0) 9.0 (29.0) 1,792.3 (28.0)
Net earnings including non-controlling interests 442.6 72.0 (83.0) 2.0 (9.0) 433.6 (8.0) Net loss attributable to non-controlling interests 12.6 (3.0) 20.0 (16.0) 1.0 13.6 -
Net loss attributable to non-controlling interests 13.0 - 5.0 (4.0) 1.0 14.0 - Net earnings attributable toshareholders of the Corporation 1,833.9   317.0   (338.0)   (7.0)   (28.0)   1,805.9 (28.0)
Net earnings attributable to shareholders of the Corporation 455.6   72.0   (78.0)   (2.0)   (8.0)   447.6 (8.0)

 

In order to facilitate the understanding of our financial performance, we have adjusted some of our previously reported performance measures. All adjustments related to IFRS 16 are clearly identified and are based on the calculations presented in the tables above.

The adoption of the new accounting standard affected the following specific items in the opening balance sheet on April 29, 2019:

 

12-week period ended July 21, 2019 52-week period ended April 28, 2019 (1)  Depreciation and interest expenses are based on our assessment of Fiscal 2020 impact. (in millions of US dollars) Balance,beginning of period Adoption of IFRS 16 Adjusted balance,beginning of period
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total 12-week period ended July 22, 2018       (in millions of US dollars)     Pre – IFRS16 As reported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16 impacts – attributable to shareholders of the Corporation
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575       (in millions of US dollars)     Pre – IFRS 16 Asreported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16impacts –attributable to shareholders of the Corporation Revenues 59,117.6 - - 40.0 40.0 59,157.6 20.0 Assets
Acquisitions 8 - - - 8 Revenues 14,786.5 - - 9.0 9.0 14,795.5 3.0 Cost of sales 49,922.7 - - - - 49,922.7 - Current assets
Openings / constructions / additions 29 - 4 24 57 Cost of sales 12,569.4 - - - - 12,569.4 - Gross profit 9,194.9 - - 40.0 40.0 9,234.9 20.0 Prepaid expenses 83.7 (26.4) 57.3
Closures / disposals / withdrawals (35) (64) (20) (23) (142) Gross profit 2,217.1 - - 9.0 9.0 2,226.1 3.0 Property and equipment 11,129.9 (306.5) 10,823.4
Store conversion (3) 6 (3) - - Operating, selling, administrativeand general expenses 5,646.1   (390.0)   -   28.0   (362.0)   5,284.1 (361.0) Right-of-use assets - 2,835.0 2,835.0
Number of sites, end of period 9,793 456 1,033 1,216 12,498 Operating, selling, administrative and general expenses   1,312.5   (88.0)   -   6.0   (82.0)   1,230.5 (82.0) Restructuring costs 10.5 - - - - 10.5 - Intangible assets 944.4 (104.5) 839.9
CAPL network 1,320 Restructuring costs 1.5 - - - - 1.5 - Gain on disposal of property andequipment and other assets (21.3   -   -   -   -   (21.3) - Other assets 306.6 27.7 334.3
Circle K branded sites under licensing agreements 2,248 Loss on disposal of property and equipment and other assets   0.2   -   -   -   -   0.2 -   Depreciation, amortization andimpairment 1,070.7 (18.0) 388.0 - 370.0 1,440.7 356.0 Total assets 22,607.7 2,425.3 25,033.0
Total network 16,066 Depreciation, amortization and impairment 301.5 (4.0) 90.0 - 86.0 387.5 81.0 Total operating expenses 6,706.0 (408.0) 388.0 28.0 8.0 6,714.0 (5.0)
Number of automated fuel stations included in theperiod‑end figures 981 - 12 - 993 Total operating expenses 1,615.7 (92.0) 90.0 6.0 4.0 1,619.7 (1.0) Operating income 2,488.9 408.0 (388.0) 12.0 32.0 2,520.9 25.0 Liabilities
Operating income 601.4 92.0 (90.0) 3.0 5.0 606.4 4.0 Current liabilities
Share of earnings of joint ventures and associated companies     23.4     -     -     -     -     23.4 - Accounts payable and accrued liabilities 3,917.1 (24.6) 3,892.5
Share of earnings of joint ventures and associated companies     7.1     -     -     -     -     7.1 - Current portion of long-term debt 1,310.7 (40.5) 1,270.2
EBITDA 3,583.0 390.0 - 12.0 402.0 3,984.0 381.0 Current portion of lease liabilities - 382.9 382.9
EBITDA 910.0 88.0 - 3.0 91.0 1,001.0 85.0 Long-term debt 5,640.7 (287.8) 5,352.9
Financial expenses 338.7 (20.0) 90.0 - 70.0 408.7 62.0 Lease liabilities - 2,569.3 2,569.3
Financial expenses 79.4 (5.0) 21.0 - 16.0 95.4 14.0 Financial revenues (13.3) - - - - (13.3) - Long-term provisions 590.1 (3.0) 587.1
Financial revenues (2.7) - - - - (2.7) - Foreign exchange gain (5.3) - - - - (5.3) - Deferred credits and other liabilities 349.0 (158.3) 190.7
Foreign exchange loss 1.0 - - - - 1.0 - Net financial expenses 320.1 (20.0) 90.0 - 70.0 390.1 62.0 Deferred income taxes 1,037.1 (3.2) 1,033.9
Net financial expenses 77.7 (5.0) 21.0 - 16.0 93.7 14.0 Earnings before income taxes 2,192.2 428.0 (478.0) 12.0 (38.0) 2,154.2 (37.0) Total liabilities 13,426.6 2,434.8 15,861.4
Earnings before income taxes 530.8 97.0 (111.0) 3.0 (11.0) 519.8 (10.0) Income taxes 370.9 108.0 (120.0) 3.0 (9.0) 361.9 (9.0)
Income taxes 88.2 25.0 (28.0) 1.0 (2.0) 86.2 (2.0) Net earnings including non-controlling interests 1,821.3 320.0 (358.0) 9.0 (29.0) 1,792.3 (28.0) Equity
Net earnings including non-controlling interests 442.6 72.0 (83.0) 2.0 (9.0) 433.6 (8.0) Net loss attributable to non-controlling interests 12.6 (3.0) 20.0 (16.0) 1.0 13.6 - Retained earnings 9,053.5 (9.5) 9,044.0
Net loss attributable to non-controlling interests 13.0 - 5.0 (4.0) 1.0 14.0 - Net earnings attributable toshareholders of the Corporation 1,833.9   317.0   (338.0)   (7.0)   (28.0)   1,805.9 (28.0) Total equity 9,181.1 (9.5) 9,171.6
Net earnings attributable to shareholders of the Corporation 455.6   72.0   (78.0)   (2.0)   (8.0)   447.6 (8.0)

 

For further information, refer to our Q1 2020 unaudited interim condensed consolidated financial statements.

Exchange Rate Data

We use the US dollar as our reporting currency, which provides more relevant information given the predominance of our operations in the United States.

The following table sets forth information about exchange rates based upon closing rates expressed as US dollars per comparative currency unit:

 

12-week period ended July 21, 2019 52-week period ended April 28, 2019 (1)  Depreciation and interest expenses are based on our assessment of Fiscal 2020 impact. (in millions of US dollars) Balance,beginning of period Adoption of IFRS 16 Adjusted balance,beginning of period 12-week periods ended
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total 12-week period ended July 22, 2018       (in millions of US dollars)     Pre – IFRS16 As reported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16 impacts – attributable to shareholders of the Corporation July 21, 2019 July 22, 2018
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575       (in millions of US dollars)     Pre – IFRS 16 Asreported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16impacts –attributable to shareholders of the Corporation Revenues 59,117.6 - - 40.0 40.0 59,157.6 20.0 Assets Average for period
Acquisitions 8 - - - 8 Revenues 14,786.5 - - 9.0 9.0 14,795.5 3.0 Cost of sales 49,922.7 - - - - 49,922.7 - Current assets Canadian dollar 0.7517 0.7673
Openings / constructions / additions 29 - 4 24 57 Cost of sales 12,569.4 - - - - 12,569.4 - Gross profit 9,194.9 - - 40.0 40.0 9,234.9 20.0 Prepaid expenses 83.7 (26.4) 57.3 Norwegian krone 0.1155 0.1234
Closures / disposals / withdrawals (35) (64) (20) (23) (142) Gross profit 2,217.1 - - 9.0 9.0 2,226.1 3.0 Property and equipment 11,129.9 (306.5) 10,823.4 Swedish krone 0.1055 0.1138
Store conversion (3) 6 (3) - - Operating, selling, administrativeand general expenses 5,646.1   (390.0)   -   28.0   (362.0)   5,284.1 (361.0) Right-of-use assets - 2,835.0 2,835.0 Danish krone 0.1505 0.1575
Number of sites, end of period 9,793 456 1,033 1,216 12,498 Operating, selling, administrative and general expenses   1,312.5   (88.0)   -   6.0   (82.0)   1,230.5 (82.0) Restructuring costs 10.5 - - - - 10.5 - Intangible assets 944.4 (104.5) 839.9 Zloty 0.2629 0.2726
CAPL network 1,320 Restructuring costs 1.5 - - - - 1.5 - Gain on disposal of property andequipment and other assets (21.3   -   -   -   -   (21.3) - Other assets 306.6 27.7 334.3 Euro 1.2703 1.1734
Circle K branded sites under licensing agreements 2,248 Loss on disposal of property and equipment and other assets   0.2   -   -   -   -   0.2 -   Depreciation, amortization andimpairment 1,070.7 (18.0) 388.0 - 370.0 1,440.7 356.0 Total assets 22,607.7 2,425.3 25,033.0 Ruble 0.0156 0.0160
Total network 16,066 Depreciation, amortization and impairment 301.5 (4.0) 90.0 - 86.0 387.5 81.0 Total operating expenses 6,706.0 (408.0) 388.0 28.0 8.0 6,714.0 (5.0)
Number of automated fuel stations included in theperiod‑end figures 981 - 12 - 993 Total operating expenses 1,615.7 (92.0) 90.0 6.0 4.0 1,619.7 (1.0) Operating income 2,488.9 408.0 (388.0) 12.0 32.0 2,520.9 25.0 Liabilities
Operating income 601.4 92.0 (90.0) 3.0 5.0 606.4 4.0 Current liabilities
Share of earnings of joint ventures and associated companies     23.4     -     -     -     -     23.4 - Accounts payable and accrued liabilities 3,917.1 (24.6) 3,892.5
Share of earnings of joint ventures and associated companies     7.1     -     -     -     -     7.1 - Current portion of long-term debt 1,310.7 (40.5) 1,270.2
EBITDA 3,583.0 390.0 - 12.0 402.0 3,984.0 381.0 Current portion of lease liabilities - 382.9 382.9
EBITDA 910.0 88.0 - 3.0 91.0 1,001.0 85.0 Long-term debt 5,640.7 (287.8) 5,352.9
Financial expenses 338.7 (20.0) 90.0 - 70.0 408.7 62.0 Lease liabilities - 2,569.3 2,569.3
Financial expenses 79.4 (5.0) 21.0 - 16.0 95.4 14.0 Financial revenues (13.3) - - - - (13.3) - Long-term provisions 590.1 (3.0) 587.1
Financial revenues (2.7) - - - - (2.7) - Foreign exchange gain (5.3) - - - - (5.3) - Deferred credits and other liabilities 349.0 (158.3) 190.7
Foreign exchange loss 1.0 - - - - 1.0 - Net financial expenses 320.1 (20.0) 90.0 - 70.0 390.1 62.0 Deferred income taxes 1,037.1 (3.2) 1,033.9
Net financial expenses 77.7 (5.0) 21.0 - 16.0 93.7 14.0 Earnings before income taxes 2,192.2 428.0 (478.0) 12.0 (38.0) 2,154.2 (37.0) Total liabilities 13,426.6 2,434.8 15,861.4
Earnings before income taxes 530.8 97.0 (111.0) 3.0 (11.0) 519.8 (10.0) Income taxes 370.9 108.0 (120.0) 3.0 (9.0) 361.9 (9.0)
Income taxes 88.2 25.0 (28.0) 1.0 (2.0) 86.2 (2.0) Net earnings including non-controlling interests 1,821.3 320.0 (358.0) 9.0 (29.0) 1,792.3 (28.0) Equity
Net earnings including non-controlling interests 442.6 72.0 (83.0) 2.0 (9.0) 433.6 (8.0) Net loss attributable to non-controlling interests 12.6 (3.0) 20.0 (16.0) 1.0 13.6 - Retained earnings 9,053.5 (9.5) 9,044.0
Net loss attributable to non-controlling interests 13.0 - 5.0 (4.0) 1.0 14.0 - Net earnings attributable toshareholders of the Corporation 1,833.9   317.0   (338.0)   (7.0)   (28.0)   1,805.9 (28.0) Total equity 9,181.1 (9.5) 9,171.6
Net earnings attributable to shareholders of the Corporation 455.6   72.0   (78.0)   (2.0)   (8.0)   447.6 (8.0)

 

Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020

The following table highlights certain information regarding our operations for the 12-week periods ended July 21, 2019, and July 22, 2018. CAPL refers to CrossAmerica Partners LP.

 

12-week period ended July 21, 2019 52-week period ended April 28, 2019 (1)  Depreciation and interest expenses are based on our assessment of Fiscal 2020 impact. (in millions of US dollars) Balance,beginning of period Adoption of IFRS 16 Adjusted balance,beginning of period 12-week periods ended 12-week periods ended
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total 12-week period ended July 22, 2018       (in millions of US dollars)     Pre – IFRS16 As reported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16 impacts – attributable to shareholders of the Corporation July 21, 2019 July 22, 2018 (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation %
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575       (in millions of US dollars)     Pre – IFRS 16 Asreported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16impacts –attributable to shareholders of the Corporation Revenues 59,117.6 - - 40.0 40.0 59,157.6 20.0 Assets Average for period Statement of Operations Data:
Acquisitions 8 - - - 8 Revenues 14,786.5 - - 9.0 9.0 14,795.5 3.0 Cost of sales 49,922.7 - - - - 49,922.7 - Current assets Canadian dollar 0.7517 0.7673 Merchandise and service revenues(1):
Openings / constructions / additions 29 - 4 24 57 Cost of sales 12,569.4 - - - - 12,569.4 - Gross profit 9,194.9 - - 40.0 40.0 9,234.9 20.0 Prepaid expenses 83.7 (26.4) 57.3 Norwegian krone 0.1155 0.1234 United States 2,657.8 2,609.1 1.9
Closures / disposals / withdrawals (35) (64) (20) (23) (142) Gross profit 2,217.1 - - 9.0 9.0 2,226.1 3.0 Property and equipment 11,129.9 (306.5) 10,823.4 Swedish krone 0.1055 0.1138 Europe 353.1 368.7 (4.2)
Store conversion (3) 6 (3) - - Operating, selling, administrativeand general expenses 5,646.1   (390.0)   -   28.0   (362.0)   5,284.1 (361.0) Right-of-use assets - 2,835.0 2,835.0 Danish krone 0.1505 0.1575 Canada 575.6 544.4 5.7
Number of sites, end of period 9,793 456 1,033 1,216 12,498 Operating, selling, administrative and general expenses   1,312.5   (88.0)   -   6.0   (82.0)   1,230.5 (82.0) Restructuring costs 10.5 - - - - 10.5 - Intangible assets 944.4 (104.5) 839.9 Zloty 0.2629 0.2726 CAPL 19.8 26.3 (24.7)
CAPL network 1,320 Restructuring costs 1.5 - - - - 1.5 - Gain on disposal of property andequipment and other assets (21.3   -   -   -   -   (21.3) - Other assets 306.6 27.7 334.3 Euro 1.2703 1.1734 Elimination of intercompany transactions with CAPL (0.5) (0.7) (28.6)
Circle K branded sites under licensing agreements 2,248 Loss on disposal of property and equipment and other assets   0.2   -   -   -   -   0.2 -   Depreciation, amortization andimpairment 1,070.7 (18.0) 388.0 - 370.0 1,440.7 356.0 Total assets 22,607.7 2,425.3 25,033.0 Ruble 0.0156 0.0160 Total merchandise and service revenues 3,605.8 3,547.8 1.6
Total network 16,066 Depreciation, amortization and impairment 301.5 (4.0) 90.0 - 86.0 387.5 81.0 Total operating expenses 6,706.0 (408.0) 388.0 28.0 8.0 6,714.0 (5.0) Road transportation fuel revenues:
Number of automated fuel stations included in theperiod‑end figures 981 - 12 - 993 Total operating expenses 1,615.7 (92.0) 90.0 6.0 4.0 1,619.7 (1.0) Operating income 2,488.9 408.0 (388.0) 12.0 32.0 2,520.9 25.0 Liabilities United States 6,801.5 7,159.5 (5.0)
Operating income 601.4 92.0 (90.0) 3.0 5.0 606.4 4.0 Current liabilities Europe 1,919.8 1,952.5 (1.7)
Share of earnings of joint ventures and associated companies     23.4     -     -     -     -     23.4 - Accounts payable and accrued liabilities 3,917.1 (24.6) 3,892.5 Canada 1,201.4 1,291.8 (7.0)
Share of earnings of joint ventures and associated companies     7.1     -     -     -     -     7.1 - Current portion of long-term debt 1,310.7 (40.5) 1,270.2 CAPL 567.4 633.7 (10.5)
EBITDA 3,583.0 390.0 - 12.0 402.0 3,984.0 381.0 Current portion of lease liabilities - 382.9 382.9 Elimination of intercompany transactions with CAPL (121.4) (140.3) (13.5)
EBITDA 910.0 88.0 - 3.0 91.0 1,001.0 85.0 Long-term debt 5,640.7 (287.8) 5,352.9 Total road transportation fuel revenues 10,368.7 10,897.2 (4.8)
Financial expenses 338.7 (20.0) 90.0 - 70.0 408.7 62.0 Lease liabilities - 2,569.3 2,569.3 Other revenues(2):
Financial expenses 79.4 (5.0) 21.0 - 16.0 95.4 14.0 Financial revenues (13.3) - - - - (13.3) - Long-term provisions 590.1 (3.0) 587.1 United States 6.9 5.4 27.8
Financial revenues (2.7) - - - - (2.7) - Foreign exchange gain (5.3) - - - - (5.3) - Deferred credits and other liabilities 349.0 (158.3) 190.7 Europe 155.1 319.0 (51.4)
Foreign exchange loss 1.0 - - - - 1.0 - Net financial expenses 320.1 (20.0) 90.0 - 70.0 390.1 62.0 Deferred income taxes 1,037.1 (3.2) 1,033.9 Canada 4.8 6.2 (22.6)
Net financial expenses 77.7 (5.0) 21.0 - 16.0 93.7 14.0 Earnings before income taxes 2,192.2 428.0 (478.0) 12.0 (38.0) 2,154.2 (37.0) Total liabilities 13,426.6 2,434.8 15,861.4 CAPL 25.8 15.2 69.7
Earnings before income taxes 530.8 97.0 (111.0) 3.0 (11.0) 519.8 (10.0) Income taxes 370.9 108.0 (120.0) 3.0 (9.0) 361.9 (9.0) Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7)
Income taxes 88.2 25.0 (28.0) 1.0 (2.0) 86.2 (2.0) Net earnings including non-controlling interests 1,821.3 320.0 (358.0) 9.0 (29.0) 1,792.3 (28.0) Equity Total other revenues 188.5 341.5 (44.8)
Net earnings including non-controlling interests 442.6 72.0 (83.0) 2.0 (9.0) 433.6 (8.0) Net loss attributable to non-controlling interests 12.6 (3.0) 20.0 (16.0) 1.0 13.6 - Retained earnings 9,053.5 (9.5) 9,044.0 Total revenues 14,163.0 14,786.5 (4.2)
Net loss attributable to non-controlling interests 13.0 - 5.0 (4.0) 1.0 14.0 - Net earnings attributable toshareholders of the Corporation 1,833.9   317.0   (338.0)   (7.0)   (28.0)   1,805.9 (28.0) Total equity 9,181.1 (9.5) 9,171.6 Merchandise and service gross profit(1):
Net earnings attributable to shareholders of the Corporation 455.6   72.0   (78.0)   (2.0)   (8.0)   447.6 (8.0) United States 904.9 874.8 3.4
Europe 146.5 156.3 (6.3)
Canada 189.5 187.9 0.9
CAPL 4.6 6.4 (28.1)
Elimination of intercompany transactions with CAPL (0.5) (0.6) (16.7)
Total merchandise and service gross profit 1,245.0 1,224.8 1.6
Road transportation fuel gross profit:
United States 672.5 560.0 20.1
Europe 222.2 246.5 (9.9)
Canada 81.5 100.0 (18.5)
CAPL 23.1 26.6 (13.2)
Total road transportation fuel gross profit 999.3 933.1 7.1
Other revenues gross profit(2):
United States 6.9 5.3 30.2
Europe 31.3 36.8 (14.9)
Canada 4.8 6.2 (22.6)
CAPL 25.8 15.2 69.7
Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7)
Total other revenues gross profit 64.7 59.2 9.3
Total gross profit 2,309.0 2,217.1 4.1
Operating, selling, administrative and general expenses
Excluding CAPL 1,224.3 1,294.7 (5.4)
CAPL 20.2 22.6 (10.6)
Elimination of intercompany transactions with CAPL (4.4) (4.8) (8.3)
Total Operating, selling, administrative and general expenses 1,240.1 1,312.5 (5.5
Restructuring costs - 1.5 (100.0)
Loss on disposal of property and equipment and other assets 10.1 0.2 4,950.0
Depreciation, amortization and impairment
Excluding CAPL 284.2 213.2 33.3
CAPL 22.9 88.3 (74.1)
Total depreciation, amortization and impairment 307.1 301.5 1.9
Operating income
Excluding CAPL 743.0 671.3 10.7
CAPL 8.9 (69.8 (112.8)
Elimination of intercompany transactions with CAPL (0.2) (0.1) 100.0
Total operating income 751.7 601.4 25.0
Net financial expenses 87.0 77.7 0.12
Net earnings including non-controlling interests 536.0 442.6 21.1
Net loss attributable to non-controlling interests 2.8 13.0 (78.5)
Net earnings attributable to shareholders of the Corporation 538.8 455.6 18.3
Per Share Data:
Basic net earnings per share (dollars per share) 0.96 0.81 18.5
Diluted net earnings per share (dollars per share) 0.95 0.81 17.3
Adjusted diluted net earnings per share (dollars per share)(13) 0.97 0.87 11.5

