BMTC Group Inc. announces financial results for its quarter ended September 30th, 2013

MONTREAL, Nov. 7, 2013 /CNW Telbec/ - For the nine month period ended September 30^th, 2013, the Company's revenues decreased by $15,625,000 to $520,575,000, compared to $536,200,000 recorded in the corresponding 2012 period. Net earnings for the nine month period ended September 30^th, 2013, amounted to $30,629,000 compared to $32,257,000 for the corresponding 2012 period. Basic net earnings per share decreased to $0.66 compared to $0.67 in 2012.

The effect of costing options had no impact on net basic earnings per share for the nine month period ended September 30^th, 2013, compared to an increase of $0.01 for the corresponding 2012 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 increased in the context of a major decrease in the value attributed. For this reason the Company discloses adjusted net 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 sale of fixed assets during the 2012 period resulted in an increase in net per share earnings of $0.02 while no corresponding amount for the 2013 period.

The share repurchase program contributed to an increase of $0.02 in basic net earnings per share during the nine month period ended September 30^th, 2013.

Excluding this effect, net earnings would have increased by $99,000 or $0.00 per basic share for the nine month period ended September 30^th, 2013.

The $99,000 variation in adjusted net earnings in 2013 is as follows:

	2013		2012
	($ in thousands)
Net Earnings	30 629		32 257
(Gain) resulting from the sale of fixed assets (after-tax)	-		(1 189)
Variation of cost of options (after-tax)	(175)		(515)
Adjusted Net Earnings	30 454		30 553
Minus: Adjusted Net Earnings for 2012	30 553
Variation	(99)

This variation in adjusted after-tax operating income is allocated as follows:

($ in thousands)
	Increase (decrease)		Increase (decrease)		Increase (decrease)
	retail operating		investment		adjusted
	earnings		income		operating earnings
1^st quarter 2013	1 678		1 178		2 856
2^nd quarter 2013	344		(477)		(133)
3^rd quarter 2013	(3 574)		752		(2 822)
Total	(1 552)		1 453		(99)

Annual Financial Information
($ in thousands, except for per share amounts)

		2013		2012
		$		$
Revenue		716 870		748 731
Net Earnings		44 955		57 231
Total Assets		285 318		274 446
Net earnings Per Share
	Basic	0,94		1,16
	Diluted	0,94		1,16
Dividends Per Share		0,24		0,24

Quarterly Results (Unaudited)
($ in thousands, except for per share amounts)

		March 31		June 30		September 30		December 30
		2013	2012	2013	2012	2013	2012	2012	2011
		$	$	$	$	$	$	$	$
Revenue		151 849	154 760	181 411	185 841	187 315	195 599	180 670	194 156
Net Earnings (Loss)		1215	(1 760)	13 574	13 882	15 840	20 135	12 698	15 104
Net Earnings (Loss) Per Share
	Basic	0,03	(0,04)	0,29	0,29	0,34	0,42	0,27	0,32
	Diluted	0,03	(0,04)	0,29	0,29	0,34	0,42	0,27	0,33

For the three month period ended September 30^th, 2013, the Company's revenues decreased by $8,284,000 to $187,3150,000, compared to $195,599,000 recorded in the corresponding 2012 period. Net earnings for the three month period ended September 30^th, 2013, amounted to $15,840,000 compared to $20,135,000 for the corresponding 2012 period. Basic net earnings per share amounted to $0.34 compared to $0.42 in 2012.

The effect of costing options had no impact on net basic earnings per share for the three month period ended September 30^th, 2013 compared to an increase of $0.01 per basic share for the corresponding 2012 period.

The sale of fixed assets during the 2012 period resulted in an increase in net per share earnings of $0.02 while no corresponding amount for the 2013 period.

The share repurchase program contributed an increase of $0.01 per basic net earnings per share during the three month period ended September 30^th, 2013.

Excluding these effects, the variation to net earnings would have been $2,822,000 or $0.06 per basic share for the three month period ended September 30^th, 2013.

The $2,822,000 variation in adjusted net earnings in 2013 is as follows:

	2013		2012
	($ in thousands)
Net Earnings	15 840		20 135
(Gain) resulting from the sale of fixed assets (after-tax)	-		(1 189)
Variation of cost of options (after-tax)	(81)		(365)
Adjusted Net Earnings	15 759		18 581
Minus: Adjusted Net Earnings for 2012	18 581
Variation	(2 822)

The number of outstanding shares of the Company changed during the nine month period ended September 30^th, 2013, pursuant to the normal course issuer bid on March 13^th, 2013 and the conversion of Class B Multiple Voting Shares. Accordingly, 1,586,000 Class A Subordinate Voting Shares were repurchased and cancelled by the Company and 100,000 Class B Multiple Voting Shares were converted into 100,000 Class A Subordinate Voting Shares. As a result of these changes the Company had on September 30^th, 2013, 1,861,280 Class B Multiple Voting Shares and 43,692,720 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 23^rd, 2013 which will be payable on January 6^th, 2013.

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.

Mr. Yves Des Groseillers
Chairman, President and
Chief Executive Officer
BMTC Group inc.   [phone]