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Press release from CNW Group

BMTC Group Inc. announces financial results for its quarter ended June 30th, 2012

Monday, August 13, 2012

BMTC Group Inc. announces financial results for its quarter ended June 30th, 201219:40 EDT Monday, August 13, 2012MONTREAL, Aug. 13, 2012 /CNW Telbec/ -For the six month period ended June 30th, 2012, the Company's revenues decreased by $16,719,000 to $340,601,000, compared to $357,320,000 recorded in the corresponding 2011 period. Net earnings for the six month period ended June 30th, 2012, amounted to $12,122,000 compared to $24,270,000 for the corresponding 2011 period resulting in a net basic earnings per share of $0.25 compared to $0.48 in 2011.The effect of costing of options had no impact on net basic earnings per share, compared to a decrease of $0.04 per basic share for corresponding 2011 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 that varies according to a calculation based on the Black-Scholes method. An increase in that value is recorded as an expense, while a decrease in value has the opposite effect. Of particular concern is the reader may conclude that the Company's profitability has risen in the context of a major decrease in the value attributed. For this reason the Company discloses net adjusted earnings in absolute dollars and on a per share basis to exclude the effect of costing options. These adjusted figures are likely not comparable with the same type of measures reported by other public issuers. It is worth noting that the Company offers a stock option program that allows the holder to receive cash in lieu of shares upon exercising stock options therefore making BMTC Group Inc. one of the few public companies to expense options on an ongoing basis.The share repurchase program contributed to an increase of net per basic share earnings of $0.03.Excluding of costing of options, net earnings would have decreased by $14,405,000 or $0.30 per net basic share.The decrease of $14,405,000 is explained as follows: 2012 2011 ($ in thousands)Net Earnings12 122 24 270Variation of cost of options (after-tax)(150) 2 107Adjusted Net Earnings11 972 26 377Adjusted Net Earnings for the 2011 period(26 377)  Decrease(14 405)   ($ in thousands)Increase (decrease)retail operatingearningsIncrease (decrease)investment incomeIncrease (decrease) adjustedoperating earnings    1st quarter 2012(7 586)(154)(7 740)2nd quarter 2012(6 310)(355)(6 665)Total:(13 896)(509)(14 405)Annual Financial Information($ in thousands, except for per share amounts)     2011 2010 $ $Revenue748 731 822 507Net earnings57 231 74 193Total Assets274 446 320 182Net Earnings per share    Basic1,16 1,44 Diluted1,16 1,38Dividends per share0,24 0,24Quarterly Results (unaudited)($ in thousands, except for per share amounts)          March 31June 30September 30December 30 20122011201220112011201020112010 $$$$$$$$Revenue154 760163 174185 841194 146196 715215 712194 156215 846         Net (loss) earnings(1 760)2 81413 88221 45617 85721 36215 10432 044         Net (loss) earnings per share         Basic(0,04)0,050,290,430,360,410,320,63 Diluted(0,04)0,050,290,420,360,400,330,59For the three month period ended June 30th, 2012, the Company's revenues decreased by $8,305,000 to $185,841,000, compared to $194,146,000 recorded in the corresponding 2011 period. Net earnings for the three month period ended June 30th, 2012, amounted to $13,882,000 compared to $21,456,000 for the corresponding 2011 period resulting in a net basic earnings per share of $0.29 compared to $0.43 in 2011. The effect of costing of options had no impact on net basic earnings per share, compared to an increase of $0.02 per basic share for corresponding 2011 period.The share repurchase program contributed to an increase of net per basic share earnings of $0.04.Excluding of costing of options, net earnings would have decreased by $6,665,000 or $0.14 per net basic shareThe decrease of $6,665,000 is explained as follows: 2012 2011 ($ in thousands)Net Earnings13 882 21 456Variation of cost of options (after-tax)(165) (1 074)Adjusted Net Earnings13 717 20 382Adjusted Net Earnings for the 2011 period(20 382)  Decrease(6 665)  During the six month period ended June 30th, 2012, no options were granted or exercised. As at June 30th, 2012, options for 262,800 Class A Subordinate Voting Shares, representing 0.005% of the Company's outstanding shares remain issued and 5,710,864 authorized share options, representing approximately 12.00% of the Company's outstanding shares, may still be granted pursuant to the Plan. The issued and outstanding options may be exercised at a price of $17.85 per Class A Subordinate Voting Shares.The number of outstanding shares of the Company changed during the three month period ended June 30th, 2012 pursuant to the normal course issuer bid renewed on March 8th, 2012 and the conversion of Class B Multiple Voting Shares. Accordingly, 730,000 Class A Subordinate Voting Shares were repurchased and cancelled by the Company and 144,252 Class B Multiple Voting Shares were converted into 144,252 Class A Subordinate Voting Shares. As a result of these changes the Company had on June 30th, 2012, 1,974,583 Class B Multiple Voting Shares and 45,570,417 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 16th, 2012 which will be payable on August 23rd, 2012.BMTC Group Inc.'s Class A Subordinate Voting Shares are listed on the Toronto Stock Exchange and through its subsidiaries, ABTM Group Inc. and Ameublements Tanguay Inc., is a major retailer of furniture, electronic goods and household appliances operating in the 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 areas. SOURCE: BMTC GROUP INC.For further information: Mr. Yves Des Groseillers Chairman, President and Chief Executive Officer BMTC Group inc. (514) 648-5757