Empire Company Limited reported unaudited consolidated earnings results for the first quarter ended August 5, 2017. For the quarter, the company reported sales of $6,273.2 million against $6,186.6 million a year ago. EBITDA was $238.8 million against $238.3 million a year ago. Adjusted EBITDA was $278.8 million against $243.1 million a year ago. Operating income was $125.2 million against $126.6 million a year ago. Net earnings were $54.0 million against $65.4 million a year ago. Adjusted net earnings were $87.5 million against $73.6 million a year ago. Diluted earnings per share were $0.20 against $0.24 a year ago. Adjusted EPS fully diluted were $0.32 against $0.27 a year ago. Book value per common share was $13.57 against $13.41 a year ago. Cash flows from operating activities were $175.5 million against $239.3 million a year ago. Free cash flow was $119.7 million against $455.6 million a year ago. EBITDA increased in the first quarter of fiscal 2018 mainly as a result of the previously mentioned factors affecting sales, partially offset by increases in selling and administrative expenses largely as a result of $40.0 million in one-time Project Sunrise costs. For the quarter, taxation expense was affected by an adjustment to deferred taxes related to the flow-through impacts on the company as the Crombie REIT completed a tax reorganization. Excluding this adjustment, the effective tax rate for the quarter would have been 26.2%, and earnings per share would have been $0.02 higher. The decrease in free cash flow for the 13 weeks ended August 5, 2017 compared to the 13 weeks ended August 6, 2016, was mainly due to the sale leaseback agreement entered into with Crombie REIT in the prior year, combined with decreased cash flows from operating activities, offset by a decrease in capital purchases.

The effective tax rate for fiscal 2018 is estimated to be 26% to 28%.