 

12-week period ended July 21, 2019 52-week period ended April 28, 2019 (1)  Depreciation and interest expenses are based on our assessment of Fiscal 2020 impact. (in millions of US dollars) Balance,beginning of period Adoption of IFRS 16 Adjusted balance,beginning of period 12-week periods ended 12-week periods ended 12-week periods ended
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total 12-week period ended July 22, 2018       (in millions of US dollars)     Pre – IFRS16 As reported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16 impacts – attributable to shareholders of the Corporation July 21, 2019 July 22, 2018 (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation %
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575       (in millions of US dollars)     Pre – IFRS 16 Asreported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16impacts –attributable to shareholders of the Corporation Revenues 59,117.6 - - 40.0 40.0 59,157.6 20.0 Assets Average for period Statement of Operations Data: Other Operating Data – excluding CAPL:
Acquisitions 8 - - - 8 Revenues 14,786.5 - - 9.0 9.0 14,795.5 3.0 Cost of sales 49,922.7 - - - - 49,922.7 - Current assets Canadian dollar 0.7517 0.7673 Merchandise and service revenues(1): Merchandise and service gross margin(1):
Openings / constructions / additions 29 - 4 24 57 Cost of sales 12,569.4 - - - - 12,569.4 - Gross profit 9,194.9 - - 40.0 40.0 9,234.9 20.0 Prepaid expenses 83.7 (26.4) 57.3 Norwegian krone 0.1155 0.1234 United States 2,657.8 2,609.1 1.9 Consolidated 34.6% 34.6% -
Closures / disposals / withdrawals (35) (64) (20) (23) (142) Gross profit 2,217.1 - - 9.0 9.0 2,226.1 3.0 Property and equipment 11,129.9 (306.5) 10,823.4 Swedish krone 0.1055 0.1138 Europe 353.1 368.7 (4.2) United States 34.0% 33.5% 0.5
Store conversion (3) 6 (3) - - Operating, selling, administrativeand general expenses 5,646.1   (390.0)   -   28.0   (362.0)   5,284.1 (361.0) Right-of-use assets - 2,835.0 2,835.0 Danish krone 0.1505 0.1575 Canada 575.6 544.4 5.7 Europe 41.5% 42.4% (0.9)
Number of sites, end of period 9,793 456 1,033 1,216 12,498 Operating, selling, administrative and general expenses   1,312.5   (88.0)   -   6.0   (82.0)   1,230.5 (82.0) Restructuring costs 10.5 - - - - 10.5 - Intangible assets 944.4 (104.5) 839.9 Zloty 0.2629 0.2726 CAPL 19.8 26.3 (24.7) Canada 32.9% 34.5% (1.6)
CAPL network 1,320 Restructuring costs 1.5 - - - - 1.5 - Gain on disposal of property andequipment and other assets (21.3   -   -   -   -   (21.3) - Other assets 306.6 27.7 334.3 Euro 1.2703 1.1734 Elimination of intercompany transactions with CAPL (0.5) (0.7) (28.6) Growth of same-store merchandise revenues(3):
Circle K branded sites under licensing agreements 2,248 Loss on disposal of property and equipment and other assets   0.2   -   -   -   -   0.2 -   Depreciation, amortization andimpairment 1,070.7 (18.0) 388.0 - 370.0 1,440.7 356.0 Total assets 22,607.7 2,425.3 25,033.0 Ruble 0.0156 0.0160 Total merchandise and service revenues 3,605.8 3,547.8 1.6 United States(4) 2.5% 4.2% (1.7)
Total network 16,066 Depreciation, amortization and impairment 301.5 (4.0) 90.0 - 86.0 387.5 81.0 Total operating expenses 6,706.0 (408.0) 388.0 28.0 8.0 6,714.0 (5.0) Road transportation fuel revenues: Europe 0.7% 7.3% (6.6)
Number of automated fuel stations included in theperiod‑end figures 981 - 12 - 993 Total operating expenses 1,615.7 (92.0) 90.0 6.0 4.0 1,619.7 (1.0) Operating income 2,488.9 408.0 (388.0) 12.0 32.0 2,520.9 25.0 Liabilities United States 6,801.5 7,159.5 (5.0) Canada(4) 0.3% 6.6% (6.3)
Operating income 601.4 92.0 (90.0) 3.0 5.0 606.4 4.0 Current liabilities Europe 1,919.8 1,952.5 (1.7) Road transportation fuel gross margin:
Share of earnings of joint ventures and associated companies     23.4     -     -     -     -     23.4 - Accounts payable and accrued liabilities 3,917.1 (24.6) 3,892.5 Canada 1,201.4 1,291.8 (7.0) United States (cents per gallon)(4) 26.86 22.70 18.3
Share of earnings of joint ventures and associated companies     7.1     -     -     -     -     7.1 - Current portion of long-term debt 1,310.7 (40.5) 1,270.2 CAPL 567.4 633.7 (10.5) Europe (cents per liter) 8.44 9.21 (8.4)
EBITDA 3,583.0 390.0 - 12.0 402.0 3,984.0 381.0 Current portion of lease liabilities - 382.9 382.9 Elimination of intercompany transactions with CAPL (121.4) (140.3) (13.5) Canada (CA cents per liter)(4) 7.40 8.91 (16.9)
EBITDA 910.0 88.0 - 3.0 91.0 1,001.0 85.0 Long-term debt 5,640.7 (287.8) 5,352.9 Total road transportation fuel revenues 10,368.7 10,897.2 (4.8) Total volume of road transportation fuel sold:
Financial expenses 338.7 (20.0) 90.0 - 70.0 408.7 62.0 Lease liabilities - 2,569.3 2,569.3 Other revenues(2): United States (millions of gallons) 2,590.6 2,574.6 0.6
Financial expenses 79.4 (5.0) 21.0 - 16.0 95.4 14.0 Financial revenues (13.3) - - - - (13.3) - Long-term provisions 590.1 (3.0) 587.1 United States 6.9 5.4 27.8 Europe (millions of liters) 2,633.6 2,676.4 (1.6)
Financial revenues (2.7) - - - - (2.7) - Foreign exchange gain (5.3) - - - - (5.3) - Deferred credits and other liabilities 349.0 (158.3) 190.7 Europe 155.1 319.0 (51.4) Canada (millions of liters) 1,472.6 1,469.2 0.2
Foreign exchange loss 1.0 - - - - 1.0 - Net financial expenses 320.1 (20.0) 90.0 - 70.0 390.1 62.0 Deferred income taxes 1,037.1 (3.2) 1,033.9 Canada 4.8 6.2 (22.6) Growth of (decrease in) same-store road transportation fuel volume(4):
Net financial expenses 77.7 (5.0) 21.0 - 16.0 93.7 14.0 Earnings before income taxes 2,192.2 428.0 (478.0) 12.0 (38.0) 2,154.2 (37.0) Total liabilities 13,426.6 2,434.8 15,861.4 CAPL 25.8 15.2 69.7 United States 0.6% 0.6% -
Earnings before income taxes 530.8 97.0 (111.0) 3.0 (11.0) 519.8 (10.0) Income taxes 370.9 108.0 (120.0) 3.0 (9.0) 361.9 (9.0) Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7) Europe (1.6%) (0.1%) (1.5)
Income taxes 88.2 25.0 (28.0) 1.0 (2.0) 86.2 (2.0) Net earnings including non-controlling interests 1,821.3 320.0 (358.0) 9.0 (29.0) 1,792.3 (28.0) Equity Total other revenues 188.5 341.5 (44.8) Canada 0.4% (3.3%) 3.7
Net earnings including non-controlling interests 442.6 72.0 (83.0) 2.0 (9.0) 433.6 (8.0) Net loss attributable to non-controlling interests 12.6 (3.0) 20.0 (16.0) 1.0 13.6 - Retained earnings 9,053.5 (9.5) 9,044.0 Total revenues 14,163.0 14,786.5 (4.2)
Net loss attributable to non-controlling interests 13.0 - 5.0 (4.0) 1.0 14.0 - Net earnings attributable toshareholders of the Corporation 1,833.9   317.0   (338.0)   (7.0)   (28.0)   1,805.9 (28.0) Total equity 9,181.1 (9.5) 9,171.6 Merchandise and service gross profit(1):
Net earnings attributable to shareholders of the Corporation 455.6   72.0   (78.0)   (2.0)   (8.0)   447.6 (8.0) United States 904.9 874.8 3.4
Europe 146.5 156.3 (6.3)
Canada 189.5 187.9 0.9
CAPL 4.6 6.4 (28.1)
Elimination of intercompany transactions with CAPL (0.5) (0.6) (16.7)
Total merchandise and service gross profit 1,245.0 1,224.8 1.6
Road transportation fuel gross profit:
United States 672.5 560.0 20.1
Europe 222.2 246.5 (9.9)
Canada 81.5 100.0 (18.5)
CAPL 23.1 26.6 (13.2)
Total road transportation fuel gross profit 999.3 933.1 7.1
Other revenues gross profit(2):
United States 6.9 5.3 30.2
Europe 31.3 36.8 (14.9)
Canada 4.8 6.2 (22.6)
CAPL 25.8 15.2 69.7
Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7)
Total other revenues gross profit 64.7 59.2 9.3
Total gross profit 2,309.0 2,217.1 4.1
Operating, selling, administrative and general expenses
Excluding CAPL 1,224.3 1,294.7 (5.4)
CAPL 20.2 22.6 (10.6)
Elimination of intercompany transactions with CAPL (4.4) (4.8) (8.3)
Total Operating, selling, administrative and general expenses 1,240.1 1,312.5 (5.5
Restructuring costs - 1.5 (100.0)
Loss on disposal of property and equipment and other assets 10.1 0.2 4,950.0
Depreciation, amortization and impairment
Excluding CAPL 284.2 213.2 33.3
CAPL 22.9 88.3 (74.1)
Total depreciation, amortization and impairment 307.1 301.5 1.9
Operating income
Excluding CAPL 743.0 671.3 10.7
CAPL 8.9 (69.8 (112.8)
Elimination of intercompany transactions with CAPL (0.2) (0.1) 100.0
Total operating income 751.7 601.4 25.0
Net financial expenses 87.0 77.7 0.12
Net earnings including non-controlling interests 536.0 442.6 21.1
Net loss attributable to non-controlling interests 2.8 13.0 (78.5)
Net earnings attributable to shareholders of the Corporation 538.8 455.6 18.3
Per Share Data:
Basic net earnings per share (dollars per share) 0.96 0.81 18.5
Diluted net earnings per share (dollars per share) 0.95 0.81 17.3
Adjusted diluted net earnings per share (dollars per share)(13) 0.97 0.87 11.5

 

12-week period ended July 21, 2019 52-week period ended April 28, 2019 (1)  Depreciation and interest expenses are based on our assessment of Fiscal 2020 impact. (in millions of US dollars) Balance,beginning of period Adoption of IFRS 16 Adjusted balance,beginning of period 12-week periods ended 12-week periods ended 12-week periods ended (in millions of US dollars, unless otherwise stated) July 21, 2019 April 28, 2019 Variation $
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total 12-week period ended July 22, 2018       (in millions of US dollars)     Pre – IFRS16 As reported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16 impacts – attributable to shareholders of the Corporation July 21, 2019 July 22, 2018 (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % Balance Sheet Data(5):
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575       (in millions of US dollars)     Pre – IFRS 16 Asreported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16impacts –attributable to shareholders of the Corporation Revenues 59,117.6 - - 40.0 40.0 59,157.6 20.0 Assets Average for period Statement of Operations Data: Other Operating Data – excluding CAPL: Total assets (including $1.3 billion and $1.1 billion for CAPL as at July 21, 2019 and as at April 28, 2019, respectively) 25,431.6 25,033.0 398.6
Acquisitions 8 - - - 8 Revenues 14,786.5 - - 9.0 9.0 14,795.5 3.0 Cost of sales 49,922.7 - - - - 49,922.7 - Current assets Canadian dollar 0.7517 0.7673 Merchandise and service revenues(1): Merchandise and service gross margin(1): Interest-bearing debt (including $686.1 million and $696.0 million for CAPL as at July 21, 2019 and as at April 28, 2019, respectively)(6)   9,410.4   9,575.3   (164.9)
Openings / constructions / additions 29 - 4 24 57 Cost of sales 12,569.4 - - - - 12,569.4 - Gross profit 9,194.9 - - 40.0 40.0 9,234.9 20.0 Prepaid expenses 83.7 (26.4) 57.3 Norwegian krone 0.1155 0.1234 United States 2,657.8 2,609.1 1.9 Consolidated 34.6% 34.6% - Equity attributable to shareholders of the Corporation 9,409.8 8,913.7 496.1
Closures / disposals / withdrawals (35) (64) (20) (23) (142) Gross profit 2,217.1 - - 9.0 9.0 2,226.1 3.0 Property and equipment 11,129.9 (306.5) 10,823.4 Swedish krone 0.1055 0.1138 Europe 353.1 368.7 (4.2) United States 34.0% 33.5% 0.5 Indebtedness Ratios(7):
Store conversion (3) 6 (3) - - Operating, selling, administrativeand general expenses 5,646.1   (390.0)   -   28.0   (362.0)   5,284.1 (361.0) Right-of-use assets - 2,835.0 2,835.0 Danish krone 0.1505 0.1575 Canada 575.6 544.4 5.7 Europe 41.5% 42.4% (0.9) Net interest-bearing debt/total capitalization(6)(8) 0.45 : 1 0.48 : 1
Number of sites, end of period 9,793 456 1,033 1,216 12,498 Operating, selling, administrative and general expenses   1,312.5   (88.0)   -   6.0   (82.0)   1,230.5 (82.0) Restructuring costs 10.5 - - - - 10.5 - Intangible assets 944.4 (104.5) 839.9 Zloty 0.2629 0.2726 CAPL 19.8 26.3 (24.7) Canada 32.9% 34.5% (1.6) Leverage ratio(9) 1.94 : 1 2.09 : 1
CAPL network 1,320 Restructuring costs 1.5 - - - - 1.5 - Gain on disposal of property andequipment and other assets (21.3   -   -   -   -   (21.3) - Other assets 306.6 27.7 334.3 Euro 1.2703 1.1734 Elimination of intercompany transactions with CAPL (0.5) (0.7) (28.6) Growth of same-store merchandise revenues(3): Adjusted leverage ratio(10) 2.03 : 1 2.18 : 1
Circle K branded sites under licensing agreements 2,248 Loss on disposal of property and equipment and other assets   0.2   -   -   -   -   0.2 -   Depreciation, amortization andimpairment 1,070.7 (18.0) 388.0 - 370.0 1,440.7 356.0 Total assets 22,607.7 2,425.3 25,033.0 Ruble 0.0156 0.0160 Total merchandise and service revenues 3,605.8 3,547.8 1.6 United States(4) 2.5% 4.2% (1.7) Returns(7):
Total network 16,066 Depreciation, amortization and impairment 301.5 (4.0) 90.0 - 86.0 387.5 81.0 Total operating expenses 6,706.0 (408.0) 388.0 28.0 8.0 6,714.0 (5.0) Road transportation fuel revenues: Europe 0.7% 7.3% (6.6) Return on equity(11) 22.0% 21.9%
Number of automated fuel stations included in theperiod‑end figures 981 - 12 - 993 Total operating expenses 1,615.7 (92.0) 90.0 6.0 4.0 1,619.7 (1.0) Operating income 2,488.9 408.0 (388.0) 12.0 32.0 2,520.9 25.0 Liabilities United States 6,801.5 7,159.5 (5.0) Canada(4) 0.3% 6.6% (6.3) Return on capital employed(12) 13.2% 12.6%
Operating income 601.4 92.0 (90.0) 3.0 5.0 606.4 4.0 Current liabilities Europe 1,919.8 1,952.5 (1.7) Road transportation fuel gross margin:
Share of earnings of joint ventures and associated companies     23.4     -     -     -     -     23.4 - Accounts payable and accrued liabilities 3,917.1 (24.6) 3,892.5 Canada 1,201.4 1,291.8 (7.0) United States (cents per gallon)(4) 26.86 22.70 18.3
Share of earnings of joint ventures and associated companies     7.1     -     -     -     -     7.1 - Current portion of long-term debt 1,310.7 (40.5) 1,270.2 CAPL 567.4 633.7 (10.5) Europe (cents per liter) 8.44 9.21 (8.4)
EBITDA 3,583.0 390.0 - 12.0 402.0 3,984.0 381.0 Current portion of lease liabilities - 382.9 382.9 Elimination of intercompany transactions with CAPL (121.4) (140.3) (13.5) Canada (CA cents per liter)(4) 7.40 8.91 (16.9)
EBITDA 910.0 88.0 - 3.0 91.0 1,001.0 85.0 Long-term debt 5,640.7 (287.8) 5,352.9 Total road transportation fuel revenues 10,368.7 10,897.2 (4.8) Total volume of road transportation fuel sold:
Financial expenses 338.7 (20.0) 90.0 - 70.0 408.7 62.0 Lease liabilities - 2,569.3 2,569.3 Other revenues(2): United States (millions of gallons) 2,590.6 2,574.6 0.6
Financial expenses 79.4 (5.0) 21.0 - 16.0 95.4 14.0 Financial revenues (13.3) - - - - (13.3) - Long-term provisions 590.1 (3.0) 587.1 United States 6.9 5.4 27.8 Europe (millions of liters) 2,633.6 2,676.4 (1.6)
Financial revenues (2.7) - - - - (2.7) - Foreign exchange gain (5.3) - - - - (5.3) - Deferred credits and other liabilities 349.0 (158.3) 190.7 Europe 155.1 319.0 (51.4) Canada (millions of liters) 1,472.6 1,469.2 0.2
Foreign exchange loss 1.0 - - - - 1.0 - Net financial expenses 320.1 (20.0) 90.0 - 70.0 390.1 62.0 Deferred income taxes 1,037.1 (3.2) 1,033.9 Canada 4.8 6.2 (22.6) Growth of (decrease in) same-store road transportation fuel volume(4):
Net financial expenses 77.7 (5.0) 21.0 - 16.0 93.7 14.0 Earnings before income taxes 2,192.2 428.0 (478.0) 12.0 (38.0) 2,154.2 (37.0) Total liabilities 13,426.6 2,434.8 15,861.4 CAPL 25.8 15.2 69.7 United States 0.6% 0.6% -
Earnings before income taxes 530.8 97.0 (111.0) 3.0 (11.0) 519.8 (10.0) Income taxes 370.9 108.0 (120.0) 3.0 (9.0) 361.9 (9.0) Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7) Europe (1.6%) (0.1%) (1.5)
Income taxes 88.2 25.0 (28.0) 1.0 (2.0) 86.2 (2.0) Net earnings including non-controlling interests 1,821.3 320.0 (358.0) 9.0 (29.0) 1,792.3 (28.0) Equity Total other revenues 188.5 341.5 (44.8) Canada 0.4% (3.3%) 3.7
Net earnings including non-controlling interests 442.6 72.0 (83.0) 2.0 (9.0) 433.6 (8.0) Net loss attributable to non-controlling interests 12.6 (3.0) 20.0 (16.0) 1.0 13.6 - Retained earnings 9,053.5 (9.5) 9,044.0 Total revenues 14,163.0 14,786.5 (4.2)
Net loss attributable to non-controlling interests 13.0 - 5.0 (4.0) 1.0 14.0 - Net earnings attributable toshareholders of the Corporation 1,833.9   317.0   (338.0)   (7.0)   (28.0)   1,805.9 (28.0) Total equity 9,181.1 (9.5) 9,171.6 Merchandise and service gross profit(1):
Net earnings attributable to shareholders of the Corporation 455.6   72.0   (78.0)   (2.0)   (8.0)   447.6 (8.0) United States 904.9 874.8 3.4
Europe 146.5 156.3 (6.3)
Canada 189.5 187.9 0.9
CAPL 4.6 6.4 (28.1)
Elimination of intercompany transactions with CAPL (0.5) (0.6) (16.7)
Total merchandise and service gross profit 1,245.0 1,224.8 1.6
Road transportation fuel gross profit:
United States 672.5 560.0 20.1
Europe 222.2 246.5 (9.9)
Canada 81.5 100.0 (18.5)
CAPL 23.1 26.6 (13.2)
Total road transportation fuel gross profit 999.3 933.1 7.1
Other revenues gross profit(2):
United States 6.9 5.3 30.2
Europe 31.3 36.8 (14.9)
Canada 4.8 6.2 (22.6)
CAPL 25.8 15.2 69.7
Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7)
Total other revenues gross profit 64.7 59.2 9.3
Total gross profit 2,309.0 2,217.1 4.1
Operating, selling, administrative and general expenses
Excluding CAPL 1,224.3 1,294.7 (5.4)
CAPL 20.2 22.6 (10.6)
Elimination of intercompany transactions with CAPL (4.4) (4.8) (8.3)
Total Operating, selling, administrative and general expenses 1,240.1 1,312.5 (5.5
Restructuring costs - 1.5 (100.0)
Loss on disposal of property and equipment and other assets 10.1 0.2 4,950.0
Depreciation, amortization and impairment
Excluding CAPL 284.2 213.2 33.3
CAPL 22.9 88.3 (74.1)
Total depreciation, amortization and impairment 307.1 301.5 1.9
Operating income
Excluding CAPL 743.0 671.3 10.7
CAPL 8.9 (69.8 (112.8)
Elimination of intercompany transactions with CAPL (0.2) (0.1) 100.0
Total operating income 751.7 601.4 25.0
Net financial expenses 87.0 77.7 0.12
Net earnings including non-controlling interests 536.0 442.6 21.1
Net loss attributable to non-controlling interests 2.8 13.0 (78.5)
Net earnings attributable to shareholders of the Corporation 538.8 455.6 18.3
Per Share Data:
Basic net earnings per share (dollars per share) 0.96 0.81 18.5
Diluted net earnings per share (dollars per share) 0.95 0.81 17.3
Adjusted diluted net earnings per share (dollars per share)(13) 0.97 0.87 11.5

