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Press release from CNW Group

BMTC GROUP INC. ANNOUNCES FINANCIAL RESULTS FOR ITS QUARTER ENDED SEPTEMBER 30TH, 2010

Thursday, November 04, 2010

BMTC GROUP INC. ANNOUNCES FINANCIAL RESULTS FOR ITS QUARTER ENDED SEPTEMBER 30TH, 201020:11 EDT Thursday, November 04, 2010MONTREAL, Nov. 4 /CNW Telbec/ - BMTC Group inc. announced that for the nine month period ended September 30th, 2010, the Company's revenue totalled $606,661,000 an increased of $12,537,000 compared to the $594,124,000 recorded in the corresponding 2009 period. For the nine month period ended September 30th, 2010, the net income stood at $42,474,000 compared to $48,286,000, for the corresponding 2009 period.  The net earnings per basic share stood at $0.82 compared to $0.91 for the corresponding 2009 period. Results from the costing of options had the effect of reducing net basic earnings by $0.26 per share, compared to a decrease of $0.07 per basic share for the previous year. While the Company costs options as either an expense or revenue in the net earnings calculation, the Company believes it is preferable to inform readers of its financial statements of the impact of this element, which is outside the Company's control and which varies along with the course of the Company's share price in any given time period. An increase in the Company's share price incurs an expense, while a decrease in the Company's share price incurs revenue. Of particular concern is that the reader could be made to believe that the Company's profitability had risen in the context of a major decrease in the Company's share price. It is for this reason that the Company includes net earnings in absolute dollars and per-share dollars excluding this costing of options effect, even though doing so does not conform to GAAPs, it is therefore unlikely that we can compare them with the same type of measures presented by other issuers. It is worth noting that the Company offers a stock option program that allows the holder to exercise his options in lieu of cash therefore being one of few public companies to expense options on an ongoing basis.The share repurchase program contributed in an increase of net earnings per basic share of $0.03 for the period.Excluding all these effects, net earnings would have increased by $3,853,000 or $0.07 per basic share for the period.The adjusted $3,853,000 increase in net earnings breaks down as follows: 20102009                ($ in thousands)Net Earnings               42,474               48,286Cost of options (after-tax)               13,430                 3,765Adjusted Net Earnings               55,904               52,051MINUS : Adjusted Net Earnings for the 2009 period                       52,051 Increase 2010                 3,853 This increase in adjusted and after tax operating earnings was spread out through the quarters as follows:          ($ in thousands)       Increase retailoperating earnings Increase (decrease)investment income Increase (decrease)adjustedoperating earnings1st quarter 20103,338   6894,027       2nd quarter 20103,438(4,382)  (944)       3rd quarter 20101,762  (992)  770       4th quarter 2010    Total:              8,538           (4,685)             3,853Annual Financial Information 200920082007 ($ in thousands, except for per share amounts) Revenue   $818,072      $856,229      $841,544Net earnings       67,029        69,908       49,033Total Assets     313,925     244,532     284,939Net Earnings per share*                          Basic      Diluted      $1.27      1.23      $1.18      1.14      $0.77      0.74Dividends per share      0.19      0.18      0.15* After taking into account the 2 for 1 stock split effect of April 6th, 2010.Quarterly Results (unaudited)($ in thousands, except for per share amounts) Quarter EndedMarch 31Quarter EndedJune 30Quarter EndedSeptember 30Quarter EndedDecember 31 20102009201020092010200920092008Revenue$183,148  $168,805  $207,801  $204,956  $215,712  $220,363  $223,948  $216,848Net earnings      3,6153,084   17,914   19,685    20,945    25,517    18,743    21,856Net Earnings per share*                               Basic        0.070.06        0.34        0.36      0.41      0.49       0.36        0.40      Diluted       0.06  0.05     0.34    0.35      0.40      0.48       0.35        0.38* After taking into account the 2 for 1 stock split effect of April 6th, 2010.As for the three-month period ended September 30th, 2010 revenues from operations totaled $215,712,000, representing an decrease of 4,651,000$ over the $220,363,000 for the corresponding 2009 period. The Company's net income for the three-month period ended September 30th, 2010, totaled $20,945,000, or $0.41 per basic share, compared with $25,517,000 or $0.49 per basic share for the corresponding 2009 period.  For the three-month period ended September 30th 2010, the results from the variation of costing options had the effect of reducing the earnings per basic share by $0.13 compared with a decrease in earnings of $0.03 for the corresponding 2009 period. The share repurchase program contributed $0.01 to net per basic share earnings for the quarter ended September 30th, 2010.Excluding these effects, as indicated in the following table, net earnings would have increased by $770,000 or $0.01 per basic share for the three-month period ended September 30th, 2010 compared to the corresponding period. 20102009         ($ in thousands, except for per share amounts)Net Earnings20,94525,517Cost of options (after-tax)6,6721,330Adjusted Net Earnings27,61726,847MINUS : Adjusted Net Earnings for 2008 corresponding quarter26,847   Increase 2010770   During the nine month period ended September 30th, 2010, options were exercised on three occasions. First, on February 25th, 2010, the Company paid an amount before tax of $770,032 as cash award in lieu of shares, as a result of the exercise of 24,461 options. Secondly, on February 26th, 2010, the Company paid an amount before tax of $9,360,944 as cash award in lieu of shares, as a result of the exercise of 297,597 options, thirdly on August 16th, 2010, the Company paid an amount before tax of $353,260 as a cash award in lieu of shares as a result of the exercise of 15,884 options. On April 1st, 2010, the Company granted 131,400 options at an exercised price of $35.70 for a period of 10 years, to its directors and management. On April 6th, 2010, the Company issued 1,035,342 options following the 2 for 1 stock split. As at September 30th, 2010, options for 2,054,800 Class A Subordinate Voting Shares, representing 4% of the Company's shares in circulation, therefore remain outstanding and 5,710,864 options, representing 11% of the Company's shares in circulation, may still be issued pursuant to the Plan. The outstanding options may be exercised at prices ranging between $3.60 and $17.85 per Class A Subordinate Voting Shares.The number of outstanding shares of the Company changed during the nine month period ended September 30th, 2010 due to the share redemption programs implemented in February 2010, the 2 for 1 stock split on April 6th, 2010 and the conversion of Class B Multiple Voting Shares. Accordingly, 1,303,300 Class A Subordinate Voting Shares were redeemed by the Company and cancelled, while the Company issued 10,037,987 class B multiple voting shares and 15,962,013 Class A subordinate voting shares following the 2 for 1 stock split, and finally 17,720,892 Class B Multiple Voting Shares were converted into 17,720,892 Class A Subordinate Voting Shares. As a result of these changes, the Company had, as of September 30th, 2010, 2,577,786 Class B Multiple Voting Shares and 48,261,714 Class A Subordinate Voting Shares outstanding.A semi-annual eligible dividend of $0.12 per share has been declared to holders of Class A Subordinate voting shares and Class B Multiple voting shares of record as of the close of business on December 17th, 2010,  which will be payable on January 3rd, 2011.BMTC Group Inc., which Class A Subordinate Voting Shares are listed on the Toronto Stock Exchange, is an important retailer of furniture, electronic goods and household appliances in the Montreal, Quebec City, Laval, Ste-Foy, Sherbrooke, Trois-Rivières, Rimouski, St-Georges, Rivière-du-Loup, Chicoutimi, and Gatineau regions through its affiliates Brault & Martineau Inc. and Ameublements Tanguay.For further information: Mr. Yves Des Groseillers Chairman, President and Chief Executive Officer BMTC Group Inc.(514) 648-5757