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Press release from CNW Group

BMTC Group Inc. announces financial results for its quarter ended June 30th, 2011

Friday, August 12, 2011

BMTC Group Inc. announces financial results for its quarter ended June 30th, 201108:12 EDT Friday, August 12, 2011MONTREAL, Aug. 11, 2011 /CNW Telbec/ - For the six month period ended June 30th, 2011, the Company's revenue decreased by $33,629,000  to $357,320,000, from the $390,949,000 recorded in the corresponding 2010 period. Net earnings for the six month period ended June 30th, 2011, stood at $24,270,000 compared with $20,787,000, for the corresponding 2010 period. Basic earnings per share increased going from $0.40 in 2010 to $0.48 in 2011.Results from the costing of options had the effect of reducing net basic earnings by $0.04 per share, compared to a decrease of $0.15 per basic share for corresponding 2010 period. 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 according to calculation based on the Black Scholes method. An increase in this value incurs an expense, while a decrease 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 value attributed. It is for this reason that the Company includes net earnings in absolute dollars and per-share dollars excluding this costing of options effect; 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 contribute to an increase of net per basic share earnings of $0.02.Excluding this effect, net earnings would have decreased by $2,280,000 or $0.05 per basic share.The adjusted $2,280,000 decrease in net earnings breaks down as follows: 20112010 ($ in thousands)Net Earnings24,27020,787Variation of cost of options (after-tax)2,1077,870Adjusted Net Earnings26,37728,657MINUS : Adjusted Net Earnings for the 2010 period28,657               Decrease 2011(2,280) This decrease in adjusted and after tax operating earnings was spread out through the quarters as follows: ($ in thousands)Increase (decrease) Increase (decrease)retail operatingIncrease (decrease)adjustedearningsinvestment incomeoperating earnings    1st quarter 2011(3,197)738(2,459)2nd quarter 2011  (749)928    1793rd quarter 2011   4th quarter 2011   Total:(3,946)1,666(2,280)Annual Financial Information($ in thousands, except for per share amounts)                IFRSGAAP* 201020102009Revenue  822,507822,507818,072Net earnings       74,19375,122       67,029Total Assets     320,182347,502     313,925Net Earnings per share**    Basic      1.441.46      1.27 Diluted      1.38      1.40      1.23Dividends per share      0.240.24      0.19*The financial information has been prepared in accordance with Canadian Generally Accepted Accounting Principles (« GAAPs »)** After taking into account the 2 for 1 stock split effect of April 6th, 2010, comparables have been adjusted.Quarterly Results (unaudited)($ in thousands, except for per share amounts)            June 30      June 30    September 30    December 31201120102011201020102009*20102009*$$$$$$$$Revenue163,174183,148194,146207,801215,712220,363215,846223,948Net earnings2,814      3,82121,456   16,966    21,36225,51732,04418,743Net Earnings per share**                   Basic0.05        0.070.43        0.33      0.41 0.490.630.36           Diluted0.05        0.060.42     0.33      0.40 0.480.590.35*The financial information has been prepared in accordance with Canadian Generally Accepted Accounting Principles (« GAAPs »)** After taking into account the 2 for 1 stock split effect of April 6th, 2010, comparables have been adjusted.For the three month period ended June 30th, 2011, the Company's revenue decreased by $13,655,000 to $194,146,000,  from the $207,801,000 recorded in the corresponding 2010 period. Net earnings for the three month period ended June 30th, 2011, stood at $21,456,000 compared with $16,966,000, for the corresponding 2010 period. Basic earnings per share increased going from $0.33 in 2010 to $0.43 in 2011. Results from the costing of options had the effect of increasing net basic earnings by $0.02 per share, compared to a decrease of $0.06 per basic share for corresponding 2010 period.The share repurchase program contribute to an increase of net per basic share earnings of $0.02.Excluding this effect, net earnings would have increased by $179,000.The adjusted $179,000 increase in net earnings breaks down as follows: 2011 2010 ($ in thousands)Net Earnings21,45616,966Variation of cost of options (after-tax)(1,074)3,237Adjusted Net Earnings20,38220,203MINUS : Adjusted Net Earnings for the 2010 period20,203               Increase 2011179 During the six month period ended June 30th, 2012, options were exercised. On March 16th, 2011, the Company paid an amount before tax of $21,114,000 as cash award in lieu of shares, as a result of the exercise of 1,088,000 options. As at June 30th, 2011, options for 966,800 Class A Subordinate Voting Shares, representing 2% of the Company's shares in circulation, therefore remain outstanding and 5,710,864 options, representing 12% 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 six month period ended June 30th, 2011 due to the share redemption programs implemented in March 2011 and the conversion of Class B Multiple Voting Shares. Accordingly, 1,494,500 Class A Subordinate Voting Shares were redeemed by the Company and cancelled and also 212,143 Class B Multiple Voting Shares were converted into 212,143 Class A Subordinate Voting Shares. As a result of these changes, the Company had, as of June 30th, 2011, 2,253,643 Class B Multiple Voting Shares and 46,937,357 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 August 18th, 2011 which will be payable on August 25th, 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 appliances in the areas of Montreal, Quebec City, Repentigny, Ste-Therese, Laval, Longueuil, Kirkland, St-Georges, Trois-Rivières, Sherbrooke, Chicoutimi, Rivière-du-Loup, Rimouski, Levis, Beauport, Ste-Foy, Gatineau, Ste-Hyacinthe, St-Jean-sur-le-Richelieu, Granby, Vaudreuil, Mascouche and St-Jérôme through its subsidiary Brault & Martineau and Ameublements Tanguay. For further information: Mr. Yves Des Groseillers Chairman, President and Chief Executive Officer BMTC Group inc.   (514) 648-5757