12-week period ended July 21, 2019 52-week period ended April 28, 2019 (1)  Depreciation and interest expenses are based on our assessment of Fiscal 2020 impact. (in millions of US dollars) Balance,beginning of period Adoption of IFRS 16 Adjusted balance,beginning of period 12-week periods ended 12-week periods ended 12-week periods ended (in millions of US dollars, unless otherwise stated) July 21, 2019 April 28, 2019 Variation $
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total 12-week period ended July 22, 2018       (in millions of US dollars)     Pre – IFRS16 As reported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16 impacts – attributable to shareholders of the Corporation July 21, 2019 July 22, 2018 (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % Balance Sheet Data(5): (1) Includes revenues derived from franchise fees, royalties, suppliers' rebates on some purchases made by franchisees and licensees, as well as from wholesale of merchandise.
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575       (in millions of US dollars)     Pre – IFRS 16 Asreported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16impacts –attributable to shareholders of the Corporation Revenues 59,117.6 - - 40.0 40.0 59,157.6 20.0 Assets Average for period Statement of Operations Data: Other Operating Data – excluding CAPL: Total assets (including $1.3 billion and $1.1 billion for CAPL as at July 21, 2019 and as at April 28, 2019, respectively) 25,431.6 25,033.0 398.6 (2) Includes revenues from the rental of assets and from the sale of aviation fuel, energy for stationary engines and marine fuel (until November 30, 2018).
Acquisitions 8 - - - 8 Revenues 14,786.5 - - 9.0 9.0 14,795.5 3.0 Cost of sales 49,922.7 - - - - 49,922.7 - Current assets Canadian dollar 0.7517 0.7673 Merchandise and service revenues(1): Merchandise and service gross margin(1): Interest-bearing debt (including $686.1 million and $696.0 million for CAPL as at July 21, 2019 and as at April 28, 2019, respectively)(6)   9,410.4   9,575.3   (164.9) (3) Does not include services and other revenues (as described in footnotes 1 and 2 above). Growth in Canada and in Europe is calculated based on local currencies.
Openings / constructions / additions 29 - 4 24 57 Cost of sales 12,569.4 - - - - 12,569.4 - Gross profit 9,194.9 - - 40.0 40.0 9,234.9 20.0 Prepaid expenses 83.7 (26.4) 57.3 Norwegian krone 0.1155 0.1234 United States 2,657.8 2,609.1 1.9 Consolidated 34.6% 34.6% - Equity attributable to shareholders of the Corporation 9,409.8 8,913.7 496.1 (4) For company-operated stores only.
Closures / disposals / withdrawals (35) (64) (20) (23) (142) Gross profit 2,217.1 - - 9.0 9.0 2,226.1 3.0 Property and equipment 11,129.9 (306.5) 10,823.4 Swedish krone 0.1055 0.1138 Europe 353.1 368.7 (4.2) United States 34.0% 33.5% 0.5 Indebtedness Ratios(7): (5) The balance sheet data as at April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16.
Store conversion (3) 6 (3) - - Operating, selling, administrativeand general expenses 5,646.1   (390.0)   -   28.0   (362.0)   5,284.1 (361.0) Right-of-use assets - 2,835.0 2,835.0 Danish krone 0.1505 0.1575 Canada 575.6 544.4 5.7 Europe 41.5% 42.4% (0.9) Net interest-bearing debt/total capitalization(6)(8) 0.45 : 1 0.48 : 1 (6) This measure is presented including the following balance sheet accounts: Current portion of long-term debt, Long-term debt, Current portion of lease liabilities, and Lease liabilities.
Number of sites, end of period 9,793 456 1,033 1,216 12,498 Operating, selling, administrative and general expenses   1,312.5   (88.0)   -   6.0   (82.0)   1,230.5 (82.0) Restructuring costs 10.5 - - - - 10.5 - Intangible assets 944.4 (104.5) 839.9 Zloty 0.2629 0.2726 CAPL 19.8 26.3 (24.7) Canada 32.9% 34.5% (1.6) Leverage ratio(9) 1.94 : 1 2.09 : 1 (7) These measures are presented as if our investment in CAPL was reported using the equity method as we believe it allows a more relevant presentation of the underlying performance of the Corporation.
CAPL network 1,320 Restructuring costs 1.5 - - - - 1.5 - Gain on disposal of property andequipment and other assets (21.3   -   -   -   -   (21.3) - Other assets 306.6 27.7 334.3 Euro 1.2703 1.1734 Elimination of intercompany transactions with CAPL (0.5) (0.7) (28.6) Growth of same-store merchandise revenues(3): Adjusted leverage ratio(10) 2.03 : 1 2.18 : 1 (8) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by the addition of shareholders' equity and interest-bearing debt, net of cash and cash equivalents and temporary investments. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's long-term debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 0.39 : 1. We believe this measure is useful to investors and analysts.
Circle K branded sites under licensing agreements 2,248 Loss on disposal of property and equipment and other assets   0.2   -   -   -   -   0.2 -   Depreciation, amortization andimpairment 1,070.7 (18.0) 388.0 - 370.0 1,440.7 356.0 Total assets 22,607.7 2,425.3 25,033.0 Ruble 0.0156 0.0160 Total merchandise and service revenues 3,605.8 3,547.8 1.6 United States(4) 2.5% 4.2% (1.7) Returns(7): (9) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by EBITDA (Earnings before Interest, Tax, Depreciation, Amortization and Impairment) adjusted for specific items. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's long-term debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 1.61 : 1. We believe this measure is useful to investors and analysts.
Total network 16,066 Depreciation, amortization and impairment 301.5 (4.0) 90.0 - 86.0 387.5 81.0 Total operating expenses 6,706.0 (408.0) 388.0 28.0 8.0 6,714.0 (5.0) Road transportation fuel revenues: Europe 0.7% 7.3% (6.6) Return on equity(11) 22.0% 21.9% (10) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt plus the product of eight times rent expense, net of cash and cash equivalents and temporary investments divided by EBITDAR (Earnings before Interest, Tax, Depreciation, Amortization, Impairment and Rent expense) adjusted for specific items. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's interest bearing debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 2.29 : 1. We believe this measure is useful to investors and analysts.
Number of automated fuel stations included in theperiod‑end figures 981 - 12 - 993 Total operating expenses 1,615.7 (92.0) 90.0 6.0 4.0 1,619.7 (1.0) Operating income 2,488.9 408.0 (388.0) 12.0 32.0 2,520.9 25.0 Liabilities United States 6,801.5 7,159.5 (5.0) Canada(4) 0.3% 6.6% (6.3) Return on capital employed(12) 13.2% 12.6% (11) This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: net earnings divided by average equity for the corresponding period. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 22.3%. We believe this measure is useful to investors and analysts.
Operating income 601.4 92.0 (90.0) 3.0 5.0 606.4 4.0 Current liabilities Europe 1,919.8 1,952.5 (1.7) Road transportation fuel gross margin: (12) This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: earnings before income taxes and interests divided by average capital employed for the corresponding period. Capital employed represents total assets less short-term liabilities not bearing interests. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 14.1%. We believe this measure is useful to investors and analysts.
Share of earnings of joint ventures and associated companies     23.4     -     -     -     -     23.4 - Accounts payable and accrued liabilities 3,917.1 (24.6) 3,892.5 Canada 1,201.4 1,291.8 (7.0) United States (cents per gallon)(4) 26.86 22.70 18.3 (13) This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously reported adjusted net earnings per share was $0.88.
Share of earnings of joint ventures and associated companies     7.1     -     -     -     -     7.1 - Current portion of long-term debt 1,310.7 (40.5) 1,270.2 CAPL 567.4 633.7 (10.5) Europe (cents per liter) 8.44 9.21 (8.4)
EBITDA 3,583.0 390.0 - 12.0 402.0 3,984.0 381.0 Current portion of lease liabilities - 382.9 382.9 Elimination of intercompany transactions with CAPL (121.4) (140.3) (13.5) Canada (CA cents per liter)(4) 7.40 8.91 (16.9)
EBITDA 910.0 88.0 - 3.0 91.0 1,001.0 85.0 Long-term debt 5,640.7 (287.8) 5,352.9 Total road transportation fuel revenues 10,368.7 10,897.2 (4.8) Total volume of road transportation fuel sold:
Financial expenses 338.7 (20.0) 90.0 - 70.0 408.7 62.0 Lease liabilities - 2,569.3 2,569.3 Other revenues(2): United States (millions of gallons) 2,590.6 2,574.6 0.6
Financial expenses 79.4 (5.0) 21.0 - 16.0 95.4 14.0 Financial revenues (13.3) - - - - (13.3) - Long-term provisions 590.1 (3.0) 587.1 United States 6.9 5.4 27.8 Europe (millions of liters) 2,633.6 2,676.4 (1.6)
Financial revenues (2.7) - - - - (2.7) - Foreign exchange gain (5.3) - - - - (5.3) - Deferred credits and other liabilities 349.0 (158.3) 190.7 Europe 155.1 319.0 (51.4) Canada (millions of liters) 1,472.6 1,469.2 0.2
Foreign exchange loss 1.0 - - - - 1.0 - Net financial expenses 320.1 (20.0) 90.0 - 70.0 390.1 62.0 Deferred income taxes 1,037.1 (3.2) 1,033.9 Canada 4.8 6.2 (22.6) Growth of (decrease in) same-store road transportation fuel volume(4):
Net financial expenses 77.7 (5.0) 21.0 - 16.0 93.7 14.0 Earnings before income taxes 2,192.2 428.0 (478.0) 12.0 (38.0) 2,154.2 (37.0) Total liabilities 13,426.6 2,434.8 15,861.4 CAPL 25.8 15.2 69.7 United States 0.6% 0.6% -
Earnings before income taxes 530.8 97.0 (111.0) 3.0 (11.0) 519.8 (10.0) Income taxes 370.9 108.0 (120.0) 3.0 (9.0) 361.9 (9.0) Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7) Europe (1.6%) (0.1%) (1.5)
Income taxes 88.2 25.0 (28.0) 1.0 (2.0) 86.2 (2.0) Net earnings including non-controlling interests 1,821.3 320.0 (358.0) 9.0 (29.0) 1,792.3 (28.0) Equity Total other revenues 188.5 341.5 (44.8) Canada 0.4% (3.3%) 3.7
Net earnings including non-controlling interests 442.6 72.0 (83.0) 2.0 (9.0) 433.6 (8.0) Net loss attributable to non-controlling interests 12.6 (3.0) 20.0 (16.0) 1.0 13.6 - Retained earnings 9,053.5 (9.5) 9,044.0 Total revenues 14,163.0 14,786.5 (4.2)
Net loss attributable to non-controlling interests 13.0 - 5.0 (4.0) 1.0 14.0 - Net earnings attributable toshareholders of the Corporation 1,833.9   317.0   (338.0)   (7.0)   (28.0)   1,805.9 (28.0) Total equity 9,181.1 (9.5) 9,171.6 Merchandise and service gross profit(1):
Net earnings attributable to shareholders of the Corporation 455.6   72.0   (78.0)   (2.0)   (8.0)   447.6 (8.0) United States 904.9 874.8 3.4
Europe 146.5 156.3 (6.3)
Canada 189.5 187.9 0.9
CAPL 4.6 6.4 (28.1)
Elimination of intercompany transactions with CAPL (0.5) (0.6) (16.7)
Total merchandise and service gross profit 1,245.0 1,224.8 1.6
Road transportation fuel gross profit:
United States 672.5 560.0 20.1
Europe 222.2 246.5 (9.9)
Canada 81.5 100.0 (18.5)
CAPL 23.1 26.6 (13.2)
Total road transportation fuel gross profit 999.3 933.1 7.1
Other revenues gross profit(2):
United States 6.9 5.3 30.2
Europe 31.3 36.8 (14.9)
Canada 4.8 6.2 (22.6)
CAPL 25.8 15.2 69.7
Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7)
Total other revenues gross profit 64.7 59.2 9.3
Total gross profit 2,309.0 2,217.1 4.1
Operating, selling, administrative and general expenses
Excluding CAPL 1,224.3 1,294.7 (5.4)
CAPL 20.2 22.6 (10.6)
Elimination of intercompany transactions with CAPL (4.4) (4.8) (8.3)
Total Operating, selling, administrative and general expenses 1,240.1 1,312.5 (5.5
Restructuring costs - 1.5 (100.0)
Loss on disposal of property and equipment and other assets 10.1 0.2 4,950.0
Depreciation, amortization and impairment
Excluding CAPL 284.2 213.2 33.3
CAPL 22.9 88.3 (74.1)
Total depreciation, amortization and impairment 307.1 301.5 1.9
Operating income
Excluding CAPL 743.0 671.3 10.7
CAPL 8.9 (69.8 (112.8)
Elimination of intercompany transactions with CAPL (0.2) (0.1) 100.0
Total operating income 751.7 601.4 25.0
Net financial expenses 87.0 77.7 0.12
Net earnings including non-controlling interests 536.0 442.6 21.1
Net loss attributable to non-controlling interests 2.8 13.0 (78.5)
Net earnings attributable to shareholders of the Corporation 538.8 455.6 18.3
Per Share Data:
Basic net earnings per share (dollars per share) 0.96 0.81 18.5
Diluted net earnings per share (dollars per share) 0.95 0.81 17.3
Adjusted diluted net earnings per share (dollars per share)(13) 0.97 0.87 11.5

 

Revenues

Our revenues were $14.2 billion for the first quarter of fiscal 2020, down by $623.5 million, a decrease of 4.2% compared with the corresponding quarter of fiscal 2019, mainly attributable to a net lower average road transportation fuel selling price, the net negative impact from the translation of our Canadian and European operations into US dollars, and the disposal of our marine fuel business, partly offset by organic growth.

Merchandise and service revenues

Total merchandise and service revenues for the first quarter of fiscal 2020 were $3.6 billion, an increase of $58.0 million compared with the corresponding quarter of fiscal 2019. Excluding CAPL's revenues, as well as the net negative impact from the translation of our Canadian and European operations into US dollars, merchandise and service revenues increased by approximately $97.0 million or 2.7%. This increase is primarily attributable to continued organic growth, despite unfavorable weather and cycling against an exceptional first quarter last year. Same-store merchandise revenues increased by 2.5% in the United States, by 0.7% in Europe and by 0.3% in Canada, driven by the improvements made to our offering, as well as by our various initiatives to drive traffic in our stores.

Road transportation fuel revenues

Total road transportation fuel revenues for the first quarter of fiscal 2020 were $10.4 billion, a decrease of $528.5 million compared with the corresponding quarter of fiscal 2019. Excluding CAPL's revenues, as well as the net negative impact from the translation of revenues of our Canadian and European operations into US dollars, road transportation fuel revenues decreased by approximately $338.0 million or 3.3%. This decrease is attributable to a net lower average road transportation fuel selling price, which had a net negative impact of approximately $354.0 million, partly offset by organic growth. Same‑store road transportation fuel volume in the United States increased by 0.6%. In Europe, same‑store road transportation fuel volume decreased by 1.6% due to the competitive landscape and unfavorable weather. In Canada, same‑store road transportation fuel volume increased by 0.4%, another sequential improvement.

