NWC The North West Company Inc

The North West Company Inc. (TSX:NWC) (the "Company" or "North West") today
reported its unaudited financial results for the fourth quarter ended January
31, 2014. It also announced that the Board of Directors have declared a dividend
of $0.29 per share, an increase of $0.01 or 3.6% per share, to shareholders of
record on March 31, 2014, to be paid on April 15, 2014.


Financial Highlights(3)

Sales increased 4.2% to $402.9 million compared to $386.6 million in the fourth
quarter last year as new store sales and same store sales growth in both the
Canadian and International Operations more than offset the impact of store
closures in the Canadian Operations in the fourth quarter of 2012. Excluding the
foreign exchange impact, sales increased 1.7% and were up 1.9%(1) on a same
store basis. Food sales(1) increased 1.8% and were up 1.3% on a same store basis
and general merchandise sales(1) increased 1.5% and were up 4.1% on a same store
basis.


Earnings from Operations(2) increased 8.5% to $24.6 million compared to $22.7
million in the fourth quarter last year. Gross profit dollars increased 4.7% due
to sales growth and a 15 basis point increase in gross profit rate on a
consolidated basis. The gross profit rate improvement was largely due to lower
markdowns in general merchandise resulting from better balanced seasonal
assortments. Selling, operating and administrative expenses increased 3.8%
compared to last year but were down 9 basis points as a percentage to sales. The
increase in expenses is primarily due to expenses related to new stores in the
International Operations and the impact of foreign exchange on the translation
of U.S. denominated expenses. The impact of new store expenses was partially
offset by lower employee medical insurance expenses in the International
Operations and a decrease in debt loss expense in the Canadian Operations.
Excluding the foreign exchange impact, earnings from operations increased 7.2%
compared to last year.


Trading profit(2) or earnings before interest, income taxes, depreciation and
amortization (EBITDA) increased 7.7% to $34.4 million compared to $31.9 million
last year with both the Canadian Operations and International Operations
contributing to the increase. Excluding the foreign exchange impact, trading
profit increased 6.3% compared to last year and was 8.6% as a percentage to
sales compared to 8.3% last year.


Fourth quarter net earnings increased 2.2% to $15.9 million compared to last
year and diluted earnings per share were flat to last year at $0.32 per share.


"Our International performance reflects gains we have made in reducing product
costs and a general improvement in economic conditions", commented Edward
Kennedy, President & CEO. "In Canada, the retail market continues to be more
challenged and we are responding with more innovation in getting sales and in
building our store network capability".


Further information on the financial results is available in the Company's
fourth quarter report to shareholders, Management's Discussion and Analysis and
unaudited interim condensed consolidated financial statements which can be found
in the investor section of the Company's website at www.northwest.ca.


(1) Excluding the foreign exchange impact

(2) See Non-GAAP Measures Section of Management's Discussion & Analysis

(3) Certain of the 2012 comparative figures have been restated in accordance
with the implementation of the revised IAS19, Employee Benefits accounting
standard. Further information is provided in the 2013 fourth quarter
Management's Discussion & Analysis or Note 3 in the Company's 2013 fourth
quarter unaudited interim condensed consolidated financial statements.


New Director Appointment

North West is pleased to announce the appointment of Vi Konkle to the Board of
Directors.


Ms. Konkle is the past President and Chief Executive Officer of the The Brick
Ltd. Prior to joining The Brick in 2010 as President, Business Support, she held
a number of positions with Walmart Canada, including Chief Operating Officer and
Chief Customer Officer. Ms. Konkle also held a number of senior executive
positions with Loblaw Companies Ltd., including Executive Vice President,
Atlantic Wholesale Division.


Ms. Konkle is a board member of Dare Foods, a privately held Canadian based
snack food manufacturer, and a past director of The Brick Ltd., Trans Global
Insurance and the Canadian Chamber of Commerce.


"I am delighted to welcome Vi to the North West Board", said Sanford Riley,
Chairman of the Board. "She is a seasoned executive with extensive experience in
the retail industry".


Fourth Quarter Conference Call

North West is also hosting a conference call for its fourth quarter results on
March 12, 2014 at 2:00 p.m. (Central Standard Time). To access the call, please
dial 416-340-2217 or 866-696-5910 with a pass code of 8782994. The conference
call will be archived and can be accessed by dialing 905-694-9451 or
800-408-3053 with a pass code of 2406196 on or before March 19, 2014.


Notice to Readers

Certain forward-looking statements are made in this news release, within the
meaning of applicable securities laws. These statements reflect North West's
current expectations and are based on information currently available to
management. The words may, will, should, believe, expect, plan, anticipate,
intend, estimate, predict, potential, continue, or the negative of these terms,
identify forward- looking matters. These statements speak only as of the date of
this press release. The actual results could differ materially from those
anticipated in these forward-looking statements.


Reliance should not be placed on forward-looking statements because they involve
known and unknown risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of North West to differ materially
from anticipated future results, performance or achievement expressed or implied
by such forward-looking statements. Factors that could cause actual results to
differ materially from those set forth in the forward-looking statements
include, but are not limited to, fluctuations in interest rates and currency
values, legislative and regulatory developments, legal developments, the
occurrence of weather- related and other natural catastrophes, changes in tax
laws, and those risks and uncertainties detailed in the section entitled Risk
Factors in North West's Management's Discussion and Analysis and Annual
Information Form, both for the year-ended January 31, 2013. The preceding list
is not an exhaustive list of possible factors. These and other factors should be
considered carefully and readers are cautioned not to place undue reliance on
these forward-looking statements. North West undertakes no obligation to
publicly update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise, other than as required by
applicable law.


Company Profile

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 226 stores under the trading names Northern, NorthMart, Giant
Tiger, AC Value Center and Cost-U-Less and has annualized sales of approximately
CDN$1.5 billion.


The common shares of North West trade on the Toronto Stock Exchange under the
symbol NWC.


FOR FURTHER INFORMATION PLEASE CONTACT: 
The North West Company Inc.
Edward Kennedy
President and CEO
204-934-1482
204-934-1317 (FAX)
ekennedy@northwest.ca


The North West Company Inc.
John King
Chief Financial Officer
204-934-1397
204-934-1317 (FAX)
jking@northwest.ca
www.northwest.ca

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