The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from CNW Group

BMTC Group Inc. announces financial results for its year ended December 31st, 2011

Friday, February 24, 2012

BMTC Group Inc. announces financial results for its year ended December 31st, 201108:26 EST Friday, February 24, 2012MONTREAL, Feb. 24, 2012 /CNW Telbec/ - For the fiscal year ended December 31st, 2011, the Corporation's revenue decreased by $73,776,000 to $748,731,000, from the $822,507,000 recorded in the corresponding 2010 period. Net income for the fiscal year ended December 31st, 2011, stood at $57,231,000 compared with $74,193,000, for the previous fiscal year. Basic earnings per share decreased from $1.44 in 2010 to $1.16 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 $0.19 per basic share for the previous year. While the Corporation costs options as either an expense or revenue in the net earnings calculation, the Corporation believes it is preferable to inform readers of its financial statements of the impact of this element, which is outside the Corporation'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 Corporation's profitability had risen in the context of a major decrease in the value attributed. It is for this reason that the Corporation 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 Corporation 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.During the month of December 2011, the Corporation paid an amount of $9,518,000 before taxes or $6,815,000 after taxes or $0.14 per basic share, as a contribution to pension fund for past services in order to cover the solvability deficit that occurred during the 2010 period. The share repurchase program contributed $0.08 to net per basic share earnings.Excluding these effects, net earnings would have decreased by $18,060,000 or $0.37 per basic share.The adjusted $18,060,000 decrease in net earnings breaks down as follows: 20112010 ($ in thousands)Net Earnings57,23174,193Variation of cost of options (after-tax)1,8429,755Contribution to pension fund for past services6,815-Adjusted Net Earnings65,88883,948MINUS : Adjusted Net Earnings for the 2010 period83,948 Decrease 201118,060 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)9281793rd quarter 2011(7,433)(1,552)(8,985)4th quarter 2011(7,083)288(6,795)Total:(18,462)402(18,060)Annual Financial Information($ in thousands, except for per share amounts) IFRSGAAP* 2011201020102009Revenue748,731822,507822,507818,072Net earnings57,23174,19375,12267,029Total Assets274,446320,182347,502 313,925Net Earnings per share**            Basic            Diluted 1.161.16 1.441.38 1.461.40 1.271.23Dividends per share0.240.240.240.19*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, all comparables have been adjusted.Quarterly Results (unaudited)($ in thousands, except for per share amounts) March 31June 30September 30December 3120112010201120102011201020112010$$$$$$$$Revenue163,714183,148194,146207,801196,715215,712194,156215,846Net earnings2,8143,82121,45616,96617,85721,362 15,10432,044Net Earnings per share*            Basic            Diluted0.050.050.070.060.430.420.330.330.360.360.410.400.320.330.630.59* 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 December 31st, 2011, the Corporation's revenue decreased by $21,690,000 to $194,156,000 from the $215,846,000 recorded in the corresponding 2010 period. Net income for the three month period ended December 31st, 2011, stood at $15,104,000 or $0.32 per basic share compared with $32,044,000 or $0.63 per basic share, for the corresponding 2010 period. The result from costing of options had the effect of increasing the basic earnings per share by $0.02 compared to an increase of $0.09 for the corresponding 2010 period. The share repurchase program increased by $0.02 to net basic per share earnings for the quarter ended December 31st, 2011.During the month of December 2011, the Corporation paid an amount of $9,518,000 before taxes or $6,815,000 after taxes or $0.14 per basic share, as a contribution to pension fund for past services in order to cover the solvability deficit that occurred during the period.Excluding these effects, net earnings would have decreased by $6,795,000 or $0.14 per basic share for the three-month period ended December 31st, 2011.The adjusted $6,795,000 decrease in net earnings breaks down as follows for the three-month period ended December 31st, 2011: 2011 2010 ($ in thousands)Net Earnings15,10432,044Variation of cost of options (after-tax)(1,224)(4,554)Contribution to pension fund for past services6,815-Adjusted Net Earnings20,695 27,490MINUS : Adjusted Net Earnings for the 2010 period27,490 Decrease 20116,795 During the twelve month period ended December 31st, 2011, options were exercised. On March 16th, 2011, the Corporation 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 Corporation 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. On November 17th, 2011, the Corporation paid an amount before tax of $12,649,199 as cash award in lieu of shares, as a result of the exercise of 690,223 options. As at December 31st, 2011, options for 262,800 Class A Subordinate Voting Shares, representing 0,005% of the Corporation's shares in circulation, therefore remain outstanding and 5,710,864 options, representing 12% of the Corporation's shares in circulation, may still be issued pursuant to the Plan. The outstanding options may be exercised at a price of $17.85 per Class A Subordinate Voting Shares.The number of outstanding shares of the Corporation changed during the twelve month period ended December 31st, 2011 due to the share redemption programs implemented in March 2011 and the conversion of Class B Multiple Voting Shares. Accordingly, 2,410,500 Class A Subordinate Voting Shares were redeemed by the Corporation and cancelled and 346,951 Class B Multiple Voting Shares were converted into 346,951 Class A Subordinate Voting Shares. As a result of these changes, the Corporation had, as of December 31st, 2011, 2,118,835 Class B Multiple Voting Shares and 46,156,165 Class A Subordinate Voting Shares outstanding.During the fiscal year, the Corporation paid eligible dividends of $0.24 per share to holders of Class A Subordinate Voting Shares and Class B Multiple Voting Shares.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