Detailed Version - UFA.com

The Commercial Construction Division incurred a negative EBITDA of $4.4 million in 2011. The losses are
primarily due to cost escalations on the Slave Lake and Vauxhall projects. UFA is exiting from this line of business
and will have substantially completed the remaining projects by end of March 2012.
The Wholesale Sports Division had stronger earnings in 2011. EBITDA increased by $1.6 million, driven by
sales growth of $9.6 million over the prior year. Gross margin increased by $4.0 million, and was higher as a
percentage of sales, compared with 2010. Margins for the year were held back by the need to strategically
manage obsolete and slow moving inventory. The 2011 results include a full 12 months of operations for two
stores in Canada that opened in Regina and Langley, BC. During quarter 4, 2011, an underperforming store in
Fargo, North Dakota was closed.
Sales for 2011 compared with prior year is given below:
Centralized Services include core activities to support Divisions within UFA, and the consolidated enterprise as a
whole. The services are provided by functional departments that include Environment Health & Safety, Corporate
Strategy, Member and Customer Experience, Information Technology, Legal, Risk and Real Estate, Human
Resources and Finance. As part of the Co-operative‟s three year strategy, significant efforts have been undertaken
to reduce these costs. In 2011 on a comparative basis with 2010, $8.0 million in expenses were eliminated, while
the quality of output increased significantly.
Capital Spending and Depreciation
The net book value of capital assets, including goodwill and intangible assets was $284.2 million. During 2011
UFA invested $13.4 million in property, plant and equipment and intangible assets, down from $22.4 million in
2010. Major projects included the continuation of cardlock renovations and Wholesale Sports technology
stabilization.
2011 SUMMARY OF OPERATIONS 15
UFA 2011 Unabridged Annual Report 17