BMTC Group inc. announces financial results for its quarter ended March 31st,
2010
MONTREAL, May 6 /CNW Telbec/ - BMTC Group inc. announced that for the quarter ended March 31st, 2010, the Company's revenue totalled $183.1 million an increase of $14.3 million compared to the $168.8 million recorded in the corresponding 2009 period. For the quarter ended March 31st, 2010, the net income stood at $3.6 million compared to $3.1 million, for the corresponding 2009 period. The net earnings per share stood at $0.14 compared to $0.11 for the corresponding 2009 period.
Results from the costing of options had the effect of reducing net basic earnings by $0.18 per share, compared to a decrease of $0.04 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 $0.02 for the period.
Excluding all these effects, net earnings would have increased by $4.0 million or $0.15 per basic share for the period.
The adjusted $4.0 million increase in net earnings breaks down as follows:
2010 2009
($ in thousands)
Net Earnings 3,615 3,084
Expense of options (after-tax) 4,655 1,159
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Adjusted Net Earnings 8,270 4,243
MINUS : Adjusted Net Earnings for the 2009 period 4,243
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Increase 2010 4,027
This increase in adjusted and after tax operating earnings was spread out through the quarters as follows:
($ in thousands)
Increase Increase
retail Increase adjusted
operating Investment operating
earnings income earnings
1st quarter 2010 3,336 691 4,027
2nd quarter 2010
3rd quarter 2010
4th quarter 2010
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Total: 3,336 691 4,027
Annual Financial Information
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2009 2008 2007
---- ---- ----
($ in thousands, except for per
share amounts)
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Revenue $818,072 $856,229 $841,544
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Net earnings 67,029 69,908 49,033
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Total Assets 313,925 244,532 284,939
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Net Earnings per share
Basic $2.53 $2.36 $1.54
Diluted 2.45 2.27 1.48
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Dividends per share 0.38 0.35 0.29
Quarterly Results (unaudited)
($ in thousands, except for per share amounts)
Quarter Ended Quarter Ended
March 31 June 30
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2010 2009 2009 2008
---- ---- ---- ----
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Revenue $183,148 $168,805 $204,956 $225,508
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Net earnings 3,615 3,084 19,685 17,094
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Net Earnings per share
Basic 0.14 0.11 0.72 0.55
Diluted 0.13 0.10 0.70 0.54
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Quarter Ended Quarter Ended
September 30 December 31
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2009 2008 2009 2008
---- ---- ---- ----
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Revenue $220,363 $232,129 $223,948 $216,848
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Net earnings 25,517 19,389 18,743 21,856
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Net Earnings per share
Basic 0.98 0.65 0.72 0.79
Diluted 0.95 0.62 0.70 0.76
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No options have been granted during the period ended March, 31st, 2010. During the same period, options were exercised on two 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. As at March 31st, 2010, options for 903,942 Class A Subordinate Voting Shares, representing 4% of the Company's shares in circulation, therefore remain outstanding and 2,986,832 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 $2.52 and $7.19 per Class A Subordinate Voting Shares.
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.
The number of outstanding shares of the Company changed during the three month period ended March 31st, 2010 due to the share redemption programs implemented in February 2010 and the conversion of Class B Multiple Voting Shares. Accordingly, 142,800 Class A Subordinate Voting Shares were redeemed by the Company and cancelled, while 222,704 Class B Multiple Voting Shares were converted into 222,704 Class A Subordinate Voting Shares. As a result of these changes, the Company had, as of March 31st, 2010, 10,037,987 Class B Multiple Voting Shares and 15,962,013 Class A Subordinate Voting Shares outstanding.
All shareholders and option holders received, on or about April 9, 2010, one additional Class A Subordinate Voting Share for each such share held, and one additional Class B Multiple Voting Share for each such share held and one additional option for each such option held, on April 6th 2010, the record date for the stock split. Pursuant to the rules of the Toronto Stock Exchange, BMTC's Class A Subordinate Shares commenced trading on a split basis at the opening of business on April 1, 2010, being the second trading day prior to the record date for the stock split.
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
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