Rona Inc posts loss higher revenue ahead of takeover by Lowes
October 8, 2019
BOUCHERVILLE, Que. — Rona Inc. says it lost money in this year’s first quarter but overall revenue increased despite weak sales in the Prairies.The Quebec-based home improvement retailer is slated to become a subsidiary of Lowe’s following a friendly $3.2-billion takeover deal announced in February.Rona (TSX:RON) posted a $16.5 million net loss or 15 cents per share for the quarter ended March 27.Rona shareholders overwhelmingly approve $3.2 billion Lowe’s takeoverRona Inc tops estimates in potentially last report as Canadian-controlled retailerThe quarter’s loss included $3.5 million or three cents per share of restructuring costs and $4.1 million or four cents per share of acquisition costs.Revenue was $819.2 million, up from $778.8 million a year earlier. Same-store sales grew 3.1 per cent with strong performance in Ontario, British Columbia and the Reno-Depot banner in Quebec. The company saw a decline in Prairie same-store sales.After excluding restructuring and other items, Rona’s adjusted loss was $9 million or eight cents per share.By comparison, Rona’s net loss in the first quarter of 2015 was $11.7 million or 11 cents per share including minimal restructuring costs. Its adjusted loss was $11.2 million or 10 cents per share.