Five Year Summary(1)

           
Year(2)
($ millions except where otherwise indicated)
2006  2005  2004  2003  2002 
 

Operating Results

         
Sales(4) 28,640  27,627  26,030  25,066  22,953 
Sales excluding the impact of VIEs(3)(4) 28,257  27,212  26,030  25,066  22,953 
Adjusted EBITDA(3) 1,892  2,132  2,125  1,881  1,671 
Operating income 289  1,401  1,652  1,467  1,303 
Adjusted operating income(3) 1,326  1,600  1,652  1,488  1,317 
Interest expense 259  252  239  196  161 
Net (loss) earnings (219) 746  968  845  728 
 

Financial Position

         
Working capital 675  539  290  356  320 
Fixed assets 8,055  7,785  7,113  6,390  5,557 
Goodwill 794  1,587  1,621  1,607  1,599 
Total assets 13,486  13,761  12,949  12,113  11,047 
Net debt(3) 3,891  3,901  3,828  3,707  2,932 
Shareholders' equity 5,441  5,886  5,414  4,690  4,082 
 

Cash Flow

         
Cash flows from operating activities 1,180  1,489  1,443  1,032  998 
Free cash flow(3) 70  103  (24) (437) (208)
Capital investment 937  1,156  1,258  1,271  1,079 
 

Per Common Share

($)
         
Basic net (loss) earnings (.80) 2.72  3.53  3.07  2.64 
Adjusted basic net earnings(3) 2.72  3.35  3.48  3.10  2.68 
Dividend rate at year end .84  .84  .76  .60  .48 
Cash flows from operating activities 4.31  5.43  5.26  3.75  3.61 
Capital investment 3.42  4.22  4.59  4.62  3.91 
Book value 19.85  21.48  19.74  17.07  14.79 
Market price at year end 48.79  56.37  72.02  67.85  54.00 
 

Financial Ratios

         
Adjusted EBITDA margin (%)(3) 6.7  7.8  8.2  7.5  7.3 
Operating margin (%) 1.0  5.1  6.3  5.9  5.7 
Adjusted operating margin (%)(3) 4.7  5.9  6.3  5.9  5.7 
Return on average total assets (%)(3) 2.3  11.2  14.2  13.9  13.8 
Return on average shareholders' equity (%) (3.9) 13.2  19.2  19.3  19.0 
Interest coverage 1.0  5.1  6.4  6.4  6.8 
Net debt(3) to equity .72   .66  .71  .79  .72 
Cash flows from operating activities to net debt(3) .30  .38  .38  .28  .34 
Price/net earnings ratio at year end (61.0) 20.7  20.4  22.1  20.5 
Market/book ratio at year end 2.5  2.6  3.6  4.0  3.7 
 
(1) For financial definitions and ratios refer to the Glossary of Terms.
(2) 2003 was a 53 week year.
(3) See Non-GAAP Financial Measures (51 KB PDF).
(4) During 2006, the Company implemented Emerging Issues Committee Abstract 156, "Accounting by a Vendor for Consideration Given to a Customer (Including a Reseller of the Vendor's Products)" on a retroactive basis. Accordingly certain sales incentives paid to independent franchisees, associates and independent accounts for prior years have been reclassified between sales and cost of sales, selling and administrative expenses. For a further discussion, see the Accounting Standards Implemented in 2006 (45 KB PDF) section in the Management's Discussion and Analysis of this Financial Report.
(5) Certain prior years' information was reclassified to conform with current year's presentation.
Graph: Shareholders' Equity and Net Debt ($ millions) Graph:  Cash Flows from Operating Activities and Capital Investment ($ millions)

Graph: Basic Net (Loss) Earnings and Adjusted Basic Net Earnings per Common Share ($) Graph: Common Share Market Price Range ($)
Loblaw Companies Limited Annual Report 2006