The following table shows the average road transportation fuel selling price of our company-operated stores in our various markets for the last eight quarters, starting with the second quarter of the fiscal year ended April 29, 2018:

 

12-week period ended July 21, 2019 52-week period ended April 28, 2019 (1)  Depreciation and interest expenses are based on our assessment of Fiscal 2020 impact. (in millions of US dollars) Balance,beginning of period Adoption of IFRS 16 Adjusted balance,beginning of period 12-week periods ended 12-week periods ended 12-week periods ended (in millions of US dollars, unless otherwise stated) July 21, 2019 April 28, 2019 Variation $ Quarter 2nd 3rd 4th 1st Weighted average
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total 12-week period ended July 22, 2018       (in millions of US dollars)     Pre – IFRS16 As reported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16 impacts – attributable to shareholders of the Corporation July 21, 2019 July 22, 2018 (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % Balance Sheet Data(5): (1) Includes revenues derived from franchise fees, royalties, suppliers' rebates on some purchases made by franchisees and licensees, as well as from wholesale of merchandise. 52‑week period ended July 21, 2019
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575       (in millions of US dollars)     Pre – IFRS 16 Asreported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16impacts –attributable to shareholders of the Corporation Revenues 59,117.6 - - 40.0 40.0 59,157.6 20.0 Assets Average for period Statement of Operations Data: Other Operating Data – excluding CAPL: Total assets (including $1.3 billion and $1.1 billion for CAPL as at July 21, 2019 and as at April 28, 2019, respectively) 25,431.6 25,033.0 398.6 (2) Includes revenues from the rental of assets and from the sale of aviation fuel, energy for stationary engines and marine fuel (until November 30, 2018). United States (US dollars per gallon) – excluding CAPL 2.72 2.42 2.51 2.66 2.57
Acquisitions 8 - - - 8 Revenues 14,786.5 - - 9.0 9.0 14,795.5 3.0 Cost of sales 49,922.7 - - - - 49,922.7 - Current assets Canadian dollar 0.7517 0.7673 Merchandise and service revenues(1): Merchandise and service gross margin(1): Interest-bearing debt (including $686.1 million and $696.0 million for CAPL as at July 21, 2019 and as at April 28, 2019, respectively)(6)   9,410.4   9,575.3   (164.9) (3) Does not include services and other revenues (as described in footnotes 1 and 2 above). Growth in Canada and in Europe is calculated based on local currencies. Europe (US cents per liter) 80.56 75.28 74.59 77.35 76.86
Openings / constructions / additions 29 - 4 24 57 Cost of sales 12,569.4 - - - - 12,569.4 - Gross profit 9,194.9 - - 40.0 40.0 9,234.9 20.0 Prepaid expenses 83.7 (26.4) 57.3 Norwegian krone 0.1155 0.1234 United States 2,657.8 2,609.1 1.9 Consolidated 34.6% 34.6% - Equity attributable to shareholders of the Corporation 9,409.8 8,913.7 496.1 (4) For company-operated stores only. Canada (CA cents per liter) 115.22 97.59 103.45 111.16 106.23
Closures / disposals / withdrawals (35) (64) (20) (23) (142) Gross profit 2,217.1 - - 9.0 9.0 2,226.1 3.0 Property and equipment 11,129.9 (306.5) 10,823.4 Swedish krone 0.1055 0.1138 Europe 353.1 368.7 (4.2) United States 34.0% 33.5% 0.5 Indebtedness Ratios(7): (5) The balance sheet data as at April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16. 52‑week period ended July 22, 2018
Store conversion (3) 6 (3) - - Operating, selling, administrativeand general expenses 5,646.1   (390.0)   -   28.0   (362.0)   5,284.1 (361.0) Right-of-use assets - 2,835.0 2,835.0 Danish krone 0.1505 0.1575 Canada 575.6 544.4 5.7 Europe 41.5% 42.4% (0.9) Net interest-bearing debt/total capitalization(6)(8) 0.45 : 1 0.48 : 1 (6) This measure is presented including the following balance sheet accounts: Current portion of long-term debt, Long-term debt, Current portion of lease liabilities, and Lease liabilities. United States (US dollars per gallon) – excluding CAPL 2.47 2.30 2.51 2.76 2.50
Number of sites, end of period 9,793 456 1,033 1,216 12,498 Operating, selling, administrative and general expenses   1,312.5   (88.0)   -   6.0   (82.0)   1,230.5 (82.0) Restructuring costs 10.5 - - - - 10.5 - Intangible assets 944.4 (104.5) 839.9 Zloty 0.2629 0.2726 CAPL 19.8 26.3 (24.7) Canada 32.9% 34.5% (1.6) Leverage ratio(9) 1.94 : 1 2.09 : 1 (7) These measures are presented as if our investment in CAPL was reported using the equity method as we believe it allows a more relevant presentation of the underlying performance of the Corporation. Europe (US cents per liter) 68.23 71.19 78.32 75.07 73.01
CAPL network 1,320 Restructuring costs 1.5 - - - - 1.5 - Gain on disposal of property andequipment and other assets (21.3   -   -   -   -   (21.3) - Other assets 306.6 27.7 334.3 Euro 1.2703 1.1734 Elimination of intercompany transactions with CAPL (0.5) (0.7) (28.6) Growth of same-store merchandise revenues(3): Adjusted leverage ratio(10) 2.03 : 1 2.18 : 1 (8) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by the addition of shareholders' equity and interest-bearing debt, net of cash and cash equivalents and temporary investments. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's long-term debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 0.39 : 1. We believe this measure is useful to investors and analysts. Canada (CA cents per liter) 101.46 108.11 110.39 117.95 109.37
Circle K branded sites under licensing agreements 2,248 Loss on disposal of property and equipment and other assets   0.2   -   -   -   -   0.2 -   Depreciation, amortization andimpairment 1,070.7 (18.0) 388.0 - 370.0 1,440.7 356.0 Total assets 22,607.7 2,425.3 25,033.0 Ruble 0.0156 0.0160 Total merchandise and service revenues 3,605.8 3,547.8 1.6 United States(4) 2.5% 4.2% (1.7) Returns(7): (9) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by EBITDA (Earnings before Interest, Tax, Depreciation, Amortization and Impairment) adjusted for specific items. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's long-term debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 1.61 : 1. We believe this measure is useful to investors and analysts.
Total network 16,066 Depreciation, amortization and impairment 301.5 (4.0) 90.0 - 86.0 387.5 81.0 Total operating expenses 6,706.0 (408.0) 388.0 28.0 8.0 6,714.0 (5.0) Road transportation fuel revenues: Europe 0.7% 7.3% (6.6) Return on equity(11) 22.0% 21.9% (10) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt plus the product of eight times rent expense, net of cash and cash equivalents and temporary investments divided by EBITDAR (Earnings before Interest, Tax, Depreciation, Amortization, Impairment and Rent expense) adjusted for specific items. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's interest bearing debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 2.29 : 1. We believe this measure is useful to investors and analysts.
Number of automated fuel stations included in theperiod‑end figures 981 - 12 - 993 Total operating expenses 1,615.7 (92.0) 90.0 6.0 4.0 1,619.7 (1.0) Operating income 2,488.9 408.0 (388.0) 12.0 32.0 2,520.9 25.0 Liabilities United States 6,801.5 7,159.5 (5.0) Canada(4) 0.3% 6.6% (6.3) Return on capital employed(12) 13.2% 12.6% (11) This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: net earnings divided by average equity for the corresponding period. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 22.3%. We believe this measure is useful to investors and analysts.
Operating income 601.4 92.0 (90.0) 3.0 5.0 606.4 4.0 Current liabilities Europe 1,919.8 1,952.5 (1.7) Road transportation fuel gross margin: (12) This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: earnings before income taxes and interests divided by average capital employed for the corresponding period. Capital employed represents total assets less short-term liabilities not bearing interests. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 14.1%. We believe this measure is useful to investors and analysts.
Share of earnings of joint ventures and associated companies     23.4     -     -     -     -     23.4 - Accounts payable and accrued liabilities 3,917.1 (24.6) 3,892.5 Canada 1,201.4 1,291.8 (7.0) United States (cents per gallon)(4) 26.86 22.70 18.3 (13) This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously reported adjusted net earnings per share was $0.88.
Share of earnings of joint ventures and associated companies     7.1     -     -     -     -     7.1 - Current portion of long-term debt 1,310.7 (40.5) 1,270.2 CAPL 567.4 633.7 (10.5) Europe (cents per liter) 8.44 9.21 (8.4)
EBITDA 3,583.0 390.0 - 12.0 402.0 3,984.0 381.0 Current portion of lease liabilities - 382.9 382.9 Elimination of intercompany transactions with CAPL (121.4) (140.3) (13.5) Canada (CA cents per liter)(4) 7.40 8.91 (16.9)
EBITDA 910.0 88.0 - 3.0 91.0 1,001.0 85.0 Long-term debt 5,640.7 (287.8) 5,352.9 Total road transportation fuel revenues 10,368.7 10,897.2 (4.8) Total volume of road transportation fuel sold:
Financial expenses 338.7 (20.0) 90.0 - 70.0 408.7 62.0 Lease liabilities - 2,569.3 2,569.3 Other revenues(2): United States (millions of gallons) 2,590.6 2,574.6 0.6
Financial expenses 79.4 (5.0) 21.0 - 16.0 95.4 14.0 Financial revenues (13.3) - - - - (13.3) - Long-term provisions 590.1 (3.0) 587.1 United States 6.9 5.4 27.8 Europe (millions of liters) 2,633.6 2,676.4 (1.6)
Financial revenues (2.7) - - - - (2.7) - Foreign exchange gain (5.3) - - - - (5.3) - Deferred credits and other liabilities 349.0 (158.3) 190.7 Europe 155.1 319.0 (51.4) Canada (millions of liters) 1,472.6 1,469.2 0.2
Foreign exchange loss 1.0 - - - - 1.0 - Net financial expenses 320.1 (20.0) 90.0 - 70.0 390.1 62.0 Deferred income taxes 1,037.1 (3.2) 1,033.9 Canada 4.8 6.2 (22.6) Growth of (decrease in) same-store road transportation fuel volume(4):
Net financial expenses 77.7 (5.0) 21.0 - 16.0 93.7 14.0 Earnings before income taxes 2,192.2 428.0 (478.0) 12.0 (38.0) 2,154.2 (37.0) Total liabilities 13,426.6 2,434.8 15,861.4 CAPL 25.8 15.2 69.7 United States 0.6% 0.6% -
Earnings before income taxes 530.8 97.0 (111.0) 3.0 (11.0) 519.8 (10.0) Income taxes 370.9 108.0 (120.0) 3.0 (9.0) 361.9 (9.0) Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7) Europe (1.6%) (0.1%) (1.5)
Income taxes 88.2 25.0 (28.0) 1.0 (2.0) 86.2 (2.0) Net earnings including non-controlling interests 1,821.3 320.0 (358.0) 9.0 (29.0) 1,792.3 (28.0) Equity Total other revenues 188.5 341.5 (44.8) Canada 0.4% (3.3%) 3.7
Net earnings including non-controlling interests 442.6 72.0 (83.0) 2.0 (9.0) 433.6 (8.0) Net loss attributable to non-controlling interests 12.6 (3.0) 20.0 (16.0) 1.0 13.6 - Retained earnings 9,053.5 (9.5) 9,044.0 Total revenues 14,163.0 14,786.5 (4.2)
Net loss attributable to non-controlling interests 13.0 - 5.0 (4.0) 1.0 14.0 - Net earnings attributable toshareholders of the Corporation 1,833.9   317.0   (338.0)   (7.0)   (28.0)   1,805.9 (28.0) Total equity 9,181.1 (9.5) 9,171.6 Merchandise and service gross profit(1):
Net earnings attributable to shareholders of the Corporation 455.6   72.0   (78.0)   (2.0)   (8.0)   447.6 (8.0) United States 904.9 874.8 3.4
Europe 146.5 156.3 (6.3)
Canada 189.5 187.9 0.9
CAPL 4.6 6.4 (28.1)
Elimination of intercompany transactions with CAPL (0.5) (0.6) (16.7)
Total merchandise and service gross profit 1,245.0 1,224.8 1.6
Road transportation fuel gross profit:
United States 672.5 560.0 20.1
Europe 222.2 246.5 (9.9)
Canada 81.5 100.0 (18.5)
CAPL 23.1 26.6 (13.2)
Total road transportation fuel gross profit 999.3 933.1 7.1
Other revenues gross profit(2):
United States 6.9 5.3 30.2
Europe 31.3 36.8 (14.9)
Canada 4.8 6.2 (22.6)
CAPL 25.8 15.2 69.7
Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7)
Total other revenues gross profit 64.7 59.2 9.3
Total gross profit 2,309.0 2,217.1 4.1
Operating, selling, administrative and general expenses
Excluding CAPL 1,224.3 1,294.7 (5.4)
CAPL 20.2 22.6 (10.6)
Elimination of intercompany transactions with CAPL (4.4) (4.8) (8.3)
Total Operating, selling, administrative and general expenses 1,240.1 1,312.5 (5.5
Restructuring costs - 1.5 (100.0)
Loss on disposal of property and equipment and other assets 10.1 0.2 4,950.0
Depreciation, amortization and impairment
Excluding CAPL 284.2 213.2 33.3
CAPL 22.9 88.3 (74.1)
Total depreciation, amortization and impairment 307.1 301.5 1.9
Operating income
Excluding CAPL 743.0 671.3 10.7
CAPL 8.9 (69.8 (112.8)
Elimination of intercompany transactions with CAPL (0.2) (0.1) 100.0
Total operating income 751.7 601.4 25.0
Net financial expenses 87.0 77.7 0.12
Net earnings including non-controlling interests 536.0 442.6 21.1
Net loss attributable to non-controlling interests 2.8 13.0 (78.5)
Net earnings attributable to shareholders of the Corporation 538.8 455.6 18.3
Per Share Data:
Basic net earnings per share (dollars per share) 0.96 0.81 18.5
Diluted net earnings per share (dollars per share) 0.95 0.81 17.3
Adjusted diluted net earnings per share (dollars per share)(13) 0.97 0.87 11.5

 

Other revenues

Total other revenues for the first quarter of fiscal 2020 were $188.5 million, a decrease of $153.0 million compared with the corresponding period of fiscal 2019. Excluding CAPL's revenues, as well as the net negative impact from the translation of revenues of our Canadian and European operations into US dollars, other revenues decreased by approximately $146.0 million in the first quarter of fiscal 2020. The decrease is primarily driven by the disposal of our marine fuel business, which had an impact of approximately $80.0 million, as well as lower aviation fuel revenues which had a minimal impact on gross profit.

Gross profit

Our gross profit was $2.3 billion for the first quarter of fiscal 2020, up by $91.9 million, or 4.1%, compared with the corresponding quarter of fiscal 2019, mainly attributable to higher fuel margins in the United States and organic growth, partly offset by the net negative impact from the translation of our Canadian and European operations into US dollars, which totalled approximately $33.0 million.

Merchandise and service gross profit

In the first quarter of fiscal 2020, our merchandise and service gross profit was $1.2 billion, an increase of $20.2 million compared with the corresponding quarter of fiscal 2019. Excluding CAPL's gross profit, as well as the net negative impact from the translation of our Canadian and European operations into US dollars, merchandise and service gross profit increased by approximately $35.0 million or 2.9%, mainly attributable to our organic growth. Our gross margin increased by 0.5% in the United States to 34.0% and decreased by 0.9% in Europe to 41.5%, both driven by changes in product mix. In Canada, our gross margin decreased by 1.6% to 32.9%, mainly as a result of the conversion of our Esso stores from the agent model to the corporate model, as well as from a change in product mix.

Road transportation fuel gross profit

In the first quarter of fiscal 2020, our road transportation fuel gross profit was $999.3 million, an increase of $66.2 million compared with the corresponding quarter of fiscal 2019. Excluding CAPL's gross profit, as well as the net negative impact from the translation of our Canadian and European operations into US dollars, our first quarter of fiscal 2020 road transportation fuel gross profit increased by approximately $87.0 million or 9.6%. Our road transportation fuel gross margin was 26.86¢ per gallon in the United States, an increase of 4.16¢ per gallon supported by the volatility in crude oil prices as well as improved sourcing conditions. In Europe, the road transportation fuel gross margin was US 8.44¢ per liter, a decrease of US 0.77¢ per liter mainly due to the net negative impact of foreign exchange, and a higher bio-fuel blending ratio taking advantage of favorable conditions. The remaining variance is driven by competitive pressure in some of our markets.  In Canada, the road transportation fuel gross margin was CA 7.40¢ per liter, a decrease of CA 1.51¢ per liter due to competitive pressure in some of our markets.

The road transportation fuel gross margin of our company-operated stores in the United States and the impact of expenses related to electronic payment modes for the last eight quarters, starting with the second quarter of the fiscal year ended April 29, 2018, were as follows:

 

