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THE NORTH WEST COMPANY The North West Company 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 . NEWS RELEASE - FOR IMMEDIATE RELEASE The North West Company Inc. Announces Third Quarter Earnings and a Quarterly Dividend Winnipeg , Manitoba , December 8 , 2021 ( TSX : NWC ) : The North West Company Inc. ( the " Company " or " North West " ) today reported its unaudited financial results for the third quarter ended October 31 , 2021. It also announced that the Board of Directors have declared a dividend of $ 0.37 per share to shareholders of record on December 31 , 2021 , to be paid on January 14 , 2022 . " The results this quarter reflect our strong in - stock position and the impact of pandemic - related government income support payments despite the comparison to exceptional results last year " said Dan McConnell , President & CEO . " Our priority remains to provide a safe shopping environment and adapting to inflationary pressures and the impact of pandemic - related global supply chain disruptions . As we transition through COVID - 19 conditions and the winding down of government income support payments , we are continuing to pursue growth opportunities through investments in new markets like the two stores opened in Alaska this quarter . " Financial Highlights Sales Third quarter consolidated sales increased 0.1 % to $ 553.7 million as sales gains in International Operations were partially offset by the negative impact of foreign exchange on the translation of International Operations sales and marginally lower same store sales compared to the exceptional COVID - 19 - related sales gains last year . On a same store basis , sales remained strong with a decrease of only 0.1 % compared to a 17.8 % increase in the third quarter last year , but were up 17.4 % compared to the third quarter of 2019 , as the continuing impact of COVID - 19 - related factors including in - community spending and income support for individuals was less than last year . Gross Profit Gross profit decreased 2.3 % due to an 82 basis point decrease in gross profit rate compared to last year . The decrease in gross profit rate was primarily due to changes in product sales blend in Canadian Operations and the impact of inflation cost factors that were not fully passed on . Selling , Operating and Administrative Expenses Selling , operating and administrative expenses ( " Expenses " ) decreased $ 7.4 million or 5.6 % compared to last year and were down 137 basis points as a percentage to sales substantially due to an $ 8.3 million decrease in share - based compensation costs primarily related to mark - to - market adjustments resulting from changes in the Company's share price . A decrease in Expenses related to the impact of foreign exchange on the translation of International Operations Expenses and lower COVID - 19 - related expenses were also factors . Earnings From Operations Earnings from operations increased 5.9 % to $ 56.1 million compared to $ 52.9 million last year and earnings before interest , income taxes , depreciation and amortization ( " EBITDA2 " ) increased 3.9 % to $ 78.6 million compared to $ 75.7 million last year . The increase compared to last year is due to the impact of the Expense factors previously noted . Adjusted EBITDA² , which excludes share - based compensation costs , decreased $ 5.4 million compared to last year and as a percentage to sales was 14.1 % compared to 15.1 % last year due to the sales , gross profit and Expense factors previously noted , but was up $ 19.4 million or 33.0 % compared to 2019 . 1 Excluding the impact of foreign exchange 2 See Non - GAAP Measures Section of Management's Discussion & Analysis