Indigo Reports Fiscal 2021 Second Quarter Financial Results - Year-over-year revenue growth driven by exceptional e-commerce results, retail's continued recovery and success of paid membership program

TORONTO, Nov. 3, 2020 /CNW/ - Indigo (TSX: IDG), Canada's largest book and lifestyle retailer announces its second quarter results.   

Revenue for the second quarter ended September 26, 2020 was $205.3 million compared to revenue of $203.4 million in the same period last year, an increase of $1.9 million. Buoyed by continued interest in the core categories of reading, wellness, at-home learning and entertainment, the Company's online channel more than doubled, delivering growth of 113.6%. This growth was complemented by the retail channel's ongoing recovery – albeit still below normal levels – and the success of the Company's paid membership program.

Commenting on the results, CEO Heather Reisman said: "Our team has put out extraordinary effort over the last eight months and meaningfully pushed our business forward notwithstanding the challenges of operating in a COVID environment.  This quarter, we successfully launched our proprietary home brand Oui and have seen continued success in our core categories of wellness, reading and kids entertainment. We also launched an industry leading click-and-collect service and on-boarded Instacart.   These advances allow us to provide our customers with 'have it your way' access channels.  We are energized by these results, and by customers' continued affinity for our brand."

During the quarter, the Company remained focused on productivity efforts. These actions resulted in an adjusted EBITDA (see "Non-IFRS Measures" below) improvement of $6.5 million dollars compared to the second quarter of last year. These savings were realized against pressures from pandemic-related costs related to staffing for social distancing, ongoing requirements for personal protective equipment, and enhanced safety and security measures.

Indigo reported a loss before income taxes of $17.5 million for the second quarter ended September 26, 2020, compared to a loss before income taxes of $27.9 million last year, an improvement of $10.4 million. This was achieved through improved operating performance and lower depreciation in the year.

With no outstanding debt and a cash balance of $137.5 million, the Company is well positioned to manage through these very uncertain times.

Analyst/Investor Call 
Indigo will host a conference call for analysts and investors to review these results at 9:00 a.m. (Eastern Time) tomorrow, November 4th, 2020. The call can be accessed by dialing 416-764-8688 from within the Toronto area, or 1-888-390-0546 outside of Toronto. The eight-digit participant code is 74471107.          

A playback of the call will also be available by telephone until 11:59 p.m. (ET) on November 11, 2020. The call playback can be accessed after 12:00 p.m. (ET) on November 4, 2020, by dialing 416-764-8677 from within the Toronto area, or 1-888-390-0541 outside of Toronto. The six-digit replay passcode number is 471107#. The conference call transcript will be archived in the Investor Relations section of the Indigo website, www.indigo.ca. 

Forward-Looking Statements 
Statements contained in this news release that are not historical facts are "forward-looking information" within the meaning of applicable Canadian securities legislation. To the extent any forward-looking information constitutes "financial outlooks" within the meaning of applicable Canadian securities laws, such information is being provided as preliminary financial and operational results. Financial outlooks, as with forward-looking information generally, are, without limitation, based on the assumptions and subject to various risks and uncertainties that could cause actual results to differ materially from those expressed in or implied in this news release. Among the key factors that could cause such differences are: general economic, market or business conditions; the future impacts and government response to the COVID-19 pandemic, including any impact to online and/or retail operations of the Company; competitive actions by other companies; changes in laws or regulations; and other factors, many of which are beyond the control of the Company, as set out in the Company's annual information form dated June 23, 2020 and available on the Company's issuer profile on SEDAR at www.sedar.com.

Undue reliance should not be placed on such forward-looking information and no assurance can be given that such events will occur in the disclosed time frames or at all. Any forward-looking information included in this news release is made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities laws.

Non-IFRS Financial Measures 
The Company prepares its consolidated financial statements in accordance with International Financial Reporting Standards ("IFRS"). In order to provide additional insight into the business, the Company has also provided non-IFRS data, specifically adjusted EBITDA, in this press release. These measures do not have standardized meanings prescribed by IFRS and are therefore specific to Indigo and may not be comparable to similar measures presented by other companies. 

For additional context see "Results of Operations" and "Non-IFRS Financial Measures" in the Management's Discussion and Analysis (which can be found at www.indigo.ca/investor-relations or www.sedar.com).

About Indigo Books & Music Inc. 
Indigo is a publicly traded Canadian company listed on the Toronto Stock Exchange (IDG). Indigo is the world's first Cultural Department Store – a physical and digital meeting place inspired by and filled with books, music, art, ideas, and beautifully designed lifestyle products. Indigo believes in real books, in living life fully and generously, in being kind to each other and that stories – big and little – connect us.

Indigo founded the Indigo Love of Reading Foundation in 2004 to address the underfunding of public elementary school libraries. Every year the Foundation provides grants to high-needs elementary schools so they can transform their libraries with the purchase of new books and educational resources. To date, the Foundation has committed over $32 million to more than 3,000 elementary schools, benefitting more than 1,000,000 students. Most recently in April 2020, in the wake of the COVID-19 pandemic and unprecedented nation-wide school closures, the Foundation committed $1.0 million to provide books to families in need. To learn more about Indigo, please visit the "Our Company" section at indigo.ca.

SOURCE Indigo Books & Music Inc.