12-week period ended July 21, 2019 52-week period ended April 28, 2019 (1)  Depreciation and interest expenses are based on our assessment of Fiscal 2020 impact. (in millions of US dollars) Balance,beginning of period Adoption of IFRS 16 Adjusted balance,beginning of period 12-week periods ended 12-week periods ended 12-week periods ended (in millions of US dollars, unless otherwise stated) July 21, 2019 April 28, 2019 Variation $ Quarter 2nd 3rd 4th 1st Weighted average (US cents per gallon)
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total 12-week period ended July 22, 2018       (in millions of US dollars)     Pre – IFRS16 As reported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16 impacts – attributable to shareholders of the Corporation July 21, 2019 July 22, 2018 (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % Balance Sheet Data(5): (1) Includes revenues derived from franchise fees, royalties, suppliers' rebates on some purchases made by franchisees and licensees, as well as from wholesale of merchandise. 52‑week period ended July 21, 2019 Quarter 2nd 3rd 4th 1st Weighted average
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575       (in millions of US dollars)     Pre – IFRS 16 Asreported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16impacts –attributable to shareholders of the Corporation Revenues 59,117.6 - - 40.0 40.0 59,157.6 20.0 Assets Average for period Statement of Operations Data: Other Operating Data – excluding CAPL: Total assets (including $1.3 billion and $1.1 billion for CAPL as at July 21, 2019 and as at April 28, 2019, respectively) 25,431.6 25,033.0 398.6 (2) Includes revenues from the rental of assets and from the sale of aviation fuel, energy for stationary engines and marine fuel (until November 30, 2018). United States (US dollars per gallon) – excluding CAPL 2.72 2.42 2.51 2.66 2.57 52‑week period ended July 21, 2019
Acquisitions 8 - - - 8 Revenues 14,786.5 - - 9.0 9.0 14,795.5 3.0 Cost of sales 49,922.7 - - - - 49,922.7 - Current assets Canadian dollar 0.7517 0.7673 Merchandise and service revenues(1): Merchandise and service gross margin(1): Interest-bearing debt (including $686.1 million and $696.0 million for CAPL as at July 21, 2019 and as at April 28, 2019, respectively)(6)   9,410.4   9,575.3   (164.9) (3) Does not include services and other revenues (as described in footnotes 1 and 2 above). Growth in Canada and in Europe is calculated based on local currencies. Europe (US cents per liter) 80.56 75.28 74.59 77.35 76.86 Before deduction of expenses related to electronic payment modes 21.88 29.42 18.51 26.86 24.50
Openings / constructions / additions 29 - 4 24 57 Cost of sales 12,569.4 - - - - 12,569.4 - Gross profit 9,194.9 - - 40.0 40.0 9,234.9 20.0 Prepaid expenses 83.7 (26.4) 57.3 Norwegian krone 0.1155 0.1234 United States 2,657.8 2,609.1 1.9 Consolidated 34.6% 34.6% - Equity attributable to shareholders of the Corporation 9,409.8 8,913.7 496.1 (4) For company-operated stores only. Canada (CA cents per liter) 115.22 97.59 103.45 111.16 106.23 Expenses related to electronic payment modes(1) 4.55 4.31 4.40 4.70 4.50
Closures / disposals / withdrawals (35) (64) (20) (23) (142) Gross profit 2,217.1 - - 9.0 9.0 2,226.1 3.0 Property and equipment 11,129.9 (306.5) 10,823.4 Swedish krone 0.1055 0.1138 Europe 353.1 368.7 (4.2) United States 34.0% 33.5% 0.5 Indebtedness Ratios(7): (5) The balance sheet data as at April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16. 52‑week period ended July 22, 2018 After deduction of expenses related to electronic payment modes 17.33 25.11 14.11 22.16 20.00
Store conversion (3) 6 (3) - - Operating, selling, administrativeand general expenses 5,646.1   (390.0)   -   28.0   (362.0)   5,284.1 (361.0) Right-of-use assets - 2,835.0 2,835.0 Danish krone 0.1505 0.1575 Canada 575.6 544.4 5.7 Europe 41.5% 42.4% (0.9) Net interest-bearing debt/total capitalization(6)(8) 0.45 : 1 0.48 : 1 (6) This measure is presented including the following balance sheet accounts: Current portion of long-term debt, Long-term debt, Current portion of lease liabilities, and Lease liabilities. United States (US dollars per gallon) – excluding CAPL 2.47 2.30 2.51 2.76 2.50 52-week period ended July 22, 2018
Number of sites, end of period 9,793 456 1,033 1,216 12,498 Operating, selling, administrative and general expenses   1,312.5   (88.0)   -   6.0   (82.0)   1,230.5 (82.0) Restructuring costs 10.5 - - - - 10.5 - Intangible assets 944.4 (104.5) 839.9 Zloty 0.2629 0.2726 CAPL 19.8 26.3 (24.7) Canada 32.9% 34.5% (1.6) Leverage ratio(9) 1.94 : 1 2.09 : 1 (7) These measures are presented as if our investment in CAPL was reported using the equity method as we believe it allows a more relevant presentation of the underlying performance of the Corporation. Europe (US cents per liter) 68.23 71.19 78.32 75.07 73.01 Before deduction of expenses related to electronic payment modes 24.70 15.66 17.29 22.70 19.42
CAPL network 1,320 Restructuring costs 1.5 - - - - 1.5 - Gain on disposal of property andequipment and other assets (21.3   -   -   -   -   (21.3) - Other assets 306.6 27.7 334.3 Euro 1.2703 1.1734 Elimination of intercompany transactions with CAPL (0.5) (0.7) (28.6) Growth of same-store merchandise revenues(3): Adjusted leverage ratio(10) 2.03 : 1 2.18 : 1 (8) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by the addition of shareholders' equity and interest-bearing debt, net of cash and cash equivalents and temporary investments. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's long-term debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 0.39 : 1. We believe this measure is useful to investors and analysts. Canada (CA cents per liter) 101.46 108.11 110.39 117.95 109.37 Expenses related to electronic payment modes(1) 4.31 4.06 3.86 4.67 4.20
Circle K branded sites under licensing agreements 2,248 Loss on disposal of property and equipment and other assets   0.2   -   -   -   -   0.2 -   Depreciation, amortization andimpairment 1,070.7 (18.0) 388.0 - 370.0 1,440.7 356.0 Total assets 22,607.7 2,425.3 25,033.0 Ruble 0.0156 0.0160 Total merchandise and service revenues 3,605.8 3,547.8 1.6 United States(4) 2.5% 4.2% (1.7) Returns(7): (9) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by EBITDA (Earnings before Interest, Tax, Depreciation, Amortization and Impairment) adjusted for specific items. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's long-term debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 1.61 : 1. We believe this measure is useful to investors and analysts. After deduction of expenses related to electronic payment modes 20.39 11.60 13.43 18.03 15.22
Total network 16,066 Depreciation, amortization and impairment 301.5 (4.0) 90.0 - 86.0 387.5 81.0 Total operating expenses 6,706.0 (408.0) 388.0 28.0 8.0 6,714.0 (5.0) Road transportation fuel revenues: Europe 0.7% 7.3% (6.6) Return on equity(11) 22.0% 21.9% (10) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt plus the product of eight times rent expense, net of cash and cash equivalents and temporary investments divided by EBITDAR (Earnings before Interest, Tax, Depreciation, Amortization, Impairment and Rent expense) adjusted for specific items. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's interest bearing debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 2.29 : 1. We believe this measure is useful to investors and analysts.
Number of automated fuel stations included in theperiod‑end figures 981 - 12 - 993 Total operating expenses 1,615.7 (92.0) 90.0 6.0 4.0 1,619.7 (1.0) Operating income 2,488.9 408.0 (388.0) 12.0 32.0 2,520.9 25.0 Liabilities United States 6,801.5 7,159.5 (5.0) Canada(4) 0.3% 6.6% (6.3) Return on capital employed(12) 13.2% 12.6% (11) This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: net earnings divided by average equity for the corresponding period. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 22.3%. We believe this measure is useful to investors and analysts.
Operating income 601.4 92.0 (90.0) 3.0 5.0 606.4 4.0 Current liabilities Europe 1,919.8 1,952.5 (1.7) Road transportation fuel gross margin: (12) This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: earnings before income taxes and interests divided by average capital employed for the corresponding period. Capital employed represents total assets less short-term liabilities not bearing interests. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 14.1%. We believe this measure is useful to investors and analysts.
Share of earnings of joint ventures and associated companies     23.4     -     -     -     -     23.4 - Accounts payable and accrued liabilities 3,917.1 (24.6) 3,892.5 Canada 1,201.4 1,291.8 (7.0) United States (cents per gallon)(4) 26.86 22.70 18.3 (13) This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously reported adjusted net earnings per share was $0.88.
Share of earnings of joint ventures and associated companies     7.1     -     -     -     -     7.1 - Current portion of long-term debt 1,310.7 (40.5) 1,270.2 CAPL 567.4 633.7 (10.5) Europe (cents per liter) 8.44 9.21 (8.4)
EBITDA 3,583.0 390.0 - 12.0 402.0 3,984.0 381.0 Current portion of lease liabilities - 382.9 382.9 Elimination of intercompany transactions with CAPL (121.4) (140.3) (13.5) Canada (CA cents per liter)(4) 7.40 8.91 (16.9)
EBITDA 910.0 88.0 - 3.0 91.0 1,001.0 85.0 Long-term debt 5,640.7 (287.8) 5,352.9 Total road transportation fuel revenues 10,368.7 10,897.2 (4.8) Total volume of road transportation fuel sold:
Financial expenses 338.7 (20.0) 90.0 - 70.0 408.7 62.0 Lease liabilities - 2,569.3 2,569.3 Other revenues(2): United States (millions of gallons) 2,590.6 2,574.6 0.6
Financial expenses 79.4 (5.0) 21.0 - 16.0 95.4 14.0 Financial revenues (13.3) - - - - (13.3) - Long-term provisions 590.1 (3.0) 587.1 United States 6.9 5.4 27.8 Europe (millions of liters) 2,633.6 2,676.4 (1.6)
Financial revenues (2.7) - - - - (2.7) - Foreign exchange gain (5.3) - - - - (5.3) - Deferred credits and other liabilities 349.0 (158.3) 190.7 Europe 155.1 319.0 (51.4) Canada (millions of liters) 1,472.6 1,469.2 0.2
Foreign exchange loss 1.0 - - - - 1.0 - Net financial expenses 320.1 (20.0) 90.0 - 70.0 390.1 62.0 Deferred income taxes 1,037.1 (3.2) 1,033.9 Canada 4.8 6.2 (22.6) Growth of (decrease in) same-store road transportation fuel volume(4):
Net financial expenses 77.7 (5.0) 21.0 - 16.0 93.7 14.0 Earnings before income taxes 2,192.2 428.0 (478.0) 12.0 (38.0) 2,154.2 (37.0) Total liabilities 13,426.6 2,434.8 15,861.4 CAPL 25.8 15.2 69.7 United States 0.6% 0.6% -
Earnings before income taxes 530.8 97.0 (111.0) 3.0 (11.0) 519.8 (10.0) Income taxes 370.9 108.0 (120.0) 3.0 (9.0) 361.9 (9.0) Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7) Europe (1.6%) (0.1%) (1.5)
Income taxes 88.2 25.0 (28.0) 1.0 (2.0) 86.2 (2.0) Net earnings including non-controlling interests 1,821.3 320.0 (358.0) 9.0 (29.0) 1,792.3 (28.0) Equity Total other revenues 188.5 341.5 (44.8) Canada 0.4% (3.3%) 3.7
Net earnings including non-controlling interests 442.6 72.0 (83.0) 2.0 (9.0) 433.6 (8.0) Net loss attributable to non-controlling interests 12.6 (3.0) 20.0 (16.0) 1.0 13.6 - Retained earnings 9,053.5 (9.5) 9,044.0 Total revenues 14,163.0 14,786.5 (4.2)
Net loss attributable to non-controlling interests 13.0 - 5.0 (4.0) 1.0 14.0 - Net earnings attributable toshareholders of the Corporation 1,833.9   317.0   (338.0)   (7.0)   (28.0)   1,805.9 (28.0) Total equity 9,181.1 (9.5) 9,171.6 Merchandise and service gross profit(1):
Net earnings attributable to shareholders of the Corporation 455.6   72.0   (78.0)   (2.0)   (8.0)   447.6 (8.0) United States 904.9 874.8 3.4
Europe 146.5 156.3 (6.3)
Canada 189.5 187.9 0.9
CAPL 4.6 6.4 (28.1)
Elimination of intercompany transactions with CAPL (0.5) (0.6) (16.7)
Total merchandise and service gross profit 1,245.0 1,224.8 1.6
Road transportation fuel gross profit:
United States 672.5 560.0 20.1
Europe 222.2 246.5 (9.9)
Canada 81.5 100.0 (18.5)
CAPL 23.1 26.6 (13.2)
Total road transportation fuel gross profit 999.3 933.1 7.1
Other revenues gross profit(2):
United States 6.9 5.3 30.2
Europe 31.3 36.8 (14.9)
Canada 4.8 6.2 (22.6)
CAPL 25.8 15.2 69.7
Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7)
Total other revenues gross profit 64.7 59.2 9.3
Total gross profit 2,309.0 2,217.1 4.1
Operating, selling, administrative and general expenses
Excluding CAPL 1,224.3 1,294.7 (5.4)
CAPL 20.2 22.6 (10.6)
Elimination of intercompany transactions with CAPL (4.4) (4.8) (8.3)
Total Operating, selling, administrative and general expenses 1,240.1 1,312.5 (5.5
Restructuring costs - 1.5 (100.0)
Loss on disposal of property and equipment and other assets 10.1 0.2 4,950.0
Depreciation, amortization and impairment
Excluding CAPL 284.2 213.2 33.3
CAPL 22.9 88.3 (74.1)
Total depreciation, amortization and impairment 307.1 301.5 1.9
Operating income
Excluding CAPL 743.0 671.3 10.7
CAPL 8.9 (69.8 (112.8)
Elimination of intercompany transactions with CAPL (0.2) (0.1) 100.0
Total operating income 751.7 601.4 25.0
Net financial expenses 87.0 77.7 0.12
Net earnings including non-controlling interests 536.0 442.6 21.1
Net loss attributable to non-controlling interests 2.8 13.0 (78.5)
Net earnings attributable to shareholders of the Corporation 538.8 455.6 18.3
Per Share Data:
Basic net earnings per share (dollars per share) 0.96 0.81 18.5
Diluted net earnings per share (dollars per share) 0.95 0.81 17.3
Adjusted diluted net earnings per share (dollars per share)(13) 0.97 0.87 11.5

12-week period ended July 21, 2019 52-week period ended April 28, 2019 (1)  Depreciation and interest expenses are based on our assessment of Fiscal 2020 impact. (in millions of US dollars) Balance,beginning of period Adoption of IFRS 16 Adjusted balance,beginning of period 12-week periods ended 12-week periods ended 12-week periods ended (in millions of US dollars, unless otherwise stated) July 21, 2019 April 28, 2019 Variation $ Quarter 2nd 3rd 4th 1st Weighted average (US cents per gallon)
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total 12-week period ended July 22, 2018       (in millions of US dollars)     Pre – IFRS16 As reported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16 impacts – attributable to shareholders of the Corporation July 21, 2019 July 22, 2018 (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % Balance Sheet Data(5): (1) Includes revenues derived from franchise fees, royalties, suppliers' rebates on some purchases made by franchisees and licensees, as well as from wholesale of merchandise. 52‑week period ended July 21, 2019 Quarter 2nd 3rd 4th 1st Weighted average (1) Please note that this information has been restated to reflect the cost of electronic payment expenses per corporate-store road transportation fuel gallons instead of per total road transportation fuel gallons.
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575       (in millions of US dollars)     Pre – IFRS 16 Asreported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16impacts –attributable to shareholders of the Corporation Revenues 59,117.6 - - 40.0 40.0 59,157.6 20.0 Assets Average for period Statement of Operations Data: Other Operating Data – excluding CAPL: Total assets (including $1.3 billion and $1.1 billion for CAPL as at July 21, 2019 and as at April 28, 2019, respectively) 25,431.6 25,033.0 398.6 (2) Includes revenues from the rental of assets and from the sale of aviation fuel, energy for stationary engines and marine fuel (until November 30, 2018). United States (US dollars per gallon) – excluding CAPL 2.72 2.42 2.51 2.66 2.57 52‑week period ended July 21, 2019
Acquisitions 8 - - - 8 Revenues 14,786.5 - - 9.0 9.0 14,795.5 3.0 Cost of sales 49,922.7 - - - - 49,922.7 - Current assets Canadian dollar 0.7517 0.7673 Merchandise and service revenues(1): Merchandise and service gross margin(1): Interest-bearing debt (including $686.1 million and $696.0 million for CAPL as at July 21, 2019 and as at April 28, 2019, respectively)(6)   9,410.4   9,575.3   (164.9) (3) Does not include services and other revenues (as described in footnotes 1 and 2 above). Growth in Canada and in Europe is calculated based on local currencies. Europe (US cents per liter) 80.56 75.28 74.59 77.35 76.86 Before deduction of expenses related to electronic payment modes 21.88 29.42 18.51 26.86 24.50
Openings / constructions / additions 29 - 4 24 57 Cost of sales 12,569.4 - - - - 12,569.4 - Gross profit 9,194.9 - - 40.0 40.0 9,234.9 20.0 Prepaid expenses 83.7 (26.4) 57.3 Norwegian krone 0.1155 0.1234 United States 2,657.8 2,609.1 1.9 Consolidated 34.6% 34.6% - Equity attributable to shareholders of the Corporation 9,409.8 8,913.7 496.1 (4) For company-operated stores only. Canada (CA cents per liter) 115.22 97.59 103.45 111.16 106.23 Expenses related to electronic payment modes(1) 4.55 4.31 4.40 4.70 4.50
Closures / disposals / withdrawals (35) (64) (20) (23) (142) Gross profit 2,217.1 - - 9.0 9.0 2,226.1 3.0 Property and equipment 11,129.9 (306.5) 10,823.4 Swedish krone 0.1055 0.1138 Europe 353.1 368.7 (4.2) United States 34.0% 33.5% 0.5 Indebtedness Ratios(7): (5) The balance sheet data as at April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16. 52‑week period ended July 22, 2018 After deduction of expenses related to electronic payment modes 17.33 25.11 14.11 22.16 20.00
Store conversion (3) 6 (3) - - Operating, selling, administrativeand general expenses 5,646.1   (390.0)   -   28.0   (362.0)   5,284.1 (361.0) Right-of-use assets - 2,835.0 2,835.0 Danish krone 0.1505 0.1575 Canada 575.6 544.4 5.7 Europe 41.5% 42.4% (0.9) Net interest-bearing debt/total capitalization(6)(8) 0.45 : 1 0.48 : 1 (6) This measure is presented including the following balance sheet accounts: Current portion of long-term debt, Long-term debt, Current portion of lease liabilities, and Lease liabilities. United States (US dollars per gallon) – excluding CAPL 2.47 2.30 2.51 2.76 2.50 52-week period ended July 22, 2018
Number of sites, end of period 9,793 456 1,033 1,216 12,498 Operating, selling, administrative and general expenses   1,312.5   (88.0)   -   6.0   (82.0)   1,230.5 (82.0) Restructuring costs 10.5 - - - - 10.5 - Intangible assets 944.4 (104.5) 839.9 Zloty 0.2629 0.2726 CAPL 19.8 26.3 (24.7) Canada 32.9% 34.5% (1.6) Leverage ratio(9) 1.94 : 1 2.09 : 1 (7) These measures are presented as if our investment in CAPL was reported using the equity method as we believe it allows a more relevant presentation of the underlying performance of the Corporation. Europe (US cents per liter) 68.23 71.19 78.32 75.07 73.01 Before deduction of expenses related to electronic payment modes 24.70 15.66 17.29 22.70 19.42
CAPL network 1,320 Restructuring costs 1.5 - - - - 1.5 - Gain on disposal of property andequipment and other assets (21.3   -   -   -   -   (21.3) - Other assets 306.6 27.7 334.3 Euro 1.2703 1.1734 Elimination of intercompany transactions with CAPL (0.5) (0.7) (28.6) Growth of same-store merchandise revenues(3): Adjusted leverage ratio(10) 2.03 : 1 2.18 : 1 (8) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by the addition of shareholders' equity and interest-bearing debt, net of cash and cash equivalents and temporary investments. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's long-term debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 0.39 : 1. We believe this measure is useful to investors and analysts. Canada (CA cents per liter) 101.46 108.11 110.39 117.95 109.37 Expenses related to electronic payment modes(1) 4.31 4.06 3.86 4.67 4.20
Circle K branded sites under licensing agreements 2,248 Loss on disposal of property and equipment and other assets   0.2   -   -   -   -   0.2 -   Depreciation, amortization andimpairment 1,070.7 (18.0) 388.0 - 370.0 1,440.7 356.0 Total assets 22,607.7 2,425.3 25,033.0 Ruble 0.0156 0.0160 Total merchandise and service revenues 3,605.8 3,547.8 1.6 United States(4) 2.5% 4.2% (1.7) Returns(7): (9) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by EBITDA (Earnings before Interest, Tax, Depreciation, Amortization and Impairment) adjusted for specific items. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's long-term debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 1.61 : 1. We believe this measure is useful to investors and analysts. After deduction of expenses related to electronic payment modes 20.39 11.60 13.43 18.03 15.22
Total network 16,066 Depreciation, amortization and impairment 301.5 (4.0) 90.0 - 86.0 387.5 81.0 Total operating expenses 6,706.0 (408.0) 388.0 28.0 8.0 6,714.0 (5.0) Road transportation fuel revenues: Europe 0.7% 7.3% (6.6) Return on equity(11) 22.0% 21.9% (10) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt plus the product of eight times rent expense, net of cash and cash equivalents and temporary investments divided by EBITDAR (Earnings before Interest, Tax, Depreciation, Amortization, Impairment and Rent expense) adjusted for specific items. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's interest bearing debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 2.29 : 1. We believe this measure is useful to investors and analysts.
Number of automated fuel stations included in theperiod‑end figures 981 - 12 - 993 Total operating expenses 1,615.7 (92.0) 90.0 6.0 4.0 1,619.7 (1.0) Operating income 2,488.9 408.0 (388.0) 12.0 32.0 2,520.9 25.0 Liabilities United States 6,801.5 7,159.5 (5.0) Canada(4) 0.3% 6.6% (6.3) Return on capital employed(12) 13.2% 12.6% (11) This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: net earnings divided by average equity for the corresponding period. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 22.3%. We believe this measure is useful to investors and analysts.
Operating income 601.4 92.0 (90.0) 3.0 5.0 606.4 4.0 Current liabilities Europe 1,919.8 1,952.5 (1.7) Road transportation fuel gross margin: (12) This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: earnings before income taxes and interests divided by average capital employed for the corresponding period. Capital employed represents total assets less short-term liabilities not bearing interests. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 14.1%. We believe this measure is useful to investors and analysts.
Share of earnings of joint ventures and associated companies     23.4     -     -     -     -     23.4 - Accounts payable and accrued liabilities 3,917.1 (24.6) 3,892.5 Canada 1,201.4 1,291.8 (7.0) United States (cents per gallon)(4) 26.86 22.70 18.3 (13) This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously reported adjusted net earnings per share was $0.88.
Share of earnings of joint ventures and associated companies     7.1     -     -     -     -     7.1 - Current portion of long-term debt 1,310.7 (40.5) 1,270.2 CAPL 567.4 633.7 (10.5) Europe (cents per liter) 8.44 9.21 (8.4)
EBITDA 3,583.0 390.0 - 12.0 402.0 3,984.0 381.0 Current portion of lease liabilities - 382.9 382.9 Elimination of intercompany transactions with CAPL (121.4) (140.3) (13.5) Canada (CA cents per liter)(4) 7.40 8.91 (16.9)
EBITDA 910.0 88.0 - 3.0 91.0 1,001.0 85.0 Long-term debt 5,640.7 (287.8) 5,352.9 Total road transportation fuel revenues 10,368.7 10,897.2 (4.8) Total volume of road transportation fuel sold:
Financial expenses 338.7 (20.0) 90.0 - 70.0 408.7 62.0 Lease liabilities - 2,569.3 2,569.3 Other revenues(2): United States (millions of gallons) 2,590.6 2,574.6 0.6
Financial expenses 79.4 (5.0) 21.0 - 16.0 95.4 14.0 Financial revenues (13.3) - - - - (13.3) - Long-term provisions 590.1 (3.0) 587.1 United States 6.9 5.4 27.8 Europe (millions of liters) 2,633.6 2,676.4 (1.6)
Financial revenues (2.7) - - - - (2.7) - Foreign exchange gain (5.3) - - - - (5.3) - Deferred credits and other liabilities 349.0 (158.3) 190.7 Europe 155.1 319.0 (51.4) Canada (millions of liters) 1,472.6 1,469.2 0.2
Foreign exchange loss 1.0 - - - - 1.0 - Net financial expenses 320.1 (20.0) 90.0 - 70.0 390.1 62.0 Deferred income taxes 1,037.1 (3.2) 1,033.9 Canada 4.8 6.2 (22.6) Growth of (decrease in) same-store road transportation fuel volume(4):
Net financial expenses 77.7 (5.0) 21.0 - 16.0 93.7 14.0 Earnings before income taxes 2,192.2 428.0 (478.0) 12.0 (38.0) 2,154.2 (37.0) Total liabilities 13,426.6 2,434.8 15,861.4 CAPL 25.8 15.2 69.7 United States 0.6% 0.6% -
Earnings before income taxes 530.8 97.0 (111.0) 3.0 (11.0) 519.8 (10.0) Income taxes 370.9 108.0 (120.0) 3.0 (9.0) 361.9 (9.0) Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7) Europe (1.6%) (0.1%) (1.5)
Income taxes 88.2 25.0 (28.0) 1.0 (2.0) 86.2 (2.0) Net earnings including non-controlling interests 1,821.3 320.0 (358.0) 9.0 (29.0) 1,792.3 (28.0) Equity Total other revenues 188.5 341.5 (44.8) Canada 0.4% (3.3%) 3.7
Net earnings including non-controlling interests 442.6 72.0 (83.0) 2.0 (9.0) 433.6 (8.0) Net loss attributable to non-controlling interests 12.6 (3.0) 20.0 (16.0) 1.0 13.6 - Retained earnings 9,053.5 (9.5) 9,044.0 Total revenues 14,163.0 14,786.5 (4.2)
Net loss attributable to non-controlling interests 13.0 - 5.0 (4.0) 1.0 14.0 - Net earnings attributable toshareholders of the Corporation 1,833.9   317.0   (338.0)   (7.0)   (28.0)   1,805.9 (28.0) Total equity 9,181.1 (9.5) 9,171.6 Merchandise and service gross profit(1):
Net earnings attributable to shareholders of the Corporation 455.6   72.0   (78.0)   (2.0)   (8.0)   447.6 (8.0) United States 904.9 874.8 3.4
Europe 146.5 156.3 (6.3)
Canada 189.5 187.9 0.9
CAPL 4.6 6.4 (28.1)
Elimination of intercompany transactions with CAPL (0.5) (0.6) (16.7)
Total merchandise and service gross profit 1,245.0 1,224.8 1.6
Road transportation fuel gross profit:
United States 672.5 560.0 20.1
Europe 222.2 246.5 (9.9)
Canada 81.5 100.0 (18.5)
CAPL 23.1 26.6 (13.2)
Total road transportation fuel gross profit 999.3 933.1 7.1
Other revenues gross profit(2):
United States 6.9 5.3 30.2
Europe 31.3 36.8 (14.9)
Canada 4.8 6.2 (22.6)
CAPL 25.8 15.2 69.7
Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7)
Total other revenues gross profit 64.7 59.2 9.3
Total gross profit 2,309.0 2,217.1 4.1
Operating, selling, administrative and general expenses
Excluding CAPL 1,224.3 1,294.7 (5.4)
CAPL 20.2 22.6 (10.6)
Elimination of intercompany transactions with CAPL (4.4) (4.8) (8.3)
Total Operating, selling, administrative and general expenses 1,240.1 1,312.5 (5.5
Restructuring costs - 1.5 (100.0)
Loss on disposal of property and equipment and other assets 10.1 0.2 4,950.0
Depreciation, amortization and impairment
Excluding CAPL 284.2 213.2 33.3
CAPL 22.9 88.3 (74.1)
Total depreciation, amortization and impairment 307.1 301.5 1.9
Operating income
Excluding CAPL 743.0 671.3 10.7
CAPL 8.9 (69.8 (112.8)
Elimination of intercompany transactions with CAPL (0.2) (0.1) 100.0
Total operating income 751.7 601.4 25.0
Net financial expenses 87.0 77.7 0.12
Net earnings including non-controlling interests 536.0 442.6 21.1
Net loss attributable to non-controlling interests 2.8 13.0 (78.5)
Net earnings attributable to shareholders of the Corporation 538.8 455.6 18.3
Per Share Data:
Basic net earnings per share (dollars per share) 0.96 0.81 18.5
Diluted net earnings per share (dollars per share) 0.95 0.81 17.3
Adjusted diluted net earnings per share (dollars per share)(13) 0.97 0.87 11.5

