The North West Company Inc. Releases Audited Consolidated Financial Statements and Announces Changes to Board of Directors
Winnipeg, April 11, 2018 (TSX:NWC): The North West Company Inc. (the “Company” or “North West”) today released its Annual Audited Consolidated Financial Statements for the year ended January 31, 2018, its Annual Management’s Discussion and Analysis, and Annual Information Form for the same period. These documents can be found on the Company’s profile on the SEDAR website at www.sedar.com and on the Company’s website at www.northwest.ca.
U.S. Tax Reform
The Company previously reported its fourth quarter unaudited interim period condensed consolidated financial statements on March 15, 2018. On April 2, 2018, the U.S. Department of the Treasury and the Internal Revenue Service issued notice 2018-26 which provides additional guidance for computing the Deemed Repatriation Transition Tax (“transition tax”) under H.R. 1, the Tax Cuts and Jobs Act (“U.S. Tax Reform”). As a result of this guidance, the Company recorded an additional estimated transition tax of $1.9 million on the accumulated undistributed earnings and profits of foreign subsidiaries in its annual audited consolidated financial statements for the year ended January 31, 2018. This adjustment increased income tax expense and decreased net earnings by $1.9 million from the amounts previously reported in the fourth quarter unaudited interim consolidated financial statements for both the fourth quarter and the year ended January 31, 2018. Further information on the impact of U.S. Tax Reform is provided in the consolidated income tax expense and quarterly financial information sections of the Annual Management’s Discussion and Analysis and in Note 9 to the Annual Audited Consolidated Financial Statements for the year ended January 31, 2018.
Changes to North West Directorship
North West announces the resignation of Gary Merasty as a member of its Board of Directors, effective April 11, 2018, so that Gary can join the Company, effective May 1, 2018, in a senior executive role, accountable for Heath Products & Services, Store & Community Development and new ventures with an emphasis on indigenous business partnerships.
Also effective April 11, 2018, North West announces the appointment of Deepak Chopra to its Board of Directors. Mr. Chopra is the former President and CEO of Canada Post.
- Sanford Riley, Chairman of the Board, said “Gary Merasty has been a valued member of our Board for over seven years and we are delighted that he will now play a key role on the Company’s management team where we know he will make a great contribution focused on our potential growth in partnership with the indigenous communities that we serve. At the same time, we are very pleased that Deepak Chopra has agreed to join our Board. Deepak has had a distinguished career as a leader in Canadian and international business. Deepak brings c-level insights and skills which will help inform our strategies broadly and specifically related to logistics, technology and e-commerce. We welcome him to The North West Company.”
The North West Company Inc., through its subsidiaries, is a leading retailer of food and everyday products and services to rural communities and urban neighbourhoods in Canada, Alaska, the South Pacific and the Caribbean. North West operates 237 stores under the trading names Northern, NorthMart, Giant Tiger, Alaska Commercial Company, Cost-U-Less and RiteWay Food Markets and has annualized sales of approximately CDN$2.0 billion.
The common shares of North West trade on the Toronto Stock Exchange under the symbol “NWC”.
For more information contact:
Edward Kennedy, President and Chief Executive Officer, The North West Company Inc.
Phone 204-934-1482; fax 204-934-1317; email firstname.lastname@example.org
John King, Executive Vice President and Chief Financial Officer, The North West Company Inc.
Phone 204-934-1397; fax 204-934-1317; email email@example.com
Amanda Sutton, Vice President, Legal and Corporate Secretary, The North West Company Inc.
Phone 204-934-1756; fax 204-934-1317; email firstname.lastname@example.org
or visit on-line at www.northwest.ca