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Press release from CNW Group

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

Thursday, November 10, 2011

BMTC Group Inc. announces financial results for its quarter ended September 30th, 201120:15 EST Thursday, November 10, 2011MONTREAL, Nov. 10, 2011 /CNW Telbec/ - For the nine month period ended September 30th, 2011, the Company's revenue decreased by $52,626,000 to $554,035,000, from the $606,661,000 recorded in the corresponding 2010 period. Net earnings for the nine month period ended September 30th, 2011, stood at $42,127,000 compared with $42,149,000, for the corresponding 2010 period. Basic earnings per share increased going from $0.81 in 2010 to $0,84 in 2011.Results from the costing of options had the effect of reducing net basic earnings by $0.06 per share, compared to a decrease of $0.28 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 $0.04.Excluding this effect, net earnings would have decreased by $11,265,000 or $0.23 per basic share.The adjusted $11,265,000 decrease in net earnings breaks down as follows: 2011 2010 ($ in thousands)Net Earnings42,127 42,149Variation of cost of options (after-tax)3,066 14,309Adjusted Net Earnings45,193 56,458MINUS : Adjusted Net Earnings for the 2010 period56,458  Decrease 201111,265This 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)9281793rd quarter 2011(7,433)(1,552)(8,985)4th quarter 2011   Total:(11,379)114(11,265)Annual Financial Information($ in thousands, except for per share amounts)        IFRS GAAP* 2010 2010 2009Revenue 822,507 822,507 818,072Net earnings74,193 75,122 67,029Total Assets320,182 347,502 313,925Net Earnings per share**      BasicDiluted1.441.38 1.461.40 1.271.23Dividends per share0.24 0.24 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)                       March 31 June 30     September 30     December 31 2011 2010 2011 2010 2011 2010 2010 2009* $ $ $ $ $ $ $ $Revenue163,174 183,148 194,146 207,801 196,715 215,712 215,846 223,948Net earnings2,814 3,821 21,456 16,966 17,857 21,362 32,044 18,743Net Earnings per share**                Basic0.05 0.07 0.43 0.33 0.36 0.41 0.63 0.36 Diluted0.05 0.06 0.42 0.33 0.36 0.40 0.59 0.35*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 September 30th, 2011, the Company's revenue decreased by $18,997,000  to $196,715,000, from the $215,712,000 recorded in the corresponding 2010 period. Net earnings for the three month period ended September 30th, 2011, stood at $17,857,000 compared with $21,362,000, for the corresponding 2010 period. Basic earnings per share decrease going from $0.41 in 2010 to $0.36 in 2011. Results from the costing of options had the effect of reducing net basic earnings by $0.02 per share, compared to a decrease of $0.13 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 decreased by $8,985,000 or $0.18 per basic share.The adjusted $8,985,000 decrease in net earnings breaks down as follows: 2011 2010 ($ in thousands)Net Earnings17,857 21,362Variation of cost of options (after-tax)959 6,439Adjusted Net Earnings18,816 27,801MINUS : Adjusted Net Earnings for the 2010 period27,801  Decrease 20118,985 During the nine month period ended September 30th, 2012, options were exercised on two occasions. 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. On July 21st, 2011, the Company paid an amount before tax of $250,001 as cash award in lieu of shares, as a result of the exercise of 13,777 options. As at September 30th, 2011, options for 953,023 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 nine month period ended September 30th, 2011 due to the share redemption programs implemented in March 2011 and the conversion of Class B Multiple Voting Shares. Accordingly, 2,138,400 Class A Subordinate Voting Shares were redeemed by the Company and cancelled and also 262,151 Class B Multiple Voting Shares were converted into 262,151 Class A Subordinate Voting Shares. As a result of these changes, the Company had, as of September 30th, 2011, 2,203,635 Class B Multiple Voting Shares and 46,343,465 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 21st, 2011 which will be payable on January 2nd, 2012.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