 

As demonstrated by the table above, road transportation fuel margins in the United States can be volatile from one quarter to another but tend to be relatively stable or to increase over longer periods. Margin volatility and expenses related to electronic payment modes are not as significant in Europe and Canada.

Other revenues gross profit

In the first quarter of fiscal 2020, other revenues gross profit was $64.7 million, an increase of $5.5 million compared with the corresponding period of fiscal 2019. Excluding CAPL's gross profit, other revenues gross profit decreased by $5.3 million in the first quarter of fiscal 2020. The decrease is primarily driven by the disposal of our marine fuel business, which had an impact of approximately $3.0 million on the first quarter of fiscal 2020.

Operating, selling, administrative and general expenses ("expenses")

For the first quarter of fiscal 2020, expenses decreased by 5.5%, compared with the corresponding period of fiscal 2019. If we exclude certain items that are not considered indicative of future trends, expenses increased by 2.3%:

 

12-week period ended July 21, 2019 52-week period ended April 28, 2019 (1)  Depreciation and interest expenses are based on our assessment of Fiscal 2020 impact. (in millions of US dollars) Balance,beginning of period Adoption of IFRS 16 Adjusted balance,beginning of period 12-week periods ended 12-week periods ended 12-week periods ended (in millions of US dollars, unless otherwise stated) July 21, 2019 April 28, 2019 Variation $ Quarter 2nd 3rd 4th 1st Weighted average (US cents per gallon) 12-week period ended July 21, 2019
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total 12-week period ended July 22, 2018       (in millions of US dollars)     Pre – IFRS16 As reported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16 impacts – attributable to shareholders of the Corporation July 21, 2019 July 22, 2018 (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % Balance Sheet Data(5): (1) Includes revenues derived from franchise fees, royalties, suppliers' rebates on some purchases made by franchisees and licensees, as well as from wholesale of merchandise. 52‑week period ended July 21, 2019 Quarter 2nd 3rd 4th 1st Weighted average (1) Please note that this information has been restated to reflect the cost of electronic payment expenses per corporate-store road transportation fuel gallons instead of per total road transportation fuel gallons. Total variance, as reported (5.5)%
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575       (in millions of US dollars)     Pre – IFRS 16 Asreported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16impacts –attributable to shareholders of the Corporation Revenues 59,117.6 - - 40.0 40.0 59,157.6 20.0 Assets Average for period Statement of Operations Data: Other Operating Data – excluding CAPL: Total assets (including $1.3 billion and $1.1 billion for CAPL as at July 21, 2019 and as at April 28, 2019, respectively) 25,431.6 25,033.0 398.6 (2) Includes revenues from the rental of assets and from the sale of aviation fuel, energy for stationary engines and marine fuel (until November 30, 2018). United States (US dollars per gallon) – excluding CAPL 2.72 2.42 2.51 2.66 2.57 52‑week period ended July 21, 2019 Adjusted for:
Acquisitions 8 - - - 8 Revenues 14,786.5 - - 9.0 9.0 14,795.5 3.0 Cost of sales 49,922.7 - - - - 49,922.7 - Current assets Canadian dollar 0.7517 0.7673 Merchandise and service revenues(1): Merchandise and service gross margin(1): Interest-bearing debt (including $686.1 million and $696.0 million for CAPL as at July 21, 2019 and as at April 28, 2019, respectively)(6)   9,410.4   9,575.3   (164.9) (3) Does not include services and other revenues (as described in footnotes 1 and 2 above). Growth in Canada and in Europe is calculated based on local currencies. Europe (US cents per liter) 80.56 75.28 74.59 77.35 76.86 Before deduction of expenses related to electronic payment modes 21.88 29.42 18.51 26.86 24.50 Decrease in rent expense from transition to IFRS 16 6.2%
Openings / constructions / additions 29 - 4 24 57 Cost of sales 12,569.4 - - - - 12,569.4 - Gross profit 9,194.9 - - 40.0 40.0 9,234.9 20.0 Prepaid expenses 83.7 (26.4) 57.3 Norwegian krone 0.1155 0.1234 United States 2,657.8 2,609.1 1.9 Consolidated 34.6% 34.6% - Equity attributable to shareholders of the Corporation 9,409.8 8,913.7 496.1 (4) For company-operated stores only. Canada (CA cents per liter) 115.22 97.59 103.45 111.16 106.23 Expenses related to electronic payment modes(1) 4.55 4.31 4.40 4.70 4.50 Decrease from the net impact of foreign exchange translation 1.4%
Closures / disposals / withdrawals (35) (64) (20) (23) (142) Gross profit 2,217.1 - - 9.0 9.0 2,226.1 3.0 Property and equipment 11,129.9 (306.5) 10,823.4 Swedish krone 0.1055 0.1138 Europe 353.1 368.7 (4.2) United States 34.0% 33.5% 0.5 Indebtedness Ratios(7): (5) The balance sheet data as at April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16. 52‑week period ended July 22, 2018 After deduction of expenses related to electronic payment modes 17.33 25.11 14.11 22.16 20.00 Decrease in CAPL's expenses 0.2%
Store conversion (3) 6 (3) - - Operating, selling, administrativeand general expenses 5,646.1   (390.0)   -   28.0   (362.0)   5,284.1 (361.0) Right-of-use assets - 2,835.0 2,835.0 Danish krone 0.1505 0.1575 Canada 575.6 544.4 5.7 Europe 41.5% 42.4% (0.9) Net interest-bearing debt/total capitalization(6)(8) 0.45 : 1 0.48 : 1 (6) This measure is presented including the following balance sheet accounts: Current portion of long-term debt, Long-term debt, Current portion of lease liabilities, and Lease liabilities. United States (US dollars per gallon) – excluding CAPL 2.47 2.30 2.51 2.76 2.50 52-week period ended July 22, 2018 Disposal of our marine fuel business 0.1%
Number of sites, end of period 9,793 456 1,033 1,216 12,498 Operating, selling, administrative and general expenses   1,312.5   (88.0)   -   6.0   (82.0)   1,230.5 (82.0) Restructuring costs 10.5 - - - - 10.5 - Intangible assets 944.4 (104.5) 839.9 Zloty 0.2629 0.2726 CAPL 19.8 26.3 (24.7) Canada 32.9% 34.5% (1.6) Leverage ratio(9) 1.94 : 1 2.09 : 1 (7) These measures are presented as if our investment in CAPL was reported using the equity method as we believe it allows a more relevant presentation of the underlying performance of the Corporation. Europe (US cents per liter) 68.23 71.19 78.32 75.07 73.01 Before deduction of expenses related to electronic payment modes 24.70 15.66 17.29 22.70 19.42 Increase from higher electronic payment fees, excluding acquisitions (0.1)%
CAPL network 1,320 Restructuring costs 1.5 - - - - 1.5 - Gain on disposal of property andequipment and other assets (21.3   -   -   -   -   (21.3) - Other assets 306.6 27.7 334.3 Euro 1.2703 1.1734 Elimination of intercompany transactions with CAPL (0.5) (0.7) (28.6) Growth of same-store merchandise revenues(3): Adjusted leverage ratio(10) 2.03 : 1 2.18 : 1 (8) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by the addition of shareholders' equity and interest-bearing debt, net of cash and cash equivalents and temporary investments. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's long-term debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 0.39 : 1. We believe this measure is useful to investors and analysts. Canada (CA cents per liter) 101.46 108.11 110.39 117.95 109.37 Expenses related to electronic payment modes(1) 4.31 4.06 3.86 4.67 4.20 Remaining variance 2.3%
Circle K branded sites under licensing agreements 2,248 Loss on disposal of property and equipment and other assets   0.2   -   -   -   -   0.2 -   Depreciation, amortization andimpairment 1,070.7 (18.0) 388.0 - 370.0 1,440.7 356.0 Total assets 22,607.7 2,425.3 25,033.0 Ruble 0.0156 0.0160 Total merchandise and service revenues 3,605.8 3,547.8 1.6 United States(4) 2.5% 4.2% (1.7) Returns(7): (9) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by EBITDA (Earnings before Interest, Tax, Depreciation, Amortization and Impairment) adjusted for specific items. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's long-term debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 1.61 : 1. We believe this measure is useful to investors and analysts. After deduction of expenses related to electronic payment modes 20.39 11.60 13.43 18.03 15.22
Total network 16,066 Depreciation, amortization and impairment 301.5 (4.0) 90.0 - 86.0 387.5 81.0 Total operating expenses 6,706.0 (408.0) 388.0 28.0 8.0 6,714.0 (5.0) Road transportation fuel revenues: Europe 0.7% 7.3% (6.6) Return on equity(11) 22.0% 21.9% (10) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt plus the product of eight times rent expense, net of cash and cash equivalents and temporary investments divided by EBITDAR (Earnings before Interest, Tax, Depreciation, Amortization, Impairment and Rent expense) adjusted for specific items. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's interest bearing debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 2.29 : 1. We believe this measure is useful to investors and analysts.
Number of automated fuel stations included in theperiod‑end figures 981 - 12 - 993 Total operating expenses 1,615.7 (92.0) 90.0 6.0 4.0 1,619.7 (1.0) Operating income 2,488.9 408.0 (388.0) 12.0 32.0 2,520.9 25.0 Liabilities United States 6,801.5 7,159.5 (5.0) Canada(4) 0.3% 6.6% (6.3) Return on capital employed(12) 13.2% 12.6% (11) This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: net earnings divided by average equity for the corresponding period. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 22.3%. We believe this measure is useful to investors and analysts.
Operating income 601.4 92.0 (90.0) 3.0 5.0 606.4 4.0 Current liabilities Europe 1,919.8 1,952.5 (1.7) Road transportation fuel gross margin: (12) This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: earnings before income taxes and interests divided by average capital employed for the corresponding period. Capital employed represents total assets less short-term liabilities not bearing interests. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 14.1%. We believe this measure is useful to investors and analysts.
Share of earnings of joint ventures and associated companies     23.4     -     -     -     -     23.4 - Accounts payable and accrued liabilities 3,917.1 (24.6) 3,892.5 Canada 1,201.4 1,291.8 (7.0) United States (cents per gallon)(4) 26.86 22.70 18.3 (13) This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously reported adjusted net earnings per share was $0.88.
Share of earnings of joint ventures and associated companies     7.1     -     -     -     -     7.1 - Current portion of long-term debt 1,310.7 (40.5) 1,270.2 CAPL 567.4 633.7 (10.5) Europe (cents per liter) 8.44 9.21 (8.4)
EBITDA 3,583.0 390.0 - 12.0 402.0 3,984.0 381.0 Current portion of lease liabilities - 382.9 382.9 Elimination of intercompany transactions with CAPL (121.4) (140.3) (13.5) Canada (CA cents per liter)(4) 7.40 8.91 (16.9)
EBITDA 910.0 88.0 - 3.0 91.0 1,001.0 85.0 Long-term debt 5,640.7 (287.8) 5,352.9 Total road transportation fuel revenues 10,368.7 10,897.2 (4.8) Total volume of road transportation fuel sold:
Financial expenses 338.7 (20.0) 90.0 - 70.0 408.7 62.0 Lease liabilities - 2,569.3 2,569.3 Other revenues(2): United States (millions of gallons) 2,590.6 2,574.6 0.6
Financial expenses 79.4 (5.0) 21.0 - 16.0 95.4 14.0 Financial revenues (13.3) - - - - (13.3) - Long-term provisions 590.1 (3.0) 587.1 United States 6.9 5.4 27.8 Europe (millions of liters) 2,633.6 2,676.4 (1.6)
Financial revenues (2.7) - - - - (2.7) - Foreign exchange gain (5.3) - - - - (5.3) - Deferred credits and other liabilities 349.0 (158.3) 190.7 Europe 155.1 319.0 (51.4) Canada (millions of liters) 1,472.6 1,469.2 0.2
Foreign exchange loss 1.0 - - - - 1.0 - Net financial expenses 320.1 (20.0) 90.0 - 70.0 390.1 62.0 Deferred income taxes 1,037.1 (3.2) 1,033.9 Canada 4.8 6.2 (22.6) Growth of (decrease in) same-store road transportation fuel volume(4):
Net financial expenses 77.7 (5.0) 21.0 - 16.0 93.7 14.0 Earnings before income taxes 2,192.2 428.0 (478.0) 12.0 (38.0) 2,154.2 (37.0) Total liabilities 13,426.6 2,434.8 15,861.4 CAPL 25.8 15.2 69.7 United States 0.6% 0.6% -
Earnings before income taxes 530.8 97.0 (111.0) 3.0 (11.0) 519.8 (10.0) Income taxes 370.9 108.0 (120.0) 3.0 (9.0) 361.9 (9.0) Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7) Europe (1.6%) (0.1%) (1.5)
Income taxes 88.2 25.0 (28.0) 1.0 (2.0) 86.2 (2.0) Net earnings including non-controlling interests 1,821.3 320.0 (358.0) 9.0 (29.0) 1,792.3 (28.0) Equity Total other revenues 188.5 341.5 (44.8) Canada 0.4% (3.3%) 3.7
Net earnings including non-controlling interests 442.6 72.0 (83.0) 2.0 (9.0) 433.6 (8.0) Net loss attributable to non-controlling interests 12.6 (3.0) 20.0 (16.0) 1.0 13.6 - Retained earnings 9,053.5 (9.5) 9,044.0 Total revenues 14,163.0 14,786.5 (4.2)
Net loss attributable to non-controlling interests 13.0 - 5.0 (4.0) 1.0 14.0 - Net earnings attributable toshareholders of the Corporation 1,833.9   317.0   (338.0)   (7.0)   (28.0)   1,805.9 (28.0) Total equity 9,181.1 (9.5) 9,171.6 Merchandise and service gross profit(1):
Net earnings attributable to shareholders of the Corporation 455.6   72.0   (78.0)   (2.0)   (8.0)   447.6 (8.0) United States 904.9 874.8 3.4
Europe 146.5 156.3 (6.3)
Canada 189.5 187.9 0.9
CAPL 4.6 6.4 (28.1)
Elimination of intercompany transactions with CAPL (0.5) (0.6) (16.7)
Total merchandise and service gross profit 1,245.0 1,224.8 1.6
Road transportation fuel gross profit:
United States 672.5 560.0 20.1
Europe 222.2 246.5 (9.9)
Canada 81.5 100.0 (18.5)
CAPL 23.1 26.6 (13.2)
Total road transportation fuel gross profit 999.3 933.1 7.1
Other revenues gross profit(2):
United States 6.9 5.3 30.2
Europe 31.3 36.8 (14.9)
Canada 4.8 6.2 (22.6)
CAPL 25.8 15.2 69.7
Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7)
Total other revenues gross profit 64.7 59.2 9.3
Total gross profit 2,309.0 2,217.1 4.1
Operating, selling, administrative and general expenses
Excluding CAPL 1,224.3 1,294.7 (5.4)
CAPL 20.2 22.6 (10.6)
Elimination of intercompany transactions with CAPL (4.4) (4.8) (8.3)
Total Operating, selling, administrative and general expenses 1,240.1 1,312.5 (5.5
Restructuring costs - 1.5 (100.0)
Loss on disposal of property and equipment and other assets 10.1 0.2 4,950.0
Depreciation, amortization and impairment
Excluding CAPL 284.2 213.2 33.3
CAPL 22.9 88.3 (74.1)
Total depreciation, amortization and impairment 307.1 301.5 1.9
Operating income
Excluding CAPL 743.0 671.3 10.7
CAPL 8.9 (69.8 (112.8)
Elimination of intercompany transactions with CAPL (0.2) (0.1) 100.0
Total operating income 751.7 601.4 25.0
Net financial expenses 87.0 77.7 0.12
Net earnings including non-controlling interests 536.0 442.6 21.1
Net loss attributable to non-controlling interests 2.8 13.0 (78.5)
Net earnings attributable to shareholders of the Corporation 538.8 455.6 18.3
Per Share Data:
Basic net earnings per share (dollars per share) 0.96 0.81 18.5
Diluted net earnings per share (dollars per share) 0.95 0.81 17.3
Adjusted diluted net earnings per share (dollars per share)(13) 0.97 0.87 11.5

 

Excluding the conversion of our Esso stores from the agent model to the corporate model, the remaining variance for the first quarter of fiscal 2020 would have been only 1.7%. Growth in expenses was driven by normal inflation, higher expenses needed to support our growth and higher minimum wages in certain regions. We continue to rigorously focus on controlling costs throughout our organization, while ensuring we maintain the quality of service we offer to our customers.

