BOUCHERVILLE, Que. — Store closures and the renovation of 11 Réno-Dépôt contributed to a drop in revenues for RONA, with consolidated revenues of $764.3 million down 8.2% from $832.9 million for the first quarter of 2013. The decrease primarily reflects the closure of underperforming stores, harsher weather conditions that had a negative impact on stores that sell building materials in Quebec and Ontario, and more difficult conditions in the industry as a whole stemming mainly from a decline in housing starts across the country. Sales were also affected by major renovations at Réno-Dépôt stores as that banner was re-positioned during 2013.
These factors contributed to a 4% decrease in same-store sales in the first quarter.
The cost-savings of $23.7 million achieved by the RONA recovery plan, which lowered selling, general and administrative expenses, and the positive impact of closing the underperforming stores, helped to narrow RONA’s losses and boost adjusted EBITDA, which totalled $10.0 million, or 1.3% of revenues, compared to $1.6 million, or 0.2% of revenues in the first quarter of 2013.