Earnings before interest, taxes, depreciation, amortization and impairment (EBITDA) and adjusted EBITDA

During the first quarter of fiscal 2020, EBITDA increased from $910.0 million to $1,065.4 million, an increase of 17.1% compared with the same quarter last year. Excluding the specific items shown in the table below from EBITDA of the first quarter of fiscal 2020 and of the corresponding period of fiscal 2019, the adjusted EBITDA for the first quarter of fiscal 2020 increased by $58.3 million or 5.9% compared with the corresponding period of the previous fiscal year, driven by increased fuel margins in the United States and by organic growth, partly offset by the net negative impact from the translation of our Canadian and European operations into US dollars. The variation in exchange rates had a net negative impact of approximately $15.0 million.

It should be noted that EBITDA and adjusted EBITDA are not performance measures defined by IFRS, but we, as well as investors and analysts, consider that those performance measures facilitate the evaluation of our ongoing operations and our ability to generate cash flows to fund our cash requirements, including our capital expenditures program and payment of dividends. Note that our definition of these measures may differ from the one used by other public corporations.

 

12-week period ended July 21, 2019 52-week period ended April 28, 2019 (1)  Depreciation and interest expenses are based on our assessment of Fiscal 2020 impact. (in millions of US dollars) Balance,beginning of period Adoption of IFRS 16 Adjusted balance,beginning of period 12-week periods ended 12-week periods ended 12-week periods ended (in millions of US dollars, unless otherwise stated) July 21, 2019 April 28, 2019 Variation $ Quarter 2nd 3rd 4th 1st Weighted average (US cents per gallon) 12-week period ended July 21, 2019 12-week periods ended
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total 12-week period ended July 22, 2018       (in millions of US dollars)     Pre – IFRS16 As reported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16 impacts – attributable to shareholders of the Corporation July 21, 2019 July 22, 2018 (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % Balance Sheet Data(5): (1) Includes revenues derived from franchise fees, royalties, suppliers' rebates on some purchases made by franchisees and licensees, as well as from wholesale of merchandise. 52‑week period ended July 21, 2019 Quarter 2nd 3rd 4th 1st Weighted average (1) Please note that this information has been restated to reflect the cost of electronic payment expenses per corporate-store road transportation fuel gallons instead of per total road transportation fuel gallons. Total variance, as reported (5.5)% (in millions of US dollars) July 21, 2019 July 22, 2018
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575       (in millions of US dollars)     Pre – IFRS 16 Asreported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16impacts –attributable to shareholders of the Corporation Revenues 59,117.6 - - 40.0 40.0 59,157.6 20.0 Assets Average for period Statement of Operations Data: Other Operating Data – excluding CAPL: Total assets (including $1.3 billion and $1.1 billion for CAPL as at July 21, 2019 and as at April 28, 2019, respectively) 25,431.6 25,033.0 398.6 (2) Includes revenues from the rental of assets and from the sale of aviation fuel, energy for stationary engines and marine fuel (until November 30, 2018). United States (US dollars per gallon) – excluding CAPL 2.72 2.42 2.51 2.66 2.57 52‑week period ended July 21, 2019 Adjusted for: Net earnings including non-controlling interests, as reported 536.0 442.6
Acquisitions 8 - - - 8 Revenues 14,786.5 - - 9.0 9.0 14,795.5 3.0 Cost of sales 49,922.7 - - - - 49,922.7 - Current assets Canadian dollar 0.7517 0.7673 Merchandise and service revenues(1): Merchandise and service gross margin(1): Interest-bearing debt (including $686.1 million and $696.0 million for CAPL as at July 21, 2019 and as at April 28, 2019, respectively)(6)   9,410.4   9,575.3   (164.9) (3) Does not include services and other revenues (as described in footnotes 1 and 2 above). Growth in Canada and in Europe is calculated based on local currencies. Europe (US cents per liter) 80.56 75.28 74.59 77.35 76.86 Before deduction of expenses related to electronic payment modes 21.88 29.42 18.51 26.86 24.50 Decrease in rent expense from transition to IFRS 16 6.2% Add:
Openings / constructions / additions 29 - 4 24 57 Cost of sales 12,569.4 - - - - 12,569.4 - Gross profit 9,194.9 - - 40.0 40.0 9,234.9 20.0 Prepaid expenses 83.7 (26.4) 57.3 Norwegian krone 0.1155 0.1234 United States 2,657.8 2,609.1 1.9 Consolidated 34.6% 34.6% - Equity attributable to shareholders of the Corporation 9,409.8 8,913.7 496.1 (4) For company-operated stores only. Canada (CA cents per liter) 115.22 97.59 103.45 111.16 106.23 Expenses related to electronic payment modes(1) 4.55 4.31 4.40 4.70 4.50 Decrease from the net impact of foreign exchange translation 1.4% Income taxes 135.3 88.2
Closures / disposals / withdrawals (35) (64) (20) (23) (142) Gross profit 2,217.1 - - 9.0 9.0 2,226.1 3.0 Property and equipment 11,129.9 (306.5) 10,823.4 Swedish krone 0.1055 0.1138 Europe 353.1 368.7 (4.2) United States 34.0% 33.5% 0.5 Indebtedness Ratios(7): (5) The balance sheet data as at April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16. 52‑week period ended July 22, 2018 After deduction of expenses related to electronic payment modes 17.33 25.11 14.11 22.16 20.00 Decrease in CAPL's expenses 0.2% Net financial expenses 87.0 77.7
Store conversion (3) 6 (3) - - Operating, selling, administrativeand general expenses 5,646.1   (390.0)   -   28.0   (362.0)   5,284.1 (361.0) Right-of-use assets - 2,835.0 2,835.0 Danish krone 0.1505 0.1575 Canada 575.6 544.4 5.7 Europe 41.5% 42.4% (0.9) Net interest-bearing debt/total capitalization(6)(8) 0.45 : 1 0.48 : 1 (6) This measure is presented including the following balance sheet accounts: Current portion of long-term debt, Long-term debt, Current portion of lease liabilities, and Lease liabilities. United States (US dollars per gallon) – excluding CAPL 2.47 2.30 2.51 2.76 2.50 52-week period ended July 22, 2018 Disposal of our marine fuel business 0.1% Depreciation, amortization and impairment 307.1 301.5
Number of sites, end of period 9,793 456 1,033 1,216 12,498 Operating, selling, administrative and general expenses   1,312.5   (88.0)   -   6.0   (82.0)   1,230.5 (82.0) Restructuring costs 10.5 - - - - 10.5 - Intangible assets 944.4 (104.5) 839.9 Zloty 0.2629 0.2726 CAPL 19.8 26.3 (24.7) Canada 32.9% 34.5% (1.6) Leverage ratio(9) 1.94 : 1 2.09 : 1 (7) These measures are presented as if our investment in CAPL was reported using the equity method as we believe it allows a more relevant presentation of the underlying performance of the Corporation. Europe (US cents per liter) 68.23 71.19 78.32 75.07 73.01 Before deduction of expenses related to electronic payment modes 24.70 15.66 17.29 22.70 19.42 Increase from higher electronic payment fees, excluding acquisitions (0.1)% EBITDA 1,065.4 910.0
CAPL network 1,320 Restructuring costs 1.5 - - - - 1.5 - Gain on disposal of property andequipment and other assets (21.3   -   -   -   -   (21.3) - Other assets 306.6 27.7 334.3 Euro 1.2703 1.1734 Elimination of intercompany transactions with CAPL (0.5) (0.7) (28.6) Growth of same-store merchandise revenues(3): Adjusted leverage ratio(10) 2.03 : 1 2.18 : 1 (8) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by the addition of shareholders' equity and interest-bearing debt, net of cash and cash equivalents and temporary investments. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's long-term debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 0.39 : 1. We believe this measure is useful to investors and analysts. Canada (CA cents per liter) 101.46 108.11 110.39 117.95 109.37 Expenses related to electronic payment modes(1) 4.31 4.06 3.86 4.67 4.20 Remaining variance 2.3% Adjusted for:
Circle K branded sites under licensing agreements 2,248 Loss on disposal of property and equipment and other assets   0.2   -   -   -   -   0.2 -   Depreciation, amortization andimpairment 1,070.7 (18.0) 388.0 - 370.0 1,440.7 356.0 Total assets 22,607.7 2,425.3 25,033.0 Ruble 0.0156 0.0160 Total merchandise and service revenues 3,605.8 3,547.8 1.6 United States(4) 2.5% 4.2% (1.7) Returns(7): (9) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by EBITDA (Earnings before Interest, Tax, Depreciation, Amortization and Impairment) adjusted for specific items. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's long-term debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 1.61 : 1. We believe this measure is useful to investors and analysts. After deduction of expenses related to electronic payment modes 20.39 11.60 13.43 18.03 15.22 EBITDA attributable to non-controlling interests (24.8) (14.5)
Total network 16,066 Depreciation, amortization and impairment 301.5 (4.0) 90.0 - 86.0 387.5 81.0 Total operating expenses 6,706.0 (408.0) 388.0 28.0 8.0 6,714.0 (5.0) Road transportation fuel revenues: Europe 0.7% 7.3% (6.6) Return on equity(11) 22.0% 21.9% (10) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt plus the product of eight times rent expense, net of cash and cash equivalents and temporary investments divided by EBITDAR (Earnings before Interest, Tax, Depreciation, Amortization, Impairment and Rent expense) adjusted for specific items. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's interest bearing debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 2.29 : 1. We believe this measure is useful to investors and analysts. Acquisition costs 0.2 0.5
Number of automated fuel stations included in theperiod‑end figures 981 - 12 - 993 Total operating expenses 1,615.7 (92.0) 90.0 6.0 4.0 1,619.7 (1.0) Operating income 2,488.9 408.0 (388.0) 12.0 32.0 2,520.9 25.0 Liabilities United States 6,801.5 7,159.5 (5.0) Canada(4) 0.3% 6.6% (6.3) Return on capital employed(12) 13.2% 12.6% (11) This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: net earnings divided by average equity for the corresponding period. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 22.3%. We believe this measure is useful to investors and analysts. Restructuring costs attributable to shareholders of the Corporation - 1.5
Operating income 601.4 92.0 (90.0) 3.0 5.0 606.4 4.0 Current liabilities Europe 1,919.8 1,952.5 (1.7) Road transportation fuel gross margin: (12) This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: earnings before income taxes and interests divided by average capital employed for the corresponding period. Capital employed represents total assets less short-term liabilities not bearing interests. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 14.1%. We believe this measure is useful to investors and analysts. Adjusted EBITDA, as previously reported 1,040.8 897.5
Share of earnings of joint ventures and associated companies     23.4     -     -     -     -     23.4 - Accounts payable and accrued liabilities 3,917.1 (24.6) 3,892.5 Canada 1,201.4 1,291.8 (7.0) United States (cents per gallon)(4) 26.86 22.70 18.3 (13) This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously reported adjusted net earnings per share was $0.88. Estimated pro forma impact from transition to IFRS 16 attributable to shareholders of the Corporation - 85.0
Share of earnings of joint ventures and associated companies     7.1     -     -     -     -     7.1 - Current portion of long-term debt 1,310.7 (40.5) 1,270.2 CAPL 567.4 633.7 (10.5) Europe (cents per liter) 8.44 9.21 (8.4) Adjusted EBITDA 1,040.8 982.5
EBITDA 3,583.0 390.0 - 12.0 402.0 3,984.0 381.0 Current portion of lease liabilities - 382.9 382.9 Elimination of intercompany transactions with CAPL (121.4) (140.3) (13.5) Canada (CA cents per liter)(4) 7.40 8.91 (16.9)
EBITDA 910.0 88.0 - 3.0 91.0 1,001.0 85.0 Long-term debt 5,640.7 (287.8) 5,352.9 Total road transportation fuel revenues 10,368.7 10,897.2 (4.8) Total volume of road transportation fuel sold:
Financial expenses 338.7 (20.0) 90.0 - 70.0 408.7 62.0 Lease liabilities - 2,569.3 2,569.3 Other revenues(2): United States (millions of gallons) 2,590.6 2,574.6 0.6
Financial expenses 79.4 (5.0) 21.0 - 16.0 95.4 14.0 Financial revenues (13.3) - - - - (13.3) - Long-term provisions 590.1 (3.0) 587.1 United States 6.9 5.4 27.8 Europe (millions of liters) 2,633.6 2,676.4 (1.6)
Financial revenues (2.7) - - - - (2.7) - Foreign exchange gain (5.3) - - - - (5.3) - Deferred credits and other liabilities 349.0 (158.3) 190.7 Europe 155.1 319.0 (51.4) Canada (millions of liters) 1,472.6 1,469.2 0.2
Foreign exchange loss 1.0 - - - - 1.0 - Net financial expenses 320.1 (20.0) 90.0 - 70.0 390.1 62.0 Deferred income taxes 1,037.1 (3.2) 1,033.9 Canada 4.8 6.2 (22.6) Growth of (decrease in) same-store road transportation fuel volume(4):
Net financial expenses 77.7 (5.0) 21.0 - 16.0 93.7 14.0 Earnings before income taxes 2,192.2 428.0 (478.0) 12.0 (38.0) 2,154.2 (37.0) Total liabilities 13,426.6 2,434.8 15,861.4 CAPL 25.8 15.2 69.7 United States 0.6% 0.6% -
Earnings before income taxes 530.8 97.0 (111.0) 3.0 (11.0) 519.8 (10.0) Income taxes 370.9 108.0 (120.0) 3.0 (9.0) 361.9 (9.0) Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7) Europe (1.6%) (0.1%) (1.5)
Income taxes 88.2 25.0 (28.0) 1.0 (2.0) 86.2 (2.0) Net earnings including non-controlling interests 1,821.3 320.0 (358.0) 9.0 (29.0) 1,792.3 (28.0) Equity Total other revenues 188.5 341.5 (44.8) Canada 0.4% (3.3%) 3.7
Net earnings including non-controlling interests 442.6 72.0 (83.0) 2.0 (9.0) 433.6 (8.0) Net loss attributable to non-controlling interests 12.6 (3.0) 20.0 (16.0) 1.0 13.6 - Retained earnings 9,053.5 (9.5) 9,044.0 Total revenues 14,163.0 14,786.5 (4.2)
Net loss attributable to non-controlling interests 13.0 - 5.0 (4.0) 1.0 14.0 - Net earnings attributable toshareholders of the Corporation 1,833.9   317.0   (338.0)   (7.0)   (28.0)   1,805.9 (28.0) Total equity 9,181.1 (9.5) 9,171.6 Merchandise and service gross profit(1):
Net earnings attributable to shareholders of the Corporation 455.6   72.0   (78.0)   (2.0)   (8.0)   447.6 (8.0) United States 904.9 874.8 3.4
Europe 146.5 156.3 (6.3)
Canada 189.5 187.9 0.9
CAPL 4.6 6.4 (28.1)
Elimination of intercompany transactions with CAPL (0.5) (0.6) (16.7)
Total merchandise and service gross profit 1,245.0 1,224.8 1.6
Road transportation fuel gross profit:
United States 672.5 560.0 20.1
Europe 222.2 246.5 (9.9)
Canada 81.5 100.0 (18.5)
CAPL 23.1 26.6 (13.2)
Total road transportation fuel gross profit 999.3 933.1 7.1
Other revenues gross profit(2):
United States 6.9 5.3 30.2
Europe 31.3 36.8 (14.9)
Canada 4.8 6.2 (22.6)
CAPL 25.8 15.2 69.7
Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7)
Total other revenues gross profit 64.7 59.2 9.3
Total gross profit 2,309.0 2,217.1 4.1
Operating, selling, administrative and general expenses
Excluding CAPL 1,224.3 1,294.7 (5.4)
CAPL 20.2 22.6 (10.6)
Elimination of intercompany transactions with CAPL (4.4) (4.8) (8.3)
Total Operating, selling, administrative and general expenses 1,240.1 1,312.5 (5.5
Restructuring costs - 1.5 (100.0)
Loss on disposal of property and equipment and other assets 10.1 0.2 4,950.0
Depreciation, amortization and impairment
Excluding CAPL 284.2 213.2 33.3
CAPL 22.9 88.3 (74.1)
Total depreciation, amortization and impairment 307.1 301.5 1.9
Operating income
Excluding CAPL 743.0 671.3 10.7
CAPL 8.9 (69.8 (112.8)
Elimination of intercompany transactions with CAPL (0.2) (0.1) 100.0
Total operating income 751.7 601.4 25.0
Net financial expenses 87.0 77.7 0.12
Net earnings including non-controlling interests 536.0 442.6 21.1
Net loss attributable to non-controlling interests 2.8 13.0 (78.5)
Net earnings attributable to shareholders of the Corporation 538.8 455.6 18.3
Per Share Data:
Basic net earnings per share (dollars per share) 0.96 0.81 18.5
Diluted net earnings per share (dollars per share) 0.95 0.81 17.3
Adjusted diluted net earnings per share (dollars per share)(13) 0.97 0.87 11.5

 

Depreciation, amortization and impairment ("depreciation")

For the first quarter of fiscal 2020, our depreciation expense increased by $5.6 million. Excluding CAPL's results as well as the $55.0 million impairment charge on CAPL's goodwill recognized during the first quarter of fiscal 2019, the depreciation expense increased by $71.0 million, mainly driven by the additional depreciation expense arising from right-of-use assets due to the adoption of IFRS 16, which had an impact of approximately $81.0 million, to the replacement of equipment, partly offset by the divestiture of stores and our marine fuel business. 

Net financial expenses

Net financial expenses for the first quarter of fiscal 2020 were $87.0 million, an increase of $9.3 million compared with the first quarter of fiscal 2019. Excluding the items shown in the table below, net financial expenses decreased by $14.5 million, mainly attributable to our lower average long-term debt following the significant repayments made.

 

12-week period ended July 21, 2019 52-week period ended April 28, 2019 (1)  Depreciation and interest expenses are based on our assessment of Fiscal 2020 impact. (in millions of US dollars) Balance,beginning of period Adoption of IFRS 16 Adjusted balance,beginning of period 12-week periods ended 12-week periods ended 12-week periods ended (in millions of US dollars, unless otherwise stated) July 21, 2019 April 28, 2019 Variation $ Quarter 2nd 3rd 4th 1st Weighted average (US cents per gallon) 12-week period ended July 21, 2019 12-week periods ended 12-week periods ended
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total 12-week period ended July 22, 2018       (in millions of US dollars)     Pre – IFRS16 As reported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16 impacts – attributable to shareholders of the Corporation July 21, 2019 July 22, 2018 (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % Balance Sheet Data(5): (1) Includes revenues derived from franchise fees, royalties, suppliers' rebates on some purchases made by franchisees and licensees, as well as from wholesale of merchandise. 52‑week period ended July 21, 2019 Quarter 2nd 3rd 4th 1st Weighted average (1) Please note that this information has been restated to reflect the cost of electronic payment expenses per corporate-store road transportation fuel gallons instead of per total road transportation fuel gallons. Total variance, as reported (5.5)% (in millions of US dollars) July 21, 2019 July 22, 2018 (in millions of US dollars) July 21, 2019 July 22, 2018
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575       (in millions of US dollars)     Pre – IFRS 16 Asreported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16impacts –attributable to shareholders of the Corporation Revenues 59,117.6 - - 40.0 40.0 59,157.6 20.0 Assets Average for period Statement of Operations Data: Other Operating Data – excluding CAPL: Total assets (including $1.3 billion and $1.1 billion for CAPL as at July 21, 2019 and as at April 28, 2019, respectively) 25,431.6 25,033.0 398.6 (2) Includes revenues from the rental of assets and from the sale of aviation fuel, energy for stationary engines and marine fuel (until November 30, 2018). United States (US dollars per gallon) – excluding CAPL 2.72 2.42 2.51 2.66 2.57 52‑week period ended July 21, 2019 Adjusted for: Net earnings including non-controlling interests, as reported 536.0 442.6 Net financial expenses, as reported 87.0 77.7
Acquisitions 8 - - - 8 Revenues 14,786.5 - - 9.0 9.0 14,795.5 3.0 Cost of sales 49,922.7 - - - - 49,922.7 - Current assets Canadian dollar 0.7517 0.7673 Merchandise and service revenues(1): Merchandise and service gross margin(1): Interest-bearing debt (including $686.1 million and $696.0 million for CAPL as at July 21, 2019 and as at April 28, 2019, respectively)(6)   9,410.4   9,575.3   (164.9) (3) Does not include services and other revenues (as described in footnotes 1 and 2 above). Growth in Canada and in Europe is calculated based on local currencies. Europe (US cents per liter) 80.56 75.28 74.59 77.35 76.86 Before deduction of expenses related to electronic payment modes 21.88 29.42 18.51 26.86 24.50 Decrease in rent expense from transition to IFRS 16 6.2% Add: Adjusted for:
Openings / constructions / additions 29 - 4 24 57 Cost of sales 12,569.4 - - - - 12,569.4 - Gross profit 9,194.9 - - 40.0 40.0 9,234.9 20.0 Prepaid expenses 83.7 (26.4) 57.3 Norwegian krone 0.1155 0.1234 United States 2,657.8 2,609.1 1.9 Consolidated 34.6% 34.6% - Equity attributable to shareholders of the Corporation 9,409.8 8,913.7 496.1 (4) For company-operated stores only. Canada (CA cents per liter) 115.22 97.59 103.45 111.16 106.23 Expenses related to electronic payment modes(1) 4.55 4.31 4.40 4.70 4.50 Decrease from the net impact of foreign exchange translation 1.4% Income taxes 135.3 88.2 CAPL's financial expenses (11.3) (7.0)
Closures / disposals / withdrawals (35) (64) (20) (23) (142) Gross profit 2,217.1 - - 9.0 9.0 2,226.1 3.0 Property and equipment 11,129.9 (306.5) 10,823.4 Swedish krone 0.1055 0.1138 Europe 353.1 368.7 (4.2) United States 34.0% 33.5% 0.5 Indebtedness Ratios(7): (5) The balance sheet data as at April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16. 52‑week period ended July 22, 2018 After deduction of expenses related to electronic payment modes 17.33 25.11 14.11 22.16 20.00 Decrease in CAPL's expenses 0.2% Net financial expenses 87.0 77.7 Net foreign exchange loss (6.5) (1.0)
Store conversion (3) 6 (3) - - Operating, selling, administrativeand general expenses 5,646.1   (390.0)   -   28.0   (362.0)   5,284.1 (361.0) Right-of-use assets - 2,835.0 2,835.0 Danish krone 0.1505 0.1575 Canada 575.6 544.4 5.7 Europe 41.5% 42.4% (0.9) Net interest-bearing debt/total capitalization(6)(8) 0.45 : 1 0.48 : 1 (6) This measure is presented including the following balance sheet accounts: Current portion of long-term debt, Long-term debt, Current portion of lease liabilities, and Lease liabilities. United States (US dollars per gallon) – excluding CAPL 2.47 2.30 2.51 2.76 2.50 52-week period ended July 22, 2018 Disposal of our marine fuel business 0.1% Depreciation, amortization and impairment 307.1 301.5 Estimated pro forma impact from transition to IFRS 16 - 14.0
Number of sites, end of period 9,793 456 1,033 1,216 12,498 Operating, selling, administrative and general expenses   1,312.5   (88.0)   -   6.0   (82.0)   1,230.5 (82.0) Restructuring costs 10.5 - - - - 10.5 - Intangible assets 944.4 (104.5) 839.9 Zloty 0.2629 0.2726 CAPL 19.8 26.3 (24.7) Canada 32.9% 34.5% (1.6) Leverage ratio(9) 1.94 : 1 2.09 : 1 (7) These measures are presented as if our investment in CAPL was reported using the equity method as we believe it allows a more relevant presentation of the underlying performance of the Corporation. Europe (US cents per liter) 68.23 71.19 78.32 75.07 73.01 Before deduction of expenses related to electronic payment modes 24.70 15.66 17.29 22.70 19.42 Increase from higher electronic payment fees, excluding acquisitions (0.1)% EBITDA 1,065.4 910.0 Net financial expenses excluding items above 69.2 83.7
CAPL network 1,320 Restructuring costs 1.5 - - - - 1.5 - Gain on disposal of property andequipment and other assets (21.3   -   -   -   -   (21.3) - Other assets 306.6 27.7 334.3 Euro 1.2703 1.1734 Elimination of intercompany transactions with CAPL (0.5) (0.7) (28.6) Growth of same-store merchandise revenues(3): Adjusted leverage ratio(10) 2.03 : 1 2.18 : 1 (8) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by the addition of shareholders' equity and interest-bearing debt, net of cash and cash equivalents and temporary investments. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's long-term debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 0.39 : 1. We believe this measure is useful to investors and analysts. Canada (CA cents per liter) 101.46 108.11 110.39 117.95 109.37 Expenses related to electronic payment modes(1) 4.31 4.06 3.86 4.67 4.20 Remaining variance 2.3% Adjusted for:
Circle K branded sites under licensing agreements 2,248 Loss on disposal of property and equipment and other assets   0.2   -   -   -   -   0.2 -   Depreciation, amortization andimpairment 1,070.7 (18.0) 388.0 - 370.0 1,440.7 356.0 Total assets 22,607.7 2,425.3 25,033.0 Ruble 0.0156 0.0160 Total merchandise and service revenues 3,605.8 3,547.8 1.6 United States(4) 2.5% 4.2% (1.7) Returns(7): (9) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt, net of cash and cash equivalents and temporary investments divided by EBITDA (Earnings before Interest, Tax, Depreciation, Amortization and Impairment) adjusted for specific items. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's long-term debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 1.61 : 1. We believe this measure is useful to investors and analysts. After deduction of expenses related to electronic payment modes 20.39 11.60 13.43 18.03 15.22 EBITDA attributable to non-controlling interests (24.8) (14.5)
Total network 16,066 Depreciation, amortization and impairment 301.5 (4.0) 90.0 - 86.0 387.5 81.0 Total operating expenses 6,706.0 (408.0) 388.0 28.0 8.0 6,714.0 (5.0) Road transportation fuel revenues: Europe 0.7% 7.3% (6.6) Return on equity(11) 22.0% 21.9% (10) This measure is presented for information purposes only and represents a measure of financial condition used especially in financial circles. It represents the following calculation: interest-bearing debt plus the product of eight times rent expense, net of cash and cash equivalents and temporary investments divided by EBITDAR (Earnings before Interest, Tax, Depreciation, Amortization, Impairment and Rent expense) adjusted for specific items. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. For the purpose of this calculation, CAPL's interest bearing debt is excluded as it is a non-recourse debt to the Corporation, as referenced in footnote 7. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 2.29 : 1. We believe this measure is useful to investors and analysts. Acquisition costs 0.2 0.5
Number of automated fuel stations included in theperiod‑end figures 981 - 12 - 993 Total operating expenses 1,615.7 (92.0) 90.0 6.0 4.0 1,619.7 (1.0) Operating income 2,488.9 408.0 (388.0) 12.0 32.0 2,520.9 25.0 Liabilities United States 6,801.5 7,159.5 (5.0) Canada(4) 0.3% 6.6% (6.3) Return on capital employed(12) 13.2% 12.6% (11) This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: net earnings divided by average equity for the corresponding period. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 22.3%. We believe this measure is useful to investors and analysts. Restructuring costs attributable to shareholders of the Corporation - 1.5
Operating income 601.4 92.0 (90.0) 3.0 5.0 606.4 4.0 Current liabilities Europe 1,919.8 1,952.5 (1.7) Road transportation fuel gross margin: (12) This measure is presented for information purposes only and represents a measure of performance used especially in financial circles. It represents the following calculation: earnings before income taxes and interests divided by average capital employed for the corresponding period. Capital employed represents total assets less short-term liabilities not bearing interests. It does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other public corporations. This performance measure, for the 52-week period ended April 28, 2019, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously disclosed measure was 14.1%. We believe this measure is useful to investors and analysts. Adjusted EBITDA, as previously reported 1,040.8 897.5
Share of earnings of joint ventures and associated companies     23.4     -     -     -     -     23.4 - Accounts payable and accrued liabilities 3,917.1 (24.6) 3,892.5 Canada 1,201.4 1,291.8 (7.0) United States (cents per gallon)(4) 26.86 22.70 18.3 (13) This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16 and the previously reported adjusted net earnings per share was $0.88. Estimated pro forma impact from transition to IFRS 16 attributable to shareholders of the Corporation - 85.0
Share of earnings of joint ventures and associated companies     7.1     -     -     -     -     7.1 - Current portion of long-term debt 1,310.7 (40.5) 1,270.2 CAPL 567.4 633.7 (10.5) Europe (cents per liter) 8.44 9.21 (8.4) Adjusted EBITDA 1,040.8 982.5
EBITDA 3,583.0 390.0 - 12.0 402.0 3,984.0 381.0 Current portion of lease liabilities - 382.9 382.9 Elimination of intercompany transactions with CAPL (121.4) (140.3) (13.5) Canada (CA cents per liter)(4) 7.40 8.91 (16.9)
EBITDA 910.0 88.0 - 3.0 91.0 1,001.0 85.0 Long-term debt 5,640.7 (287.8) 5,352.9 Total road transportation fuel revenues 10,368.7 10,897.2 (4.8) Total volume of road transportation fuel sold:
Financial expenses 338.7 (20.0) 90.0 - 70.0 408.7 62.0 Lease liabilities - 2,569.3 2,569.3 Other revenues(2): United States (millions of gallons) 2,590.6 2,574.6 0.6
Financial expenses 79.4 (5.0) 21.0 - 16.0 95.4 14.0 Financial revenues (13.3) - - - - (13.3) - Long-term provisions 590.1 (3.0) 587.1 United States 6.9 5.4 27.8 Europe (millions of liters) 2,633.6 2,676.4 (1.6)
Financial revenues (2.7) - - - - (2.7) - Foreign exchange gain (5.3) - - - - (5.3) - Deferred credits and other liabilities 349.0 (158.3) 190.7 Europe 155.1 319.0 (51.4) Canada (millions of liters) 1,472.6 1,469.2 0.2
Foreign exchange loss 1.0 - - - - 1.0 - Net financial expenses 320.1 (20.0) 90.0 - 70.0 390.1 62.0 Deferred income taxes 1,037.1 (3.2) 1,033.9 Canada 4.8 6.2 (22.6) Growth of (decrease in) same-store road transportation fuel volume(4):
Net financial expenses 77.7 (5.0) 21.0 - 16.0 93.7 14.0 Earnings before income taxes 2,192.2 428.0 (478.0) 12.0 (38.0) 2,154.2 (37.0) Total liabilities 13,426.6 2,434.8 15,861.4 CAPL 25.8 15.2 69.7 United States 0.6% 0.6% -
Earnings before income taxes 530.8 97.0 (111.0) 3.0 (11.0) 519.8 (10.0) Income taxes 370.9 108.0 (120.0) 3.0 (9.0) 361.9 (9.0) Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7) Europe (1.6%) (0.1%) (1.5)
Income taxes 88.2 25.0 (28.0) 1.0 (2.0) 86.2 (2.0) Net earnings including non-controlling interests 1,821.3 320.0 (358.0) 9.0 (29.0) 1,792.3 (28.0) Equity Total other revenues 188.5 341.5 (44.8) Canada 0.4% (3.3%) 3.7
Net earnings including non-controlling interests 442.6 72.0 (83.0) 2.0 (9.0) 433.6 (8.0) Net loss attributable to non-controlling interests 12.6 (3.0) 20.0 (16.0) 1.0 13.6 - Retained earnings 9,053.5 (9.5) 9,044.0 Total revenues 14,163.0 14,786.5 (4.2)
Net loss attributable to non-controlling interests 13.0 - 5.0 (4.0) 1.0 14.0 - Net earnings attributable toshareholders of the Corporation 1,833.9   317.0   (338.0)   (7.0)   (28.0)   1,805.9 (28.0) Total equity 9,181.1 (9.5) 9,171.6 Merchandise and service gross profit(1):
Net earnings attributable to shareholders of the Corporation 455.6   72.0   (78.0)   (2.0)   (8.0)   447.6 (8.0) United States 904.9 874.8 3.4
Europe 146.5 156.3 (6.3)
Canada 189.5 187.9 0.9
CAPL 4.6 6.4 (28.1)
Elimination of intercompany transactions with CAPL (0.5) (0.6) (16.7)
Total merchandise and service gross profit 1,245.0 1,224.8 1.6
Road transportation fuel gross profit:
United States 672.5 560.0 20.1
Europe 222.2 246.5 (9.9)
Canada 81.5 100.0 (18.5)
CAPL 23.1 26.6 (13.2)
Total road transportation fuel gross profit 999.3 933.1 7.1
Other revenues gross profit(2):
United States 6.9 5.3 30.2
Europe 31.3 36.8 (14.9)
Canada 4.8 6.2 (22.6)
CAPL 25.8 15.2 69.7
Elimination of intercompany transactions with CAPL (4.1) (4.3) (4.7)
Total other revenues gross profit 64.7 59.2 9.3
Total gross profit 2,309.0 2,217.1 4.1
Operating, selling, administrative and general expenses
Excluding CAPL 1,224.3 1,294.7 (5.4)
CAPL 20.2 22.6 (10.6)
Elimination of intercompany transactions with CAPL (4.4) (4.8) (8.3)
Total Operating, selling, administrative and general expenses 1,240.1 1,312.5 (5.5
Restructuring costs - 1.5 (100.0)
Loss on disposal of property and equipment and other assets 10.1 0.2 4,950.0
Depreciation, amortization and impairment
Excluding CAPL 284.2 213.2 33.3
CAPL 22.9 88.3 (74.1)
Total depreciation, amortization and impairment 307.1 301.5 1.9
Operating income
Excluding CAPL 743.0 671.3 10.7
CAPL 8.9 (69.8 (112.8)
Elimination of intercompany transactions with CAPL (0.2) (0.1) 100.0
Total operating income 751.7 601.4 25.0
Net financial expenses 87.0 77.7 0.12
Net earnings including non-controlling interests 536.0 442.6 21.1
Net loss attributable to non-controlling interests 2.8 13.0 (78.5)
Net earnings attributable to shareholders of the Corporation 538.8 455.6 18.3
Per Share Data:
Basic net earnings per share (dollars per share) 0.96 0.81 18.5
Diluted net earnings per share (dollars per share) 0.95 0.81 17.3
Adjusted diluted net earnings per share (dollars per share)(13) 0.97 0.87 11.5

 

Income taxes

The income tax rate for the first quarter of fiscal 2020 was 20.2% compared with 16.6% for the corresponding period of fiscal 2019. Excluding the income tax expense of $4.5 million from the re-evaluation of the deferred tax assets and liabilities following the asset exchange transaction with CAPL, the income tax rate would have been 19.5%. The increase of the income tax rate of the first quarter of fiscal 2020 stems from the impact of a different mix in our earnings across the various jurisdictions.

Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")

Net earnings for the first quarter of fiscal 2020 were $538.8 million, compared with $455.6 million for the first quarter of the previous fiscal year, an increase of $83.2 million or 18.3%. Diluted net earnings per share stood at $0.95, compared with $0.81 for the corresponding quarter of the previous year. The translation of revenues and expenses from our Canadian and European operations into United States dollars had a net negative impact of approximately $10.0 million on net earnings of the first quarter of fiscal 2020.

Excluding the items shown in the table below from net earnings of the first quarter of fiscal 2020 and of fiscal 2019, adjusted net earnings for the first quarter of fiscal 2020 would have been approximately $548.0 million, compared with $490.0 million for the first quarter of fiscal 2019, an increase of $58.0 million or 11.8%. Adjusted diluted net earnings per share would have been approximately $0.97 for the first quarter of fiscal 2020 compared with $0.87 for the corresponding period of fiscal 2019, an increase of 11.5%.

The table below reconciles reported net earnings to adjusted net earnings:

 

12-week period ended July 21, 2019 52-week period ended April 28, 2019 (1)  Depreciation and interest expenses are based on our assessment of Fiscal 2020 impact. (in millions of US dollars) Balance,beginning of period Adoption of IFRS 16 Adjusted balance,beginning of period 12-week periods ended 12-week periods ended 12-week periods ended (in millions of US dollars, unless otherwise stated) July 21, 2019 April 28, 2019 Variation $ Quarter 2nd 3rd 4th 1st Weighted average (US cents per gallon) 12-week period ended July 21, 2019 12-week periods ended 12-week periods ended 12-week periods ended 12-week periods ended
1 Please refer to the section "Net earnings attributable to shareholders of the Corporation ("net earnings") and adjusted net earnings attributable to shareholders of the Corporation ("adjusted net earnings")" of this press release for additional information on this performance measure not defined by IFRS. This performance measure, for the 12-week period ended July 22, 2018, has been adjusted for the estimated pro forma impact of IFRS 16. Type of site Company-operated CODO DODO Franchised and other affiliated Total 12-week period ended July 22, 2018       (in millions of US dollars)     Pre – IFRS16 As reported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated proforma IFRS 16 impacts     Pro forma IFRS 16 Total estimated proforma IFRS 16 impacts – attributable to shareholders of the Corporation July 21, 2019 July 22, 2018 (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % (in millions of US dollars, unless otherwise stated) July 21,  2019 July 22,  2018 Variation % Balance Sheet Data(5): (1) Includes revenues derived from franchise fees, royalties, suppliers' rebates on some purchases made by franchisees and licensees, as well as from wholesale of merchandise. 52‑week period ended July 21, 2019 Quarter 2nd 3rd 4th 1st Weighted average (1) Please note that this information has been restated to reflect the cost of electronic payment expenses per corporate-store road transportation fuel gallons instead of per total road transportation fuel gallons. Total variance, as reported (5.5)% (in millions of US dollars) July 21, 2019 July 22, 2018 (in millions of US dollars) July 21, 2019 July 22, 2018 (in millions of US dollars) July 21, 2019 July 22, 2018
2 Please refer to the section "Summary Analysis of Consolidated Results for the First Quarter of Fiscal 2020" of this press release for additional information on these performance measures not defined by IFRS. These performance measures, for the 52-week period ended April 28, 2019, have been adjusted for the estimated pro forma impact of IFRS 16. Number of sites, beginning of period 9,794 514 1,052 1,215 12,575       (in millions of US dollars)     Pre – IFRS 16 Asreported   Excluding: Rent under IAS 17   Including:Depreciation and interests(1)       Other